minutes of the board of fire and police pension commissioners

MINUTES
OF THE
BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
MEETING OF AUGUST 18, 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, August 18,2005.
COMMISSIONERS
PRESENT:
George V. Aliano, Vice President
Elliott Broidy
Sam Diannitto (via teleconference)
Michael Carter
William H. Jackson
Don Keith
Lou Moret
COMMISSIONERS
ABSENT:
Peggy Moore, President
DEPARTMENT OF FIRE AND
POLICE PENSIONS:
CITY ATTORNEY'S
COURT REPORTER:
OFFICE:
Michael A. Perez, General Manager
D. Edward Griffiths, Asst. General Manager
Rhonda Peterson, Asst. General Manager
Tom Lopez, Chief Investment Officer
Alan Manning, Assistant City Attorney
John Blair, Deputy City Attorney
Esquire Deposition Services
Ms. Pamela A. Stitt
President Pro Tern Aliano chaired this meeting. He informed the Board and the public that
Commissioner Sam Diannitto would be joining the Board telephonically from Los Angeles,
California. His location had been agendized and his participation is in compliance with the Brown
Act. President Pro Tern Aliano called the regular meeting to order at 9: 12 a.m.
All of the above-listed Commissioners were present at the start of the meeting.
COMMUNICA nONS
TO THE BOARD
a. Miscellaneous correspondence from money managers, consultants, etc., received and filed.
Minutes of the Board of Fire and Police Pension Commissioners
August 18, 2005 Meeting
Page 2
b. Monthly Report, received and filed.
COMMITTEE REPORTS
Benefits Committee
This Committee did not meet.
Investments Committee
Chair Moret reported that the Committee is scheduled to meet on September 1,2005.
Planning and Governance Committee
Chair Diannitto reported that the Committee is not scheduled to meet.
Ad Hoc Space Planning Committee
Chair Carter reported that a Committee meeting is scheduled for September 8, 2005, and ajoint
meeting with LACERS Committee is targeted for September 15, 2005 to review a short list of
realtor consultants.
Ad Hoc Governance Committee
Chair Jackson stated that they are waiting for Cortex to present the final draft report on Board
policy before scheduling a Committee meeting.
STATUS OF THE PROPOSED PURCHASE OF THE LANDMARK PROPERTY
Received and filed.
CREDITING OF INTEREST TO ACTIVE MEMBER CONTRIBUTION ACCOUNTS AS OF
JUNE 30, 2005
RESOLUTION NO. 06017
President Pro Tern Aliano moved that the Board adopt the interest rate of 1.59% and direct the
General Manager to credit interest to active member contribution accounts as of June 30, 2005, which
motion was seconded by Commissioner Jackson and approved by the following vote: ayes,
Commissioners Broidy, Carter, Diannitto, Jackson, Keith, Moret and President Pro Tern Aliano - 7;
nays, none.
Minutes of the Board of Fire and Police Pension Commissioners
August 18, 2005 Meeting
Page 3
REQUEST TO RETURN A GIFT OF DONA TED STOCK
In order to clarify the issue of the Board's acceptance of gifts of donated stock, the Board directed
staff to prepare a statement, if needed with a synopsis of what has transpired, including indemnities
received, legal advice obtained, process followed, and due diligence performed.
RESOLUTION NO. 06018
Commissioner Jackson moved that the Board return the gift of donated stock to Greg Blackwell
Homes, and that staff obtain a signed agreement with return of gift regarding indemnities, including
legal fees, if any, and that this process be used as a model for all future returns of donated stock,
which motion was seconded by Commissioner Moret and approved by the following vote: ayes,
Commissioners Broidy, Carter, Diannitto, Jackson, Keith, Moret and President Pro Tern Aliano -7;
nays, none.
APPROVAL OF AN INVESTMENT IN QUADRANGLE CAPITAL PARTNERS II, L.P. BY
PENSION CONSULTING ALLIANCE IN THE AMOUNT OF $10 MILLION
Commissioner Jackson recused himself from participation and left the meeting room.
Allan Emkin, Consultant, Pension Consulting Alliance (PCA), made a presentation on the
Quadrangle Capital Partners II, L.P. fund.
RESOLUTION NO. 06019
Commissioner Moret moved that the Board approve Pension Consulting Alliance's recommendation
to invest in Quadrangle Capital Partners II, L.P. in the amount of $10 million, which motion was
seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Broidy,
Carter, Diannitto, Keith, Moret and President Pro Tern Aliano - 6; nays, none.
