of the€¦ · · 2015-04-02minutes of the board of fire and police pension commissioners...

MINUTES

OF THE

BOARD OF FIRE AND POLICE PENSION COMMISSIONERS

MEETING OF DECEMBER 6, 2007

The Board of Fire and Police Pension Commissioners of the City ofLas Angeles met in Room 800, 360 East Second Street, on Thursday, December 6, 2007.

COMMISSIONERS PRESENT: Sean Harrigan, President Mike Carter, Vice President George V. Aliano Elliott Broidy Sam Diannitto Steve Juarez Don Keith Patricia Means Louis Moret

DEPARTMENT OF FIRE AND Michael A. Perez, General Manager POLICE PENSIONS: D. Edward Griffiths, Assistant General Manager

Laura Guglielmo, Assistant General Manager Tom Lopez, Chief Investment Officer Isabel Rosas, Commission Executive Assistant

CITY ATTORNEY'S OFFICE: Alan Manning, Assistant City Attorney

COURT REPORTER: Diane 1. Panicca, U.S. Legal Support

President Harrigan called the regular meeting to order at 9:07 a.m. All of the above-listed Commissioners were present at the start of the meeting.

1. NEW BUSINESS

President Harrigan asked if any Board Member made any expenditure to influence State legislative or administrative action to which their reply was negative.

2. COMMUNICATIONS TO THE BOARD

A. Miscellaneous correspondence from money managers, consultants, etc. - Received and Filed

Minutes of the Board of Fire and Police Pension Commissioners December 6, 2007

3. COMMITTEE REPORTS

A. Benefits Committee

Chair Aliano reported no meeting scheduled. He and General Manager Perez will meet with Council member Gruel regarding the remarriage issue in January.

B. Governance Committee

Chair Diannitto reported that the General Manager's performance review is on-line for commissioners to complete. General Manager Perez noted a Committee meeting is scheduled next week and all the surveys are complete. The issue will be discussed at the Committee and Board level next week.

C. Ad Hoc Space Planning Committee

Chair Carter reported a meeting is scheduled next Tuesday with Cushman & Wakefield. Ms. Laura Guglielmo, Assistant General Manager, Administrative Operations Division stated they have contacted Cushman & Wakefield several times but they have not responded. The meeting will be held in conjunction with LACERS' Board meeting. Commissioner Carter asked staff to determine the Board's options with Cushman & Wakefield and the MOU with LACERS at the January 10th meeting. President Harrigan stated to proceed with the meeting without Cushman & Wakefield to determine the relationship with Cushman & Wakefield, the MOD with LACERS and express the Board's concerns.

D. Audit Committee

Chair Means reported the Audit Committee met this previously and moved to approve the Audited Financial Statements.

4. BOARD CONSIDERATION AND POSSIBLE ADOPTION OF THE AUDITED FINANCIAL STATEMENTS OF THE SYSTEM FOR THE ONE YEAR PERIOD ENDING JUNE 30, 2007

RESOLUTION 08065

Commissioner Means moved to approve the recommendations of the Audit Committee to adopt the audited financial statements of the System completed by the external auditor, Simpson & Simpson, Certified Public Accountants, for the one year period ending June 30, 2007, which motion was seconded by Commissioner Moret and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Juarez, Keith, Means, Moret and President Harrigan - 9; nays, none.

Item 8 was taken out oforder.


8. STATUS UPDATE BY PCA OF ENHANCED INDEX MANAGER SEARCHES

Mr. Allan Emkin, Managing Director, Pension Consulting Alliance gave an update regarding the methodology used in the enhanced index search. He explained the search process and answered the Board's questions.

5. PRESENTATION BY ALDUS EQUITY ~ PROPOSED FUND APPROVAL PROCESS

Messrs. Thomas Henley and Saul Meyer, Partners from Aldus Equity discussed the approval process of proposed private equity funds and answered the Board's questions. They also explained how they coordinate private equity funds between Aldus and Stepstone.

6. PRESENTATION BY STEPSTONE GROUP - LAFPP SPECIALIZED PROGRAM PARAMETERS

Messrs, Monte Brem, ChiefExecutive Officer; Jose Fernandez, Managing Director; Jamie Guzman, Managing Director; and Tom Keck, Chief Investment Officer from Stepstone gave an update regarding their firm, the portfolio plan, and the activity report, Mr, Brem stated they collaborated with Aldus Equity to put a plan into process. President Harrigan asked that representatives from Aldus, Stepstone, PCA and staffhave a dialogue about having more flexibility between the Aldus and Stepstone allocations, He also asked that a joint recommendation be presented to the Board at the next meeting.

7. APPROVAL OF RECOMMENDATIONS BY ALDUS EQUITY - FUNDING FOR APOLLO INVESTMENT FUND VII, L.P" & ARES DISTRESSED SECURITIES FUND, L.P,

Messrs. Thomas Henley and Saul Meyer, Partners from Aldus Equity presented the Apollo Fund and Ares Fund.

