MINUTES OF THE. Adam Nathanson Ruben Navarro

Transcription

1 MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS BOARD MEETING OF OCTOBER 6, 2016 The Board of Fire and Pension Commissioners of the City of Los Angeles met in the LAFPP Sam Diannitto Boardroom, located at the Los Angeles Fire and Pensions Building, 701 East 3rd Street, Suite 400, Los Angeles on Thursday, October 6, COMMISSIONERS PRESENT: Pedram Salimpour, MD, President George Aliano Corinne T. Babcock Sam Diannitto (participated telephonically) Brian Pendleton Belinda Vega Robert von Voigt COMMISSIONER ABSENT: Adam Nathanson Ruben Navarro DEPARTMENT OF FIRE AND POLICE PENSIONS: CITY ATTORNEY'S OFFICE: Raymond P. Ciranna, General Manager William Raggio, Executive Officer Tom Lopez, Chief Investment Officer Joseph Salazar, Assistant General Manager Rhonda Ketay, Commission Executive Assistant Alan Manning, Assistant City Attorney President Salimpour called the meeting to order at 8:32 a.m. All the above-listed Commissioners were present at the start of the meeting. A. ITEMS FOR BOARD ACTION Item A.2 was taken out of order. 2. PROPOSED RENEWAL OF PRINCIPAL REAL ESTATE INVESTORS, LLC GLOBAL REAL ESTATE INVESTMENT TRUST (REIT) CONTRACT AND POSSIBLE BOARD ACTION

2 Page 2 Ms. Annie Chao, Investment Officer, Investments Division and Mr. Ryan Sullivan, from RVK presented the report to the Board. RESOLUTION Commissioner von Voigt moved that the Board: 1. Approve a new three-year contract with Principal Real Estate Investors, LLC for Global Real Estate Investment Trust (REIT) advisory services; 2. Authorize the General Manager to review and negotiate the terms and conditions with Principal Real Estate Investors, LLC for Global Real Estate Investment Trust (REIT) advisory services for the period of December 1, 2016 through November 30, 2019; and, 3. Authorize the President of the Board, on behalf of the Board, to execute the contract with Principal Real Estate Investors, LLC for Global Real Estate Investment Trust (REIT) advisory services, subject to the approval of the City Attorney as to form and legality, which was seconded by Commissioner Pendleton and approved by the following vote: ayes, Commissioners Aliano, Babcock, Diannitto, Pendleton, Vega, von Voigt, and President Salimpour 7; nays, none. 1. PROPOSED RENEWAL OF PRINCIPAL REAL ESTATE INVESTORS, LLC US REAL ESTATE INVESTMENT TRUST (REIT) CONTRACT AND POSSIBLE BOARD ACTION Ms. Annie Chao, Investment Officer, Investments Division and Mr. Ryan Sullivan, from RVK presented the report to the Board. RESOLUTION Commissioner von Voigt moved that the Board: 1. Approve a new three-year contract with Principal Real Estate Investors, LLC for US Real Estate Investment Trust (REIT) advisory services; 2. Authorize the General Manager to review and negotiate the terms and conditions with Principal Real Estate Investors, LLC for US Real Estate Investment Trust (REIT) advisory services for the period of December 1, 2016 through November 30, 2019; and, 3. Authorize the President of the Board, on behalf of the Board, to execute the contract with Principal Real Estate Investors, LLC for US Real Estate Investment Trust (REIT) advisory services, subject to the approval of the City Attorney as to form and legality, which was seconded by Commissioner Vega and approved by the following vote: ayes,

