5
FRESNO COUNTY BOARD OF RETIREMENT
September 7, 2005
Trustees Present:
Michael Cardenas Vicki Crow
John Souza Vera Dominguez
Michael Thobe Steven Jolly
Phil Larson Stephanie Savrnoch
Trustees Absent:
A. Papaleo
Others Present:
Ronald S. Frye, Alternate Retired Board Trustee
Les Jorgensen, FCREA
Michael Cunningham, Retired FCERA Member
Erwin Ohannesian, Retired FCERA Member
Ira Summer, Public Pension Professionals
Jeffrey MacLean, Wurts & Associates
Roberto L. Peña, Retirement Administrator
Becky Van Wyk, Chief Accountant
Barbara Booth Grunwald, Deputy County Counsel
Elizabeth Avalos, Administrative Secretary
Sign in Sheet Attached
1. Call to Order
Chair Souza called the meeting to order at 9:10 AM.
2. Public Presentations
None.
Consent Agenda/Opportunity for Public Comment
Trustee Jolly pulled items 7, 8, and 15.
Mr. Peña pulled item 13.
Les Jorgensen pulled item 10.
A motion was made by Trustee Dominguez, seconded by Trustee Crow to Approve Consent Agenda items 3-6, 9, 11, 12, 14, and 16.
*3. Approval of the August 17, 2005 Retirement Board Regular Meeting and the August 29, 2005 Retirement Special Meeting Minutes
RECEIVED AND FILED; APPROVED
*4. Retirements
RECEIVED AND FILED; APPROVED
RETIREES: / DEPARTMENT: / YEARS OF SERVICE (EXCLUDING PUBLIC SERVICE):Margaret L. Anderson / Coroner / 24.40
Norman Anderson / District Attorney / 14.95
Clara Berlanga-Perez / E&TA, Deferred / 8.11
Judith Bolin / E&TA / 17.02
Carol Brucie / Child Support Services / 15.56
Fred J. Dupras / Superior Court, Deferred / 7.67
Kay Frauenholtz / Superior Court, Deferred / 29.05
Susan Greer / Probation / 16.36
Margaret H. Y. Lee / Library, Deferred / 10.87
Robert L. Lewis / Administrative Office / 13.91
Donald R. Moore / VMC, Deferred / 20.55
Carol Nalbandian / E&TA, Deferred / 4.01
James C. Pierce / Public Works & Planning / 28.64
Helen Rodela / Community Health / 15.68
Joyce E. Rogers / Community Health / 11.88
Frederick Sawaske / NCFPD / 12.00
Joseph A. Tarmina / E&TA, Deferred / 10.43
Thao Truong / Assessor-Recorder / 10.04
Donald L. Waite, Jr. / Probation, Deferred / 17.14
Sarah E. Waite / Probation, Deferred / 17.13
Judith H. Waterman / Superior Court / 22.74
*5. Deferred Retirements
RECEIVED AND FILED; APPROVED
Damon Bagley / Sheriff / 7.12Eugenie Baranoff / Community Health / 2.95
Felix Contreras / Probation / 7.90
Garo Diarian / E&TA / 3.09
Beverly Fischer / E&TA / 16.27
Andre J. Hernandez / Sheriff / 5.14
*6. Request to Purchase General Service as Safety Time
RECEIVED AND FILED; APPROVED
a. Philip Bellefeuille
b. Omar Briones
c. Roxanne Caldera
d. Daniel L. Fries
e. Annette Omachi
*7. Most recent investment returns, performance summaries and general investment information from investment managers
Trustee Jolly requested that the investment returns show net and gross amounts if available.
RECEIVED AND FILED
*8. Public Records Requests and/or Retirement Related Information Requests from Nancy Chase of Cooperative Research Services and Kristin Zennario of North American Holdings & Collection
Trustee Jolly brought to the attention of Administration that the Public Records Request from John Snyder, Fresno County Grand Jury, had been omitted from the Agenda. Mr. Peña explained that it was an oversight by Administration.