Commissioner Jackson rejoined the meeting at this time.
REVIEW OF ALTERNATIVE INVESTMENTS ADVISORS' CONTRACTS
Due to a possible conflict, Commissioner Broidy hadfiled a Recusal Notification Form on this item
on July 11, 2005, and in accordance with that recusal, Commissioner Broidy left the meeting room
prior to consideration of this item.
Tom Lopez was present and provided background information on the contract renewal of both Abbott
Capital Management and Hamilton Lane Advisors and review of all four Alternative Investment
Advisors by Consulting Services Group (CSG). After discussion and input by Board members
Minutes of the Board of Fire and Police Pension Commissioners
August 18, 2005 Meeting
Page 4
regarding the type of consultant review to be conducted by CSG, Commissioner Jackson requested
that Allan Emkin, Consultant from Pension Consulting Alliance, give his opinion on what direction
the Board should take. Mr. Emkin stated that the Board should adopt a master plan with central
oversight, which does not currently exist. He suggested that CSG review the Board policies in place
and request that they provide recommendations to the Board on the best way to go forward and give
the Board choices as policy makers. Once the Board adopts a policy they can proceed with
implementation.
RESOLUTION NO. 06020
Commissioner Jackson moved that staff:
a. Enter into a contract with Abbott Capital Management for a $20,000 monthly fee to continue
contract on a monthly basis, and make the same offer to Hamilton Lane Advisors with a
proportional monthly fee amount up to $20,000;
b. Negotiate and complete a contract with Consulting Services Group and set a 30-day due date
(from 8/18/05) to perform due diligence on the four alternative investment consultants; review
current Board policy on alternative investments; determine how investments were made and
whether or not Board policy was followed; determine where we are and what we have;
c. Provide recommendations to Board on what changes should be made on investments going
forward; and
d. After the Consulting Services Group report is presented to Board, set deadline for Board to
take action within 30 days;
which motion was seconded by Commissioner Moret and approved by the following vote: ayes,
Commissioners Carter, Diannitto, Keith, Jackson, Moret and President Pro Tern Aliano - 6; nays,
none.
Commissioner Broidy rejoined the meeting at this time.
GENERAL MANAGER'S
REPORT
a. Benefits actions approved by General Manager on August 4, 2005
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 August 18, 2005.
Minutes of the Board of Fire and Police Pension Commissioners
August 18,2005 Meeting
Page 5
DISCONTINUED PENSIONS - TIER 1
William R. Clay
E. E. Campbell
Alberta H. McCormick
Viola N. Morse
Zelia R. Ogden
Clara C. Sweet
Police Service
Police Disability
Fire Widow
Fire Widow
Police Widow
Police Widow
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
03-01-66
01-24-50
08-26-01
07-03-84
01-03-93
02-01-55
Died:
Died:
Died:
Died:
Died:
Died:
07-20-05
07-28-05
07-17-05
07-13-05
07-10-05
07-08-05
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
01-28-91
06-30-79
07 -06-86
06-01-75
06-01-72
08-22-95
08-02-84
01-10-92
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
07-06-05
07-19-05
07-14-05
07-24-05
07-23-05
07-17-05
07-27-05
07-27-05
08-07-05
08-07-05
08-07-05
27 Years
22 Years
20 Years
DISCONTINUED PENSIONS - TIER 2
Patrick C. McKillip
Marvin E. Thomas
James K. Allen
Garvyn E. Reese
Mary L. Castle
Anna M. Weber
Vera S. Humphrey
Virginia M. Ricks
Fire Service
Fire Service
Police Service
Police Service
Police Service
Fire Widow
Police Widow
Police Widow
SERVICE PENSIONS - TIER 5
Police
Robert G. Dietz
Daniel L. Johnson
Harvey G. Surrena
Sergeant II
Police Officer II+6H
Sergeant I
Eff:
Eff:
Eff:
142 Days
333 Days
6 Days
ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 1
Name
Deceased Member
Member's Class
Effective Date
O. Elizabeth Gordon
Forrest L. Gordon
Fire Disability
06-22-05
Minutes of the Board of Fire and Police Pension Commissioners
August 18,2005 Meeting
Page 6
ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2
Name
Deceased Member
Member's Class
Effecti ve Date
Lorene J. Thomas
Arlene R. Allen
Marvin E. Thomas
James K. Allen
Fire Service
Police Service
07-20-05
07-15-05
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 Michael Elefante, Fire Service Pensioner, is to be
paid to his former spouse Patricia L. Elefante effective August 1,2005. Ms. Elefante is eligible
to receive cost of living increases.