RESOLUTION 08066

Commissioner Carter moved that the Board approve the Aldus Equity recommendation to invest $40 million in Apollo Investment Fund VII, L.P, (Apollo VII), which motion was seconded by Commissioner Moret and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Juarez, Keith, Means, Moret and President Harrigan - 9; nays, none.

RESOLUTION 08067

Commissioner Aliano moved that the Board approve the Aldus Equity recommendation to invest $35 million in Ares Distressed Securities Fund, L.P, (Ares Distressed), which motion was seconded by Commissioner Moret and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannino, Juarez, Keith, Means, Moret and President Harrigan - 9; nays, none,


9. STATUS REPORT ON THE DISCRETIONARY COST OF LIVING ADJUSTMENT RECOMMENDADON TO CITY COUNCIL

The board report was received and filed.

10. REPORT ON DUAL CITY-SUBSIDIZED MEDICAL AND DENTAL BENEFITS

General Manager Perez reported that the City Administrative Code requires that the City not provide more of a subsidy than stated in the Administrative Code. He noted that staffworked so that members are not receiving a dual subsidy. The anticipated savings to the Fund is approximately $60,000.00 annually. Mr. Gregory Mack, Senior Management Analyst II, Medical and Dental Benefits reported that certain members are listed as the primary on both health plans and receiving dual subsidies from more than one of the City Systems. The report was received and filed.

Items 13 - /6 were taken out oforder.

13. GENERAL MANAGER'S REPORT

A. Benefits actions approved by General Manager on November 15,2007

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 November 15,2007.

DISCONTINUED PENSIONS - TIER 1 - 3

Bernard Blackwell Police Service Retired: 08-01-61 Died: 09-15-07 Helen B. Rosenberg Fire Widow Retired: 02-26-02 Died: 10-24-07 Lesl B. Jackson Police Widow Retired: 05-14-84 Died: 09-21-06

DISCONTINUED PENSIONS - TIER 2 - 7

James E. Lemon Fire Service Retired: 08-20-72 Died: 09-13-07 Lawrence D. O'Hanlon Fire Service Retired: 06-01-80 Died: 10-22-07 Steven Takach Fire Service Retired: 04-01-77 Died: 10-02-07 David E. Frazier Police Service Retired: 06-03-90 Died: 10-01-07 Joaquin Leon Police Service Retired: 05-01-71 Died: 10-19-07 Robert 1. Peterson Police Service Retired: 03-01-68 Died: 09-11-07 Marjorie F. Allnutt Fire Widow Retired: 02-01-70 Died: 10-13-07

DISCONTINUED PENSIONS - FORMER SPOUSE - TIER 2 - 1

Regina A. Legoski Police Service Retired: 06-03-90 Member Died: 10-01-07


DEFERRED PENSION CORRECTED FROM SERVICE PENSION - POLICE - TIER 5 - 1

Deborah L. Miller Police Officer III Eff: 09-30-07 24 Years 48 Days

ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2 - 2

Name Deceased Member Member's Class Effective Date

Anselma S. Lemon James E, Lemon Fire Service 09-14-07 Joan G. Peterson Robert L. Peterson Police Service 09-12-07

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 Alfred D. Harvey, Jr., Police Service Pensioner, is to be withheld for his spouse Loretta M. Harvey effective November 1,2007. Mrs. Harvey will receive cost ofliving increases, This is a legal separation.

PARTIAL PAYMENT OF PENSION TIER 5 - 2

In accordance with the City Attorney's advice, a designated proportion of the community property interest of the pension payable to Teresa A Lincoln Police Service-Connected Disability Pensioner, is to be paid to her fonner spouse William R. McIntosh effective February 24, 2007. Mr. McIntosh 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 Douglas A. Workman, Police Service Pensioner, is to be withheld for his fanner spouse Denise M. Lamarand effective November 1,2007. Ms. Lamarand will receive cost of living increases.

DISCONTINUE DROP - TIER 2 - 1

Police

Charles F. Duke Retired: 12-01-02 Exit Close of: 11/30107

DISCONTlNUE DROP - TIER 5 - 10

Fire

Joseph D, Flores Retired: 12-01-02 Exit Close of: 11-30-07 Arturo R, Jacinto Retired: 12-01-02 Exit Close of: 11-24-07 Steven W. Montiel Retired: 08-01-03 Exit Close of: 11-10-07 Robert E. Tolan Retired: 06-26-05 Exit Close of: 11-17-07 Gilbert 1. Trejo Retired: 12-01-02 Exit Close of: 11-30-07


Ricardo Bustamante Retired: 12-01-02 Exit Close of: 11-30-07 William R. Douglass Retired: 12-01-02 Exit Close of: 11-30-07 Thomas E. McAvay Retired: 06-01-03 Exit Close of: 10-31-07 Patrick D, Terry Retired: 12-01-02 Exit Ctose of: 11-30-07 Douglas A. Workman Retired: 11-03-02 Exit Close of: 10-31-07

B, Other business relating to Department operations

General Manager Perez gave the following updates:

1. He introduced a new employee, Mr. Derek Niu, Mr. Niu previously worked at Countrywide and CALAPRS and is a Chartered Financial Analyst.