Chair Souza brought to the attention of Administration that the Public Records Request from John Snyder, Fresno County Grand Jury, that James Long replaced Charles Roper on the Board in 1999.
Michael Cunningham addressed the Board.
RECEIVED AND FILED
*9. Small claims filing against William Fearnside and Donald Grassi in the amount of $1,104.04 for unpaid rent at the Fresno Station
RECEIVED AND FILED
*10. Financial Statements for the Fresno Station for the period April 1, 2005 through June 30, 2005
Les Jorgensen, FCREA, addressed the Board regarding the operating loss being stated on the memo section of the Agenda item and the transfer of funds from FCERA and Fresno Station.
Becky Van Wyk gave clarification on the operating transfer of funds from FCERA to the Fresno Station.
RECEIVED AND FILED
*11. Discrimination complaint filed by FCERA General member Robert Skowronski with the Personnel Services Department of the County of Fresno regarding the mortality rate tables used by FCERA Actuary in calculating the member contribution rate approved by the Board of Retirement
RECEIVED AND FILED
*12. Documents and information regarding the Safety Member election scheduled for November 17, 2005
RECEIVED AND FILED
*13 Final Actuarial Study on the Richman Proposal impact on the FCERA pension plan
Mr. Peña explained that the item had not been finalized and would not be available until the September 21st Regular Board meeting.
*14. Los Angeles County Employees’ Retirement Association (LACERA) request and proposed comments to the Internal Revenue Service and Treasury Department regarding proposed regulations under Internal Revenue Code Section 415
RECEIVED AND FILED; APPROVED
*15. Blackrock notification of the retention of one security that was downgraded to a below investment grade rating in the fixed income portfolio – TriMas Corp.
Trustee Jolly voiced concerns regarding a possible violation that may have occurred. Jeffrey MacLean, Wurts & Associates, explained that no violations had occurred.
RECEIVED AND FILED; APPROVED
*16 Investment Guidelines for the International Equity Manager, Oechsle International Advisors and Emerging Markets Equity Manager, Mondrian Investment Partners Limited
RECEIVED AND FILED; APPROVED
A motion was made by Trustee Larson, seconded by Trustee Dominguez to Approve Consent Agenda items 7, 8, 10, and 15. VOTE: Unanimous (Absent – Papaleo)
17. Discussion and appropriate action regarding request for proposal for transition management services presented by Jeffrey MacLean, Wurts & Associates
Mr. MacLean presented to the Board the three candidates (Barclays Global, Russell Investment Group, and State Street Bank & Trust) recommended as transition managers.
A motion was made by Trustee Jolly, seconded by Trustee Crow to approve the three firms as potential transition managers pending successful contract approval; authorize with Mr. Peña and Mr. MacLean to use their discretion when choosing a transition manager for a specific transition. VOTE: Unanimous (Absent – Papaleo)
RECEIVED AND FILED; APPROVED
18. Update on the progress of liquidation of DT Capital Partners, L.P. investment presented by Jeffrey MacLean, Wurts & Associates
Mr. MacLean gave an update on the progress of liquidation of DT Capital Partners, L.P. investment.
RECEIVED AND FILED
19. Presentation of the June 30, 2005 Investment Performance Review presented by Jeffrey MacLean, Wurts & Associates
Mr. MacLean gave a presentation on the June 30, 2005 Investment Performance Review.
RECEIVED AND FILED
20. Presentation of the June 30, 2005 Guideline Compliance Report presented by Jeffrey MacLean, Wurts & Associates
Mr. MacLean gave a presentation on June 30, 2005 Guideline Compliance Report.
RECEIVED AND FILED
21. Discussion and appropriate action on Cost of Living (COL) benefit calculation component of the Temporary Annuity Option (TAO) presented by Ira Summer of Public Pension Professionals
Ira Summer presented options regarding the COL benefit calculation component of the Temporary Annuity Option.
Les Jorgensen addressed the Board.
Michael Cunningham addressed the Board.
