April 21, 2011 Minutes - Los Angeles Fire and Police Pensions

MINUTES
OF THE
BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
MEETING OF APRIL 21, 2011
The Board of Fire and Police Pension Commissioners ofthe City of Los Angeles met in Room 800, 360 East Second
Street, on Thursday, April 21, 2011.
COMMlSSIONERS PRESENT:
Dean Hansell, President
Robert von Voigt, Vice President
George Aliano
Sam Diannitto
Brenda Maull
Wayne Moore
Ruben Navarro
Raul Perez
Adlai Wertman
DEPARTMENT OF FIRE AND
POLICE PENSIONS:
Michael A. Perez, General Manager
William Raggio, Assistant General Manager
Laura Guglielmo, Assistant General Manager
Tom Lopez, Chief Investment Officer
Barbara Nobregas, Commission Executive Assistant
CITY ATTORNEY'S OFFICE:
Alan Manning, Assistant City Attorney
James Napier, Deputy City Attorney
COURT REPORTER:
Diane L. Panicca, U.S. Legal Support
President Hansell called the regular meeting to order at 9:05 a.m. All ofthe above-listed Commissioners were present
at the start of the meeting.
A.
ITEMS FOR BOARD ACTION
1. INTERNATlONAL EQUITY SEARCHES SCREENING CRITERIA AND POSSIBLE BOARD ACTION
Messrs. Jim Voytko, Chief Operating Officer and Michael Ford, CFA, Senior Consultant from RV Kuhns
presented the international equity search criteria report. Mr. Voytko gave an overview ofthe criteria targets,
objectives and characteristics that the Board should consider. Mr. Ford presented an overview of the
methodology in screening the applications. They answered the Board's questions and concerns.
Minutes of the Board of Fire and Police Pension Commissioners
April 21, 2011
Page 2
MOTION
Commissioner Wertman moved that the Board stay consistent with its Investment Policies on Emerging
Managers, Section 5.0 until the Board has time to review it, seconded by Commissioner Diannitto.
Commissioners Wertman and Diannitto later withdrew their motion.
Mr. Tom Lopez, ChiefInvestment Officer, Investments Division discussed the Board's Emerging Managers
Policy. President Hansell and Commissioner Wertman requested to review the Emerging Managers Policy at
a future date.
RESOLUTION 11091
Commissioner Diannitto moved that the Board approve the screening criteria as recommended by RV Kuhns
for the International Large Cap Growth Equity search, International Emerging Markets Equity search, and
International Small Cap Core Equity search, which was seconded by Commissioner Aliano and approved by
the following vote: ayes, Commissioners Aliano, Diannitto, Maull, von Voigt, Wertman, and President
Hansell- 6; nays, Commissioners Moore, Navarro, and Perez - 3.
RESOLUTION 11092
Commissioner Moore moved that the Board approve the screening criteria as recommended by RV Kuhns
for the International Emerging Managers search, which was seconded by Commissioner Aliano and
approved by the following vote: ayes, Commissioners Aliano, Maull, Moore, Navarro, Perez, and von Voigt
- 6; nays, Commissioners Diannitto, Wertman, and President Hansell- 3.
2. FEEDBACK AND DISCUSSION ON THE 2011 BOARD EDUCATIONAL RETREAT AND POSSIBLE
BOARD ACTION
Ms. Laura Guglielmo, Assistant General Manger gave the Board an overview of the recommendations and
feedback she received regarding the strengths and weaknesses of the Board retreat. She suggested that the
Board solicit Mr. Harvey Leiderman of Reed Smith to present a follow up on ethical decision making for the
Board. Ms. Guglielmo next discussed the 2012 Board retreat date and the possibility of cancelling it if the
department moves to another location. Ms. Guglielmo stated how staff will handle the future educational
needs of the Board and welcomed feedback on future educational topics. President Hansell suggested the
Board receive weekly business journals regarding the future of pension systems or a presentation to the
Board.
Item E was taken out oforder.
Minutes of the Board of Fire and Police Pension Commissioners
April 21,2011
Page 3
E.
CONSIDERATION OF FUTURE AGENDA ITEMS
No items were referred at this time.
The Board recognized Ms. Laura Guglielmo on her retirement and wished her well.
President Hansell indicated the Board was going into closed session for three separate items.
A.
3. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(l): BOARD REVIEW
OF THE CITY ATTORNEY ANNUAL PERFORMANCE EVALUATION AND POSSffiLE BOARD
ACTION
The Board met in closed session.
