MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF DECEMBER 1, 2005

Transcription

1 MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF DECEMBER 1, 2005 The Board of Fire and Police Pension Commissioners of the City of Los Angeles met in Room 800,360 East Second Street, on Thursday, December 1,2005. COMMISSIONERS COMMISSIONERS PRESENT: ABSENT: Peggy Moore, President George V. Aliano, Vice President Elliott Broidy Michael Carter Sam Diannitto Sean Harrigan Don Keith Lou Moret None DEPARTMENT OF FIRE AND POLICE PENSIONS: Michael A. Perez, General Manager D. Edward Griffiths, Assistant General Manager Rhonda Peterson, Assistant General Manager Tom Lopez, Chief Investment Officer CITY ATTORNEY'S OFFICE: Alan Manning, Assistant City Attorney Mary Jo Curwen, Deputy City Attorney COURT REPORTER: Ms. Katy Jackson, Esquire Deposition Services President Moore called the regular meeting to order at 9:05 a.m. All of the above-listed Commissioners were present at the start of the meeting. NEW BUSINESS President Moore asked if any Board member made any expenditure to influence state legislative or administrative action to which their reply was negative.

2 Page 2 COMMUNICATIONS TO THE BOARD a. Miscellaneous correspondence from money managers, consultants, etc. - Received and filed. b. Inter-Departmental Correspondence dated November 17,2005 from City Controller re: Management Audit of the Fire and Police Pension System - Received and filed. c. Status report of Board assignments to staff - Received and filed. d. Board committee assignments - Received and filed. COMMITTEE REPORTS Benefits Committee Chair Aliano reported that this Committee did not meet. Planning and Governance Committee Chair Diannitto reported that this Committee did not meet. Ad Hoc Space Planning Committee Chair Carter reported that this Committee is scheduled to meet at ajoint meeting with LACERS on December 14, 2005 at 10:00 am to conduct interviews for a full service real estate consultant for the joint headquarters building. Ad Hoc Governance Committee Chair Harrigan reported that this Committee met on November 10 and 30, 2005 and completed review of the draft Governance Manual. Staff is in the process of editing the document and the Committee will meet early next year for a final review and to work on resolving several issues before making a recommendation to the Board. CITY ATTORNEY PRESENTATION ON CITY ORDINANCES REGARDING ETHICS AND NEW MAYOR'S DIRECTIVES City Attorney Alan Manning, Lonnie Eldridge, Public Integrity Division of the City Attorney's Office, and Lee Ann Pelham, Executive Director, and Rebecca Ronquillo, Management Analyst, of the Ethics Commission came before the Board and made a presentation on Ethics Commission

3 Page 3 policies, new municipal laws, conflicts of interest, Mayor's Executive Directive on Ethics in Government, commissioner restrictions, and administrative enforcement. The Board made several inquires and requests for clarification on specific situations encountered by individual commissioners. After discussion, President Moore instructed staff to prepare a written request to the Ethics Commission regarding potential conflicts with contact by Board members with contractors and directed that specific examples and as many facts as possible be included. President Moore also requested that the City Attorney research the requirement for the Board's monthly lobbying agenda item. BOARD APPROVAL OF CONTRACT WITH CORTEX APPLIED RESEARCH RESOLUTION NO Commissioner Harrigan moved that the Board: 1. Authorize a three-year contract with Cortex Applied Research Services for consultant services; and 2. Authorize the President of the Board, on behalf of the Board, to execute the contract, subject to the approval of the City Attorney as to form and legality; and 3. Authorize the transfer of $30,000 to cover the estimated costs for one year of services from the Unappropriated Balance Account 9500 to the Contractual Services Account 3040; which motion was seconded by Commissioner Diannitto and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Harrigan, Keith, Moret and President Moore - 8; nays, none. DISCUSSION ON ADDITION OF FIRMS TO BE CONSIDERED FOR HEDGE FUND OF FUNDS MANAGER INTERVIEWS AND POSSIBLE BOARD ACTION Commissioner Broidy recommended that the Board include Goldman Sachs, Dorchester and ElM Management with the firms being interviewed for Hedge Fund of Funds Manager. After discussion, it was determined that those firms were not included in the final list of eleven managers recommended by Pension Consulting Alliance (PCA) for interview. Therefore, Commissioner Broidy made the following motion:

4 December 1,2005 Meeting Page 4 MOTION Commissioner Broidy moved that the eleven firms listed on the recommendation by Pension Consulting Alliance dated September 12, 2005 be interviewed by the Board for Hedge Fund of Funds Manager Interviews, which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Harrigan, Keith, Moret and President Moore - 8; nays, none BOARD DIRECTION ON SEARCHES FOR 1) GENERAL CONSULTANT AND 2) PRIVATE EQUITY CONSULTANT MOTION Commissioner Harrigan moved that the Board 1. Instruct staff to expedite the RFP process to hire a General Investment Consultant and begin the process at a slower pace for hiring a Private Equity Alternative Investment Consultant; 2. When the General Investment Consultant is selected, determine if that consultant has the ability to act as a Private Equity Alternative Investment Consultant; if they cannot perform the dual function, staff will complete the RFP process for hiring a Private Equity Alternative Investment Consultant; which motion was seconded by Commissioner Diannitto and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Harrigan, Keith, Moret and President Moore - 8; nays, none. GENERAL MANAGER'S REPORT a. Pursuant to Resolution 04008, adopted by the Board of Fire & Police Pension Commissioners on August 7, 2003, the following benefit actions have been approved by the General Manager on November 17,2005. DISCONTINUED PENSIONS - TIER 1 Paul J. Duggins William V. Gorham J. C. Jenkins Altha L. Brandon Fire Disability Arthur L. Price Fire Disability Carol L. Weaver Police Widow

5 Page 5 DISCONTINUED PENSIONS - TIER 2 Curtis F. Holloway Dale C. Russmann Dade C. West Donald E. La Guardia George L. McGrew Eugene R. Markham David R. Penland Gilbert S. Revilla James F. Van Bibber William A. White Fire Service Fire Service Fire Service Fire Disability DISCONTINUED PENSIONS FORMER SPOUSE - TIER 2 Ann M. La Guardia Eff: Member SERVICE PENSIONS - TIER 2 Police Frank R. Lipus Detective II Eff: Years 1 Day SERVICE PENSIONS - TIER 5 Police Manuel Gonzales Police Officer III +1 Eff: Years 110 Days Dennis J. Lada Detective II Eff: Years 3 1 Days Cruz N. Lopez Police Officer II Eff: Years 18 Days ELIGIBLE GOINS' WIDOW'S PENSION - TIER 1 Name Deceased Member Member's Class Effective Date Dorothye Brandon Altha Brandon Fire Disability

6 Page 6 ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 1 Name Deceased Member Member's Class Effective Date Gloria O. Price Arthur L. Price Fire Disability Paul J. Duggins Mildred Duggins Marcia J. Jenkins J. C. Jenkins ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2 Name Deceased Member Member's Class Effective Date Avis R. Russmann Dorothy Holloway Helen Markham Gladys M. Van Bibber Carol L. White Dale C. Russmann Curtis F. Holloway Eugene R. Markham James F. Van Bibber William A. White Fire Service Fire Service Fire Disability PARTIAL PAYMENT OF PENSION - TIER 2 In accordance with the City attorney's advice, the designated proportion of the community property interest of the pension payable to Robert P. Stover, Fire Service Pensioner, that was being withheld for his former spouse Susan Stover is to be released retroactive to September 1, PARTIAL PAYMENT OF PENSION - TIER 5 In accordance with the City attorney's advice, a designated proportion of the community property interest of the pension payable to Terence L. Kibodeaux, Pensioner, is to be paid to his former spouse Maryanne L. Sullivan effective November 1, Ms. Sullivan is eligible to receive cost of living increases. GUARDIANSHIP - TIER 4 A certified copy of the letters of Guardianship, issued in the Los Angeles Superior Court, County of Los Angeles Case Number BP087810, appointing Sharon Eaton, Successor Guardian of the Person and Estate of Brittany S. Byrnes, surviving child of deceased Police Officer Paul C. Byrnes, Effective October 27,2005, has been filed with this office.

7 Page 7 SERVICE PENSION/DROP - TIER 2 Police John W. Fleming Detective II Eff: Years 6 Days Jesse A. James Sergeant I Eff: Years 10 Days Gregory R. Southern Officer III + 1 Eff: Years 172 Days SERVICE PENSION/DROP - TIER 5 Fire Robert E. Jackson Inspector I Eff: Years 148 Days Ronald D. Jackson Battalion Chief Eff: Years 159 Days Robert C. Klopfenstein Firefighter III Eff: Years 28 Days Terrance J. Manning Assistant Chief Eff: Years 161 Days Jeffrey J. Mills Captain I Eff: Years 56 Days Noel J. Murchet Firefighter III Eff: Years 289 Days Daniel E. Thompson Captain I Eff: Years 189 Days Leonard C. Thompson Battalion Chief Eff: Years 116 Days Robert E. Tolan Captain I Eff: Years 232 Days Police Salvador B. Apodaca Sergeant I Eff: Years 2 Days Jimmy R. Blum Sergeant II Eff: Years 186 Days Carolyn F. Flamenco Detective III Eff: Years 21 Days Steven Gomez, Sf. Sergeant II + 1 Eff: Years 89 Days William F. Justice Sergeant I + 2 Eff: Years 4 Days Richard K. Kanzaki Sergeant I Eff: Years o Days James Schaeffing, Jr. Officer III Eff: Years 2 Days Richard D. Talkington Detective II Eff: Years 3 Days