2. He received the City Audit completed by Independent Fiduciary Services. He received a letter from the Mayor asking us to work with CAO and LACERS, to provide a report within 90 days regarding the feasibility of two recommendations, One, dealing with the Board to hire its own counsel. The other is to combine the investment programs and assets ofLAFPP, LACERS and possibility DWP and to review all the other recommendations in the Audit. General Manager Perez will work closely with the Board and the Audit Committee and report to the Board as necessary.

3. The Auditors found a discrepancy on the Actuary Valuation. The valuation information that Segal presented indicated the effective date for the dental subsidy as January 1st. The Auditors correctly identified the date as July 1st. There is a difference in the valuation for the actuaries. The Auditors opined that this is not material. This will result in a slightly higher contribution by the City to the Fund,

4, Mr. Alan Manning, Assistant City Attorney reported that the California Supreme Court granted a review of the Sacramento 1090 case, He noted it was good news and provided a timeline of events.

14. CONSIDERATION OF FUTURE AGENDA ITEMS

Commissioner Moret referred Page Mill, a real estate fund for review.

15. PUBLIC COMMENTS

Ms. Elsa Moy made a public comment regarding the enhanced index manager,


16. CONSENT ITEMS

APPROVAL OF RETROACTIVE TRAVEL AUTHORITY - SECOND ANNUAL PRIVATE EQUITY FlJND-OF-FUNDS SUMMIT - NOVEMBER 26-28, 2007, BOSTON, MA

RESOLUTION 08068

Commissioner Diannitto moved that the Board retroactively approve attendance at the Second Annual Private Equity Fund-of-Funds Summit for Commissioner Juarez from November 26-28,2007, in Boston, MA, which motion was seconded by Commissioner Aliano and approved by the following. vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Juarez, Keith, Means, Moret and President Harrigan - 9; nays, none.

11. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9: CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION NAME OF CASE: DR. JOHN C. SHIH, ET AL. V. LEE GODDARD & DUFFY. LLP, ET AL.. LOS ANGELES SUPERIOR COURT CASE NO. BC 359795

Upon reconvening the meeting in public session, President Harrigan stated that the Board met in closed session with the City Attorney and received advice regarding the litigation case.

12. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9: TO CONFER WITH LEGAL COUNSEL REGARDING POTENTIAL LITIGATION INVOLVING NETWORK TELEPHONE SERVICES, INC., JOSEPH PRESTON AND GARY PASSON

Upon reconvening the meeting in public session, President Harrigan stated that the Board met in closed session with the City Attorney and received advice regarding the litigation case.

17. DISABILITY CASES

DISABILITY CLAIM - DEPENDENT CHILD - TIER 3 - 1

Carl E. Munson (P) Sergeant I Dependent Child of Melissa J. Munson

As recommended by staff and conculTed in by the applicant, Dependent Child status and benefits are granted. Motion made by Commissioner Means, seconded by Commissioner Diannitto and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Juarez, Keith, Means, Moret and President Harrigan - 9; nays, none. Mr. Munson was not present nor was his attorney, Alan Snitzer.


DISABILITY CLAIM - NEW· ... TIER 2 - 1

Michael K. McOsker (F) Fire Engineer

As recommended by staff and concurred in by the applicant, service connected disability pension is granted at the service pension rate of 69.5808% with no scheduled review. Motion made by Commissioner Diannitto, seconded by Commissioner Aliano and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Juarez, Keith, Means, Moret and President Harrigan - 9; nays, none. Engineer McOsker was not present but was represented by his attorney, Thomas 1. Wicke.

DISABILITY CLAIM - REVIEW REQUESTED BY PENSIONER - TIER 2-1

Candace 1. Brady (P) Police Captain I (Retired)

Service connected disability pension at 55% is adjusted to 70% with no scheduled review. Motion made by Commissioner Diannitto, seconded by Commissioner Aliano and adopted by the following vote: ayes, Commissioners Aliano, Braidy, Carter, Diannitto, Juarez, Keith, Means, Moret and President Harrigan - 9; nays, none. (Original motion to adjust service connected disability pension to 65% was made by Commissioner Carter, seconded by Commissioner Moret and failed by the following vote: ayes, Commissioners Carter, Moret and President Harrigan - 3; nays Commissioners Aliano, Braidy, Diannitto, Juarez, Keith and Means - 6.) Ms. Brady was present and represented by her attorney, Thomas J. Wicke.

DISABILITY CLAIM - NEW - TIER 5 - 1

Trevor Wilson (P) Police Officer II (Resigned)

Non-service connected disability pension is granted at 30% with no foreseeable purpose for review. Motion made by Commissioner Moret, seconded by Commissioner Diannitto and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Juarez, Keith, Moret and President Harrigan - 8; nays, Commissioner Means - 1. Sergeant Thomas Todaro, Medical Liaison, Los Angeles Police Department, testified regarding Mr. Wilson. Mr. Wilson was present and represented by his attorney, Paul Young.

The meeting was adjourned at 11 :53 p.m.

I1IJ{~ I·

President

Secretary

of the€¦ · · 2015-04-02minutes of the board of fire and police pension commissioners...

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