A.
4. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 TO CONFER WITH
REAL PROPERTY NEGOTIATOR; Properties: 1212 South Flower Street, 312 East 1st Street, 330 South
Alameda Street, 360 East Second Street; Negotiator: David Weiner and Martin Cawley (participating by
phone); Negotiating parties: Sentinel Real Estate Corporation; Under negotiation: Instruction to negotiator
will concern price
The Board met in closed session.
Commissioner Perez left the board room for the remainder ofthe meeting.
Deputy City Attorney James Napier took the City Attorney Chair at this time.
Item G was taken out oforder.
G.
DISABILITY CASES
DISABILITY CLAIM - NEW CLAIM - TIER 5 - 1
Rosa C. Mendez
(F)
Firefighter II (Terminated)
The Board met in closed session due to personnel matters pursuant to Government Code Section 54957.
Assistant City Attorney Alan Manning returned to the City Attorney Chair.
B. REPORTS TO THE BOARD
Minutes of the Board of Fire and Police Pension Commissioners
April 21, 2011
Page 4
1. Miscellaneous correspondence from money managers, consultants, etc. - Received and Filed.
2. QUARTERLY SUMMARY OF PRIVATE EQUITY COMMITMENTS - Received and Filed.
3. PROXY GUIDELINES UPDATE - Received and Filed.
4. Monthly Report
The Board discussed the assignment to staff, related to the vested benefit. Ms. Corina Lee, Vice President of
the Los Angeles Police Protective League, and Mr. Ken Buzzell, Director ofthe Los Angeles Retired Fire &
Police Association, Inc. made public comments on the issue.
RESOLUTION 11093
Commissioner Diannitto moved that the Board approve the removal of "the request for outside counsel
opinion regarding vesting of health benefits" assignment from the Status Report of Board Assignments to
Staff, which was seconded by Commissioner Aliano and approved by the following vote: ayes,
Commissioners Aliano, Diannitto, Maull, Moore, Perez, and von Voigt, Wertman, and President Hansell­
8; nays, Commissioner Navarro - 1.
5. General Manager's Report
a. Benefits Actions approved by General Manager on April 7, 2011
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.
DISCONTINUED PENSIONS - TIER 2 - 17
Mervel J. Dunham
Harold W. Greenwood
Robert C. Kramer
Fredrick E. Martin
Thurston Reiterman
Joseph C. Tuck
Wayne Williamson
Luther D. Mc Cormack
Robert M. Brewis
James H. Williamson
Robert M. Coleman
Fire Service
Fire Service
Fire Service
Fire Service
Fire Service
Fire Service
Fire Service
Police Service
Fire Disability
Fire Disability
Police Disability
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
03-01-72
06-26-77
06-27-78
08-02-07
12-24-76
07-16-70
02-06-71
01-05-86
01-20-00
10-07-87
08-03-74
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
03-01-11
01-19-11
02-11-11
02-16-11
02-17-11
02-23-11
02-20-11
11-25-10
03-19-11
02-17-11
02-22-11
Minutes of the Board of Fire and Police Pension Commissioners
April 21, 2011
Page 5
Raymond P. Herres
Mary L. Berteaux
Juanita M. Calvert
Betty A. Hayhoe
Margaret J. Kanthack
Mary A. Williams
Police Disability
Fire Widow
Police Widow
Police Widow
Police Widow
Police Widow
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
11-10-82
01-01-79
03-18-00
05-11-07
02-25-89
08-07-90
Died:
Died:
Died:
Died:
Died:
Died:
02-26-11
02-21-11
01-31-11
02-22-11
02-19-11
02-26-11
Retired:
Retired:
10-01-84
12-30-86
Died:
Died:
03-01-11
02-25-11
DISCONTINUED PENSIONS - TIER 3 - 2
Mervel J. Dunham
Walter Otte
Fire Service
Fire Disability
ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2 - 6
Name
Vivian M. Dunham
Irene Greenwood
Viola R. Martin
Clarice E. Tuck
Patricia A. Brewis
Patricia A. Herres
Deceased Member
Mervel J. Dunham
Harold W. Greenwood
Fredrick E. Martin
Joseph C. Tuck
Robert M. Brewis
Raymond P. Herres
Member's Class
Fire Service
Fire Service
Fire Service
Fire Service
Fire Disability
Police Disability
Effective Date
03-02-11
01-20-11
02-17-11
02-24-11
03-20-11
02-27-11
ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 3 - 2
Name
Vivian M. Dunham
Dolores M. Otte
Deceased Member
Mervel J. Dunham
Walter Otte
Member's Class
Fire Service
Fire Disability
Effective Date
03-02-11
02-26-11
ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 5 - 1
Name
Joy M. Hatfield
Deceased Member
Lester K. Vargas
Member's Class
Police Disability
Effective Date
02-07-11
SURVIVOR BENEFIT PURCHASE PROGRAM VESTED MEMBERS - TIER 2 - 2
Name
James D. Gicking
Sam F. Colella
Member's Class
Police Service
Police Disability
Effective Date
04-01-10
04-01-10
Vested Date
04-01-11
04-01-11
Survivor Benefit %
40 %
30 %
Minutes of the Board of Fire and Police Pension Commissioners
April 21, 2011
Page 6
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 Joy M. Hatfield, surviving spouse of Police Service Pensioner,
Lester K. Vargas, is to be paid to his former spouse, Virginia Vargas, effective February 7, 2011.