8 Page 8 DISCONTINUE DROP - TIER 5 Fire Daniel P. Jordan Donald G. Mc Lean Jr. Kenneth L. Moody Exit Close of: Exit Close of: Exit Close of: Police Michael T. Jensen Donne C. Provencio Exit Close of: Exit Close of: b. General Manager Perez informed the Board that Council confirmation of Steve Juarez as a new commissioner was scheduled for December 13,2005 and he may be available to attend the Board meeting on December 15,2005. General Manager Perez stated that the Segal Company was hired to review Gabriel, Roeder, Smith & Company (GRS) actuarial assumptions on DROP and Tier 5. He stated that the actuarial valuations by GRS and the analysis by the Segal Company will be placed on the December 15, 2005 agenda. General Manager Perez requested that the Board review and provide any input on the new Board report template used in this agenda's consent items travel request. He also informed the Board that beginning with the December 8 th meeting, new parking arrangements for Board members would be implemented and instructions would be provided for the Board. General Manager Perez reported that a general staff meeting for all employees was held on November 29, He also introduced three new employees: Neila Chavez, Relief Retirement Worker in the Accounting Section, Joni Chavez, Senior Clerk Typist joined the Investments Division, and George Saenz, Senior Clerk Typist, Retired Member Services. CONSIDERA TION OF FUTURE AGENDA ITEMS President Moore instructed staff to move the interviews scheduled for REIT manager on December 8, 2005 and Hedge Fund of Funds manager on January 5, 2006 to non-board days and devote the entire agenda to the interviews.

9 Page 9 CONSENT ITEMS a. Approval of Travel Travel Authority - National Association of Police Organizations (NAPO) - 18TH Annual Public Safety Pension & Benefits Seminar - January 22-25,2006, Las Vegas, Nevada Travel Authority - National Conference on Public Employee Retirement 2006 Legislative Conference - February 4-8,2006, Washington, DC b. Approval of Minutes Systems (NCPERS) Minutes of the Regular Board Meeting of November 3,2005 A motion to approve the Consent Items was made by Commissioner Diannitto, seconded by Commissioner Carter and approved by the following vote; ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Harrigan, Keith, Moret and President Moore - 8; nays, none. Mary Jo Curwen took the City Attorney chair at this time. DISABILITY PENSIONS DISABILITY CLAIM - DEPENDENT CHILD - TIER 1 Robert D. Gourley Brother of Michael J. Gourley Dependent Child of Gerald D. Gourley (P) Retired Commander (Deceased) As recommended by staff and concurred in by the applicant, Dependent Child status and benefits granted at 40% with a cost ofliving adjustment. Motion made by Commissioner Moret, seconded by Commissioner Harrigan and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Harrigan, Keith, Moret and President Moore - 8; nays, none. Mr. Gourley was not present nor was he represented.

10 December I, 2005 Meeting Page 10 DISABILITY CLAIM - SURVIVING SPOUSE - TIER 5 Janice A. Carver-Graf Surviving Spouse of Henry J. Graf (F) Fire Captain II (Deceased) Prior Board Action of April 7, 2005 granting a non-service connected surviving spouse pension at 55% is set aside and a service connected surviving spouse pension is granted at 75% with a cost of living adjustment and no foreseeable purpose for review. Motion made by Commissioner Diannitto, seconded by Commissioner Carter and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Harrigan, Keith, Moret and President Moore - 8; nays, none. Captain Deborah Brown, Medical Liaison, and Captain Howard Hockenberry, Fire Station 94, Los Angeles Fire Department, testified regarding Captain Graf. Mrs. Carver-Grafwas present and represented by Captain Kenneth E. Buzzell of the Los Angeles Fire Department. DISABILITY CLAIM - NEW - TIER 3 Rhonda A. LaBomme (P) Police Officer II Service connected disability pension granted at 30% with a disability rating of 20% and no foreseeable purpose for review. Motion made by Commissioner Aliano, seconded by Commissioner Carter and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto and Harrigan, - 5; nays, Commissioners Keith, Moret and President Moore - 3. Lieutenant Lance Smith, Medical Liaison, Los Angeles Police Department, testified regarding Officer LaBomme. Officer LaBomme was present and represented by her attorney, Thomas J. Wicke. DISABILITY CLAIM - NEW - TIER 5 Bernard E. Funck (P) Police Officer II Service connected disability pension granted at 55% with a cost of living adjustment and no foreseeable purpose for review. Motion made by Commissioner Carter, seconded by Commissioner Diannitto and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Harrigan, Keith, Moret and President Moore - 8; nays, none. Lieutenant Lance Smith, Medical Liaison, Los Angeles Police Department, testified regarding Officer Funck. Officer Funck was present and represented by his attorney, Matthew M. Davis. PUBLIC COMMENTS Elsa Moy came before the Board and made a comment regarding hedge funds.

11 Page 11 The meeting was adjourned at 12:10 p.m. /! I J ~j'