3 Page 3 Commissioners Aliano, Babcock, Diannitto, Pendleton, Vega, von Voigt, and President Salimpour 7; nays, none. 4. CONTINUATION OF RVK REVIEW OF DOMESTIC EQUITY STRUCTURE AND STAFF SMART BETA PROPOSAL FOR POSSIBLE BOARD ACTION The item was continued to a future meeting. Ms. Elsa Moy provided public comment. 5. ANNUAL INVESTMENT POLICY REVIEW AND POSSIBLE BOARD ACTION Mr. Tom Lopez, Chief Investment Officer, discussed the policy updates with the Board. Commissioner Pendleton moved that the Board approve the recommended actions, which was seconded by Commissioner von Voigt and failed by the following vote: ayes, Commissioners Aliano and Pendleton 2; nays, Babcock, Diannitto, Vega, von Voigt, and President Salimpour - 5. Commissioner Vega questioned the change in indexing contracts from three to five years. Commissioner Vega moved that the Board: RESOLUTION Approve the proposed amendments to Investment Guidelines Policy; 2. Approve the proposed amendment to the Real Estate Policy; 3. Approve the proposed amendments to the Emerging Manager Policy; 4. Not approve the proposed amendment to the Manager Selection Policy; 5. Approve all the remaining formatting, grammatical and clarifying amendments to the overall Board Investment Policies; and, 6. Discuss any other desired amendments to the Investment Policies, which was seconded by Commissioner von Voigt and approved by the following vote: ayes, Commissioners Aliano, Babcock, Diannitto, Pendleton, Vega, von Voigt, and President Salimpour 7; nays, none.

4 Page 4 3. CONTINUATION OF CONSIDERATION OF MICHAEL TOMELLOSO'S APPEAL TO TRANSFER FROM TIER 3 TO TIER 5 AND POSSIBLE BOARD ACTION Officer Tomelloso was represented by Ms. Corina Lee, Los Angeles Protective League, who discussed the merits of the request and provided written testimony from Ms. Laura Lozoya to the Board. Testimony was provided by Ms. Mirza Gallardo, who confirmed her signature and notary stamp on the request to transfer dated December 17, RESOLUTION Commissioner Aliano moved that the Board approve the request of Officer II Michael Tomelloso to transfer from Tier 3 to Tier 5 based on the following findings of fact: the verbal and written testimony, including the presentation of his notarized transfer election form, support the filing of the request to transfer to Tier 5 was timely, which was seconded by Commissioner Pendleton and approved by the following vote: ayes, Commissioners Aliano, Babcock, Diannitto, Pendleton, Vega, von Voigt, and President Salimpour 7; nays, none. 6. APPROVAL OF THE 2017 BOARD MEETING SCHEDULE AND POSSIBLE BOARD ACTION Commissioner Babcock stepped out of the boardroom during the discussion and vote. The report was approved as submitted. RESOLUTION Commissioner von Voigt moved that the Board adopt the 2017 Board Meeting Schedule, which was seconded by Commissioner Vega and approved by the following vote: ayes, Commissioners Aliano, Diannitto, Pendleton, Vega, von Voigt, and President Salimpour 6; nays, none. B. REPORTS TO THE BOARD 1. President Salimpour asked if any Board Member made any expenditure to influence State legislative or administrative action to which their reply was negative. 2. Miscellaneous correspondence from money managers, consultants, etc. Received and Filed. 3. General Manager's Report a. Benefits Actions approved by General Manager on September 15, 2016

5 Page 5 Pursuant to Resolution 04008, adopted by the Board of Fire & Pension Commissioners on August 7, 2003, the following benefit actions have been approved by the General Manager on September 15, DISCONTINUED PENSIONS TIER 1 3 Oris D. Barkley Service Retired: Died: Martha M. Boydstun Widow Retired: Died: Joanne P. Helm Widow Retired: Died: DISCONTINUED PENSIONS TIER 2 13 Ryan Troy Bonar Fire Service Retired: Died: Robert D. Looney Fire Service Retired: Died: William G. Ritsch Fire Service Retired: Died: Robert T. Fishel Service Retired: Died: Arthur O. Haversat, Jr. Service Retired: Died: Raymond D. lnglin Service Retired: Died: Kenneth L. Pyper Service Retired: Died: William G. Sherriff Service Retired: Died: James L. Miller Fire Disability Retired: Died: Harry E. Peters Fire Disability Retired: Died: Jack M. Skovgard Disability Retired: Died: Margaret H. Cota Fire Widow Retired: Died: Patricia A. Loewe Fire Widow Retired: Died: DISCONTINUED PENSIONS TIER 5 1 Walter Berger Fire Service Retired: Died: DISCONTINUED PENSIONS FORMER SPOUSE TIER 2 1 Coletta Preacely Garcia Service Retired: Died: DISCONTINUED PENSIONS FORMER SPOUSE TIER 5 1 Dee Ann D. Schumacher Fire Service Retired: Member Died: ELIGIBLE SURVIVING SPOUSE'S PENSION TIER 1 1 Name Joanne P. Helm Deceased Member Laverne C. Helm Member's Class Disability Effective Date