Erwin Ohannesian addressed the Board.
Roger Greening addressed the Board.
The Board instructed Mr. Peña to request a report from Ira Summer regarding the impact on the Supplemental Health and Supplemental COL (Non-Vested) Benefits and the Actuarial Valuation if $15 million was transferred from the reserves non-vested benefit to fund the current method.
A motion was made by Trustee Thobe, seconded by Trustee Jolly to continue the current method of calculating the Cost of Living component of the Temporary Annuity Option and to discuss payment options at a future Board meeting. VOTE: Unanimous (Recuse – Larson) (Absent – Papaleo)
RECEIVED AND FILED; APPROVED
Trustee Sousa departed at 10:32 AM. Alternate Retired Trustee Frye joined the Board at 10:32 AM.
Trustees Crow and Larson departed at 11:50 AM.
22. Closed Session:
a. Conference with Legal Counsel – Actual Litigation - pursuant to G.C. §54956.9(a) - County of Fresno v. Board of Retirement
b. Conference with Legal Counsel - Anticipated Litigation - pursuant to G.C. §54956.9(c) - initiation of litigation by FCERA - one potential case
c. Disability Retirement Applications – Personnel Exception (G.C. §54957):
1. Ernest Niegel
2. Herbert Holt
3. Barbara Harris
23. Report from Closed Session
22.a. Nothing to Report
22.b. Nothing to Report
22.c.1. Ernest Niegel – Decision – To approve the Findings of Fact and Decision presented to the Board granting Ernest Niegel’s service connected disability effective January 27, 2000. M-Thobe, S-Dominguez, VOTE: YES – Dominguez, Savrnoch, Thobe, Frye, NO – Cardenas, ABSTAIN – Jolly, ABSENT – Crow, Larson, Papaleo.
22.c.2. Herbert Holt – Decision – To approve the Findings of Fact and Decision presented to the Board granting Herbert Holt’s service connected disability effective February 2, 2005. M-Thobe, S-Dominguez, VOTE: YES – Cardenas, Dominguez, Savrnoch, Thobe, Frye, NO – Jolly, ABSENT – Crow, Larson, Papaleo.
22.c.3. Barbara Harris – Decision – To approve the Findings of Fact and Decision presented to the Board granting Barbara Harris’ service connected disability effective May 1, 2004. M-Thobe, S-Dominguez, VOTE: YES – Dominguez, Jolly, Thobe, Frye, NO – Savrnoch, ABSENT – Crow, Larson, Papaleo, Cardenas.
Trustee Cardenas departed at 12:40 PM.
24. Report from FCERA Administration
Mr. Peña gave a brief description on the following items:
1. Final Compensation Repayment Hardship requests.
2. American Realty Company – Fresno Station.
- The Board directed Mr. Peña to put American Realty Company – Fresno
Station on an upcoming Agenda in Closed Session.
3. The time Becky Van Wyk has spent on Fresno Station business.
4. A reminder of the Audit Meeting on September 9, 2005 at 9:00 AM.
Ms. Van Wyk gave a brief description on the following items:
1. The Auditors will be at FCERA on September 19th.
2. FCERA signs will be installed October 1st.
3. Construction will begin on the Corkboard Display.
25. Report from County Counsel
1. Ms. Grunwald will not be present at the Audit Committee due to a Roundtable meeting.
26. Board Member Announcements or Reports
None.
NEXT MEETINGS:
September 21, 2005 – 9:00 AM (Monday)
Regular Meeting
FCERA Boardroom
1111 H Street, Fresno, CA 93721
October 5 and 6, 2005 – 9:00 AM (Wednesday)
Regular Meeting
FCERA Boardroom
1111 H Street, Fresno, CA 93721
October 19, 2005 – 9:00 AM (Wednesday)
Regular Meeting
FCERA Boardroom
1111 H Street, Fresno, CA 93721
There being no further business, the meeting was adjourned at 1:43 PM.
Roberto L. Peña
Secretary to the Retirement Board
09/07/05 Regular Meeting