In accordance with the City Attorney's advice, a designated proportion of the community
property interest of the pension payable to Richard W. Hodgson, Fire Service Pensioner, is to
be paid to his former spouse Kathryn J. Weiner effective August 7, 2005. Ms. Weiner will
receive cost of living increases.
In accordance with the City Attorney's advice, a designated proportion of the community
property interest of the pension payable to John C. Metcalf, Police Service Pensioner, is to be
paid to his former spouse Gail R. Metcalf effective July 10, 2005. Ms. Metcalf will receive
cost of living increases.
In accordance with the City Attorney's advice, a designated proportion of the community
property interest of the pension payable to John C. Metcalf, Police Service Pensioner, is to be
paid to his former spouse Wendy J. Krueger (Metcalf) effective July 10,2005. Ms. Krueger
will receive cost of living increases.
DISCONTINUE SURVIVING CHILD PENSION - TIER 3
Discontinue the pension payable to Melissa N. Koppenhaver surviving child of deceased Police
Pensioner Greg P. Koppenhaver, effective May 1, 2005 due to the completion of full-time
student status.
INCREASE SURVIVING CHILD PENSION - TIER 3
Increase the pension payable to Michael E. Koppenhaver, Surviving Child of deceased Police
Pensioner Greg P. Koppenhaver due to the discontinued pension of Melissa N. Koppenhaver
on May 1,2005.
Minutes of the Board of Fire and Police Pension Commissioners
August 18, 2005 Meeting
Page 7
SERVICE PENSION/DROP - TIER 2
Police
Victor M. Corella
Carlos R. Flores
Glenn J. Krejci
Douglas E. Shur
Detective II
Officer III
Lieutenant II
Captain I
Eff:
Eff:
Eff:
Eff:
08-07 -05
07-10-05
07-10-05
07-10-05
25
25
27
27
Years
Years
Years
Years
163 Days
121 Days
91 Days
139 Days
Eff:
Eff:
Eff:
07-06-05
08-07 -05
06-01-05
28 Years
26 Years
28 Years
30 Days
60 Days
163 Days
SERVICE PENSION/DROP - TIER 5
Police
Kevin M. Kurzhals Sergeant II
Angelo S. Morton Police Officer III
Robert M. Rooney Lieutenant I
DISCONTINUE DROP - TIER 5
Fire
Richard W. Hodgson, Jr.
Retired:
08-01-02
Exit Close of:
08-06-05
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
12-01-02
05-05-02
10-05-03
08-11-02
09-07-03
08-24-03
12-01-03
05-05-02
07-01-02
03-01-03
05-05-02
08-01-03
Exit
Exit
Exit
Exit
Exit
Exit
Exit
Exit
Exit
Exit
Exit
Exit
08-20-05
08-20-05
07-04-05
08-20-05
08-20-05
08-20-05
08-06-05
08-06-05
08-06-05
08-20-05
08-20-05
08-20-05
Police
Clyde E. Conly
Michael D. Ewing
Judith L. Haiser
John F. Luther
Stanley A. Lemelle
Gary A. Meisner
Allan P. Michelena
Michael C. Peterson
Salvatore Piscopo
Eva J. Sanders (Logan)
David Ybarra
Henry J. Zalba
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
of:
of:
of:
of:
of:
of:
of:
of:
of:
of:
of:
of:
Minutes of the Board of Fire and Police Pension Commissioners
August 18, 2005 Meeting
Page 8
b.
Other business relating to Department operations.
General Manager Perez reported that staff is in the process of reviewing draft Board policies by
Cortex and that updates will be made through Board action. Chief Investment Officer Lopez will
make a report on investments at the September 8, 2005 meeting. General Manager Perez reported that
he is holding meetings with staff on the Department's reorganization. He also informed the Board
that staff is researching the purchase of new audio recording and upgraded teleconferencing
equipment for the Boardroom and costs will be shared with LACERS. He notified the Board that his
confirmation for the General Manager position will be at Council in early September 2005.