6 Page 6 ELIGIBLE SURVIVING SPOUSE'S PENSION TIER 2 10 Name Deceased Member Member's Class Effective Date Iva K. Bonar Ryan Troy Bonar Fire Service Katherine J. Cadam James H. Cadam Fire Service Cleo M. Looney Robert D. Looney Fire Service Joan M. Souter Jere D. Souter Fire Service Thelma C. Williams Hollis B. Williams Fire Service Carole H. Dailey Billie J. Dailey Service Margaret Fisher Arthur Fisher Service Kristie L. Gaspar Jon H. Gaspar Service Senia B. Inglin Raymond D. Inglin Service Sheena R. Lawson Paul H. Lawson Service ELIGIBLE SURVIVING SPOUSE'S PENSION TIER 3 1 Name Deceased Member Member's Class Effective Date Corinne D. Lewis Roger M. Lewis Service ELIGIBLE SURVIVING SPOUSE'S PENSION TIER 5 1 Name Deceased Member Member's Class Effective Date Helga I. Berger Walter Berger Fire Service REACTIVATED SURVIVING SPOUSE'S PENSION TIER 1 1 Name Deceased Member Member's Class Effective Date Shirley J. Sweet Davis Robert J. Sweet Service Connected Death SURVIVOR BENEFIT PURCHASE PROGRAM TIER 5 1 Name Member's Class Effective Date Survivor Benefit % Mark P. Alberi Fire Service % SURVIVING CHILD'S PENSION TIER 5 1 Surviving child benefits are now payable to Tyler K. Stilson, surviving child of deceased Fire Captain II, Sean P. Stilson, effective August 1, 2016, due to the continuation of full-time student status. DECREASE SURVIVING SPOUSE'S PENSION TIER 5 1

7 Page 7 Decrease the pension payable to Deborah E. Kennedy-Stilson, surviving spouse of deceased Fire Captain Sean P. Stilson, due to the attainment of age 18 and full-time student status by Tyler K. Stilson, effective August 1, PARTIAL PAYMENT OF SURVIVING SPOUSE'S PENSION TIER 5 1 In accordance with the City Attorney's advice, a designated proportion of the community property interest of the Surviving Spouse Pension payable to Helga I. Berger, surviving spouse of deceased Fire Service Pensioner, Walter Berger, is to be paid to his former spouse, Dee Ann D. Schumacher, effective July 28, Ms. Schumacher will receive cost of living adjustments. MODIFIED PARTIAL PAYMENT OF PENSION TIER 2 1 In accordance with the City Attorney's advice, a designated proportion of the community property interest of the pension payable to Brian P. Hospodar, Service Pensioner, being withheld for his former spouse Sophia Van Surksum since June 30, 2016, should be released to Ms. Van Surksum effective September 1, Ms. Van Surksum will receive cost of living adjustments. MODIFIED PARTIAL PAYMENT OF PENSION TIER 5 1 In accordance with the City Attorney's advice, a designated proportion of the community property interest of the pension payable to Steven J. Tufts, Fire Service Pensioner, being withheld for his former spouse Carole A. Mollison since January 29, 2016, should be released to Ms. Mollison effective September 1, Ms. Mollison will receive cost of living adjustments. SERVICE PENSION TIER 5 1 Kevin A. Romine Detective II Eff: Years 0 Days SERVICE PENSION/DROP TIER 3 1 Monica M. Quijano Detective III Eff: Years 117 Days SERVICE PENSION/DROP TIER 4 2 Fire Robert D. Ashley Firefighter III Eff: Years 170 Days Marisela Sharrar Officer III Eff: Years 171 Days SERVICE PENSION/DROP TIER 5 6