Ms. Vargas will receive cost of living adjustments.
SERVICE PENSIONIDROP - TIER 5 - 17
Fire
Tony R. Marino
Leo M. Marshall
Edward Riveros, Jr.
Fernando A. Sanchez
William J. Staples
Eric K. Stephens
Ruben Y. Terrazas
Timothy A. Wakefield
Michael L. White
Inspector I
Engineer
Apparatus Operator
Engineer
Firefighter III
Captain I
Firefighter III
Firefighter III
Captain I
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
02-01-11
02-14-11
03-01-11
02-27-11
03-01-11
02-27-11
03-01-11
03-02-11
02-28-11
33
25
30
25
30
25
31
30
34
Years
Years
Years
Years
Years
Years
Years
Years
Years
Police
Donald R. Christensen
Patrick M. McNamara
George S. Nagata
Sallyann S. Procaccini
Donald Schwartzer
Francine P. Spada
Eugene A. Tapia
Paul S. Williams
Detective III
Police Officer 11+6
Police Officer II
Sergeant I
Captain III
Sergeant II
Detective III
Sergeant I
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
01-04-11
02-01-11
02-01-11
03-01-11
03-01-11
03-01-11
02-01-11
03-01-11
30
25
30
25
30
26
30
26
Years
Years
Years
Years
Years
Years
Years
Years
o Days
5 Days
73
24
108
20
207
201
Days
Days
Days
Days
Days
Days
o Days
46 Days
191
29
72
185
357
Days
Days
Days
Days
Days
4 Days
317 Days
PENSION ADJUSTED - SURVIVING SPOUSE - TIER 5 - 1
Type: % Rate
Jeanne D. Urquiza
(Ralph D. Urquiza)
Firefighter III
FROM:
TO:
b. Other business relating to Department operations
Non-Service Connected:
40% + 2 minor
children
Service-Connected:
75% + 2 minor children
Effective
Date
09-21-09
Board
Date
10-15-09
09-21-09
11-04-10
Minutes of the Board of Fire and Police Pension Commissioners
April 21,2011
Page?
General Manager Perez gave the following update:
1. For the Board's information, members are provided the opportunity to evaluate their service with
LAFPP. General Manager Perez brought recent evaluations for the Board to review if they wish.
c. Marketing Cessation Information
C.
COMMlTTEE REPORTS
1. Benefits Committee
No updates were reported.
2. Governance Committee
President Hansell stated the Governance Committee met this morning and the results will be heard later.
3. Audit Committee
No updates were reported.
4. Ad Hoc Space Planning Committee
No updates were reported.
5. Ad Hoc Committee on City Attorney's Office
No updates were reported.
6. Ad Hoc Committee on Social Investing
No updates were reported.
D.
CONSENT ITEMS
1. QUARTERLY COMMISSIONERS' AND STAFF TRAVEL REPORT
Commissioner von Voigt moved that the Board approve the consent items, which was seconded by
Commissioner Diannitto and approved by the following vote: ayes, Commissioners Aliano, Diannitto, Maull,
Moore, Navarro, von Voigt, Wertman and President Hansell- 8; nays, none.
Minutes of the Board of Fire and Police Pension Commissioners
April 21, 2011
Page 8
F.
PUBLIC COMMENTS
Ms. Elsa Moy commented on the retreat cost for certain items, the return rate, and monthly totals.
The meeting was adjourned at 12:47 p.m.
President
Secretary