ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM

BOARD OF RETIREMENT

2223 WELLINGTON AVENUE

SANTA ANA, CALIFORNIA

 

REGULAR MEETING

APRIL 23, 2001

MINUTES

 

 

The Chairman called the meeting to order at 8:30 a.m. and read the opening statement into the record.  Attendance was as follows:

 

Present:          George W. Jeffries, Chairman; Frank E. Eley, Vice-Chairman; Reed L. Royalty; Thomas J. Lightvoet; John M.W. Moorlach; Keith L. Concannon; Charles H. Simons; Thomas N. Fox; and Sharon L. Neebe

 

Alternate:        David J. Thompson, alternate for all elected Board Members

 

Also present: James W. Buck, Chief Operations Officer; Farouki Majeed, Chief Investment Officer; Shanta Chary, Investment Analyst; Toi Dang, Chief Financial Officer; Ricki Contreras and Andre Kujawski, Disability Investigators; Fred Messerer, Disability Staff Attorney; Stephen Cadena, Member Services Manager; Alicia Cavazos, Human Resources Manager; Anthony Beltran, Audio/Visual Technician; Ranea Pallad, Recording Secretary.

 

Ashley Dunning, Esq., Steefel, Levitt & Weiss

 

Mr. Thompson led the pledge of allegiance and Mr. Jeffries offered the invocation.

 

Mr. Jeffries stated the Supplemental Item S-E-1 would be considered after I-1.

 

Mr. Jeffries stated that the Board would adjourn this meeting in the memory of former, long-time city councilman, John Ferraro, a great leader and respected by all.

 

 

PRESENTATION OF COMMENDATION

 

Presentation was made to Mr. Richard Unruh upon his retirement after fourteen years of service as a respected fund manager for the Orange County Employees Retirement System.

 

 

 

 

 

CONSENT AGENDA

 

Mr. Moorlach pulled item C-2B, C-3, and C-4.

 

A motion was made to move the remainder of the Consent Agenda by Mr. Lightvoet and seconded by Mr. Fox.  The motion passed unanimously.

 

 

C-1      MATERIAL DISTRIBUTED

            Applications and Notices                                                                                                                                         - April 23, 2001

           

Recommendation:  Receive and file.

 

 

C-2      BOARD MEETINGS AND COMMITTEE MEETINGS:

 

A.        Meeting Authorization

Audit Committee Meeting                                                                                                                    - March 16, 2001

Regular Board Meeting                                                                                                                        - March 19, 2001

Portfolio Review Meetings                                                                                                                   - March 27 & 28, 2001

 

B.                Approval of Minutes

Audit Committee Meeting                                                                                                                    - March 16, 2001

Regular Board Meeting                                                                                                                        - March 19, 2001

Portfolio Review Meetings                                                                                                                   - March 27 & 28, 2001

 

Recommendation:  Authorize all meetings and approve all minutes.

 

See Item I-1.

 

 

C-3      TURNOVER VACANCY REPORT FOR OCERS

 

            Recommendation: Receive and file.

 

            See Item I-1

 

 

C-4      UPDATE ON THE CURRENT STATUS OF THE MARS PROJECT

           

            RecommendationReceive and file.

 

See Item I-1.

 

* * * * * * * * END OF CONSENT AGENDA * * * * * * * *

 

I-1        INDIVIDUAL ACTION ON ANY ITEM TRAILED FROM THE CONSENT AGENDA

           

C-2B   APPROVAL OF MINUTES                                                                       

 

Mr. Moorlach stated that the Minutes of March 27, 2001 for Portfolio Review Meeting showed him as present; however, he was absent from the meeting as he was making a presentation to the Board of Supervisors and regretfully could not attend.

 

A motion was made by Mr. Moorlach and seconded by Mr. Fox to approve the minutes as corrected. The motion passed unanimously.

 

 

C-3  TURNOVER VACANCY REPORT FOR OCERS

 

Mr. Moorlach asked the status of the recruitment for the positions of Chief Legal Officer and Executive Secretary.

 

Mr. Jeffries stated that these open positions are being held open for further discussion when the Administrator comes aboard.

 

Mr. Concannon asked about Manpower employees, i.e., who they are, where they come from, and if we had a grant.

 

Mr. Lightvoet stated he did not see an issue with temporary employees or extra help.  Temporary and extra help are interchangeable

 

Ms. Cavazos stated that we do not have a grant for temporary workers.  When executive management identifies a need to hire temporary workers, then a request is made through Human Resources to bring on extra help staff.  Cost is considered during budget season, and there is no grant.  Cost is an expense paid by OCERS.

 

Mr. Fox stated that a determination as to whether to hire a Staff Attorney or Chief Legal Officer will be discussed when the Board meets in July based on CEO input. 