8 Minutes of the Board of Fire and Page 8 Pension Commissioners Fire Jeffrey D. Dapper Battalion Chief Eff: Years 141 Days Peter 0. Gamino Lieutenant I Eff: Years 115 Days Marlin E. Hill Officer III Eff: Years 317 Days Ranald W. Holcombe Sergeant II Eff: Years 5 Days George C. Hoopes Sergeant II Eff: Years 296 Days Christopher J. Kunz Sergeant 1+2 Eff: Years 285 Days DISCONTINUE DROP TIER 3 2 Kathleen L. Hill Retired: Exit Close of: Terry Johns Retired: Exit Close of: DISCONTINUE DROP TIER 4 1 Kevin L. Stogsdill Retired: Exit Close of: DISCONTINUE DROP TIER 5 11 Fire Mark A. Carcamo Retired: Exit Close of: Robert A. Fogelman Retired: Exit Close of: Douglas S. McCleerey Retired: Exit Close of: Robert J. Aguilar Retired: Exit Close of: Phillip J. Bobo Retired: Exit Close of: Craig J. Brown Retired: Exit Close of: Federico Celis Retired: Exit Close of: Robert W. Harrell Retired: Exit Close of: Lydia Leos Retired: Exit Close of: Frank J. Schweitzer Retired: Exit Close of: Francisca K. Wheeling Retired: Exit Close of: MODIFIED PARTIAL PAYMENT OF DROP FUNDS TIER 2 1 In accordance with the City Attorney's advice, a designated proportion of the community property interest of the DROP funds payable to Brian P. Hospodar, Service Pensioner, being withheld for his former spouse Sophia Van Surksum since June 30, 2016 should be released to Ms. Van Surksum effective September 1, 2016.

9 Page 9 ELIGIBLE SURVIVING SPOUSE APPLICATION - TIER 5-1 Name Member's Rank Type % Rate Effective Date Christine D. Russell Detective II NSC w/o prejudice (Edmund J. Russell) 30% + 2 minor children b. Other business relating to Department operations General Manager Ciranna gave the following updates: 1. The Special Board meeting scheduled for October 12, 2016 has been canceled. 2. In reference to the ballot measure in November, the Department has requested The Segal Company to provide service purchase cost estimates for the Airport Safety Officers assigned to Ontario Airport and to invoice the City for the associated costs. 3. LAFPP received the Rich Chicotel award from the Pension Real Estate Association. C. CONSENT ITEMS 1. Approval of Minutes a. Minutes of the Regular Board meetings of January 7, 2016 and January 21, 2016 b. Minutes of the Special Board meetings of January 7, 2016 and January 21, Findings of Fact a. Joseph A. Armstrong - Tier 5 MOTION Commissioner von Voigt moved that the board approve the consent items, which was seconded by Commissioner Aliano and approved by the following vote: ayes, Commissioners Aliano, Babcock, Diannitto, Pendleton, Vega, von Voigt, and President Salimpour - 7; nays - none. D. CONSIDERATION OF FUTURE AGENDA ITEMS Commissioner Aliano would like to revisit the 7.5% assumed rate of return for pension valuation purposes. General Manager Ciranna stated that the item will be reviewed as part of the triennial Review of Economic Actuarial Assumptions (i.e., Experience Study), which is scheduled for June Commissioner Aliano stated that would suffice.

10 Page 10 E. GENERAL PUBLIC COMMENT ON MATTERS WITHIN THE BOARD'S JURISDICTION Ms. Elsa Moy provided public comment. President Salimpour recessed the meeting for a break at 9:43 a.m. and reconvened for closed session at 10:00 a.m. F. CLOSED SESSION ITEMS FOR POSSIBLE BOARD ACTION 1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1): BOARD REVIEW OF THE CITY ATTORNEY ANNUAL PERFORMANCE EVALUATION AND POSSIBLE BOARD ACTION The Board met in closed session. Upon reconvening in open session, President Salimpour stated there was no public report. The meeti g adjourned a 10:20 a.m. President