CONSIDERATION
OF FUTURE AGENDA ITEMS
Commissioner Keith stated that due to a disability case that took three years to complete, he is
requesting that at future Board meetings under the General Manager's Report, staff include as part of
the Monthly Report/Disability Claims Processing, a list of disability cases by date of filing application
with an explanation on those with significant delays. He would also like an explanation on any cases
that have a high volume of contacts with staff. Commissioner Carter stated that the case in question
was a unique situation and that, overall, staff does an excellent job in processing disability cases.
Commissioner Jackson stated that in order for an intelligent discussion to take place and improve this
procedure for our members, this item should be placed on a future agenda. At the suggestion of
Commissioner Jackson, the Board instructed staff to prepare a report summarizing the Alt 1 and Alt 2
disability process, what percentages get filed as Alt 1 or Alt 2 cases, and include the information
requested by Commissioner Keith that lists the number of active cases by application filing date with
an explanation of any cases that have significant delays.
PUBLIC COMMENTS
There were none.
CONSENT ITEMS
a.
Approval of Travel
9th annual Plan Sponsor & Pension Consultants' Circle, October 24-26,2005, HalfMoon Bay,
California
Alternative Investing, November 6-9, 2005, Laguna Beach, California
Minutes of the Board of Fire and Police Pension Commissioners
August 18, 2005 Meeting
Page 9
b.
Approval of Minutes
Approval of Minutes for Regular Board Meetings of June 16,2005 and July 7,2005
Approval of Minutes for Special Board Meeting of July 7, 2005
c.
Findings of Fact - Tier 3
1. Stephen L. Morris
2.
Sachiko O. Devito
3.
Jerald R. Morin
A motion to approve the Consent Items was made by Commissioner Carter, seconded by
Commissioner Jackson and approved by the following vote; ayes, Commissioners Broidy, Carter,
Diannitto, Keith, Jackson, Moret and President Pro Tern Aliano -7; nays, none.
Deputy City Attorney John Blair took the City Attorney chair at this time.
DISABILITY PENSIONS
DISABLILITY CLAIM - SURVIVING SPOUSE - NEW - TIER 5
Kathrine Falco
Surviving Spouse of
Timothy M. Falco
(P)
Police Officer III + I (Deceased)
Prior Board Action of January 2,2004 granting a non-service connected surviving spouse pension is
set aside and a service connected surviving spouse pension is granted at 75% with minor child
benefits and a cost of living adjustment. Motion made by Commissioner Moret, seconded by
Commissioner Carter and adopted by the following vote: ayes, Commissioners Broidy, Carter,
Diannitto, Jackson, Keith, Moret and President Pro Tern Aliano - 7; nays, none. Mrs. Falco was
present and represented by her attorney, Thomas J. Wicke.
Commissioner Moret left the boardroom for the day.
DISABILITY CLAIM - NEW - TIER 4
Wayne A. Devey
(P)
Police Officer III
Service connected disability pension granted at 36% 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 Broidy, Carter, Diannitto,
Minutes of the Board of Fire and Police Pension Commissioners
August 18, 2005 Meeting
Page 10
Jackson, Keith and President Pro Tern Aliano - 6; nays, none. Sergeant Tom Todaro, Medical
Liaison, Los Angeles Police Department, testified regarding Officer Devey. Officer Devey was
present and was represented by his attorney Thomas J. Wicke.
Commissioner Carter left the boardroom for the day.
Alicia Wolin
(P)
Detective III
Service connected disability pension granted at 75% with a cost of living adjustment and no
foreseeable purpose for review. Motion made by Commissioner Broidy, seconded by Commissioner
Jackson and adopted by the following vote: ayes, Commissioners Broidy, Diannitto, Jackson, Keith,
and President Pro Tern Aliano - 5; nays, none. Sergeant Tom Todaro, Medical Liaison, Los Angeles
Police Department, Dr. Michael Shapiro and Dr. Jeffrey Galpin testified regarding Detective Wolin.
Detective Wolin was present and represented by her attorney, Steven M. Barry.
DISABILITY CLAIM - NEW - TIER 3
Stephanie Sutherland
(P)
Police Officer III
Denied. Motion made by President Pro Tern Aliano, seconded by Commissioner Diannitto and
adopted by the following vote: ayes, Commissioners Broidy, Diannitto, Jackson, Keith and President
Pro Tern Aliano - 5; nays, none. Sergeant Tom Todaro, Medical Liaison, Los Angeles Police
Department, testified regarding Officer Sutherland. Officer Sutherland was present and represented by
her attorney, Tanya Garza.
as adjourned at 1:55 p.m.
President