Mr. Fox stated he wanted the Board to review all budgeted management class employees going into the 2002 budget.

 

A motion was made by Mr. Royalty and seconded by Ms. Neebe to receive and file the Turnover Vacancy Report for OCERS.  The motion passed unanimously.

 

 

 

C-4  UPDATE ON THE CURRENT STATUS OF THE MARS PROJECT

 

Mr. Moorlach asked Ms. Ford, Project Consultant, for updates on Tasks 140, 141, 137, and 148 of the monthly MARS project.

 

Ms. Ford responded with updates on these Tasks, and Mr. Moorlach thanked Ms. Ford for information.

 

Mr. Concannon stated his concerns regarding conflict of interest regarding one employee on the project.  Suggested that the Board put together a Conflict of Interest rule on employees leaving OCERS and accepting positions with employers who have contracted with OCERS.

 

Mr. Concannon also stated that the Project Director should be on-site.  He understands that the Project Director is here infrequently.

 

A motion was made by Mr. Concannon and seconded by Mr. Fox to receive and file the update on the current status of the MARS Project. The motion passed unanimously.

 

 

 

SUPPLEMENTAL AGENDA

 

EXECUTIVE SESSION AGENDA

 

Board entered into closed session at 8:52 A.M.

Board entered open session at 9:28 A.M.

 

S-E-1  DISCUSSION CONCERNING PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT TO GOVERNMENT CODE SECTION 54957.

           

Position to be evaluated:  Communication Analyst.

 

Mr. Jeffries stated there was no reportable action taken.

 

 

I-2        CHIEF INVESTMENT OFFICER’S REPORT

           

Mr. Majeed presented the Chief Investment Officer’s Report on the assets and asset allocation that are normally reviewed, as well as investment fees for the year 2001.  Domestic equities are under-weighted relative to target, and fixed income is over-weighted.  Hence, funds will be moved from fixed income to domestic equities at the end of April to rebalance the asset allocation.

 

Mr. Thompson asked Mr. Majeed to expand on how OCERS’ fee structure compares to other like size retirement systems.

 

Mr. Majeed stated that OCERS’ fee structure does not appear to be that high compared to other funds with a similar type of asset allocation structure.  He would ask the consultant to comment on that at the next meeting.

 

Mr. Jeffries asked if Mr. Majeed could review how fees are related to value added in terms of performance.  Mr. Majeed would attempt to provide that analysis.

 

A motion was made by Mr. Lightvoet and seconded by Mr. Fox to receive and file the Chief Investment Officer’s report.  Motion passed unanimously.

 

The Board recessed at 9:55 A.M.

The Board reconvened at 10:13 A.M.

 

After the Board reconvened, Mr. Jeffries stated that the May 3rd scheduled Annual Rate Setting Meeting could be split into two meetings, in order to serve the very complicated series of options which will be presented to the Board.  Board will hear the series of options at the May 3rd meeting, but may have the actual vote on the choice of options at the regular Board meeting on May 21st.  This decision was done for the interest of everyone because of the complexity of the options.

 

 

I-3        RETIREE MEDICAL ADMINISTRATION EXPENSES FY 2001-2002

           

Mr. Buck stated that the recommendation reads to take appropriate action; however, that is incorrect.  Staff recommendation was corrected to read approve the expenditure.

                       

A motion was made by Mr. Concannon and seconded by Mr. Fox to approve the Administrative Expenses FY 2001-2002.

           

            Mr. Moorlach was not familiar with the “letter of agreement”.  Asked if there were any other documents that Board should be receiving regarding administration expenses.

 

            Mr. Concannon stated that Retiree Medical Administration Expenses are basically to handle the administrative part of the retirees health insurance.  Mr. Concannon stated that the Board needed to have more information regarding the “letter of agreement”.

 

            Mr. Lightvoet stated that the agreement is very simple, and it is not the Board’s responsibility to serve the retirees.  The Board’s responsibility is to follow through on the benefits that the County has established, and those issues fall under the County.

 

            Mr. Fox stated that the medical program is set up under the County because that is how it is outlined in the government code and the County administers it.

 

            After discussion, the motion passed unanimously.

 

I-4        GENERAL MEMBER STUDY – ACTUARIAL COST STUDY BY TOWERS PERRIN ON GENERAL MEMBER PLAN CHANGES – SPECIFICALLY THE 2% AT 55 AND 57 FORMULAS

 

            A motion was made by Mr. Fox and seconded by Mr. Concannon to receive and file the cost study report.  The motion passed unanimously

 

I-5        APPEAL OF JULIENE STUART WHITE (RETIRED MEMBER, OCTA)

           

            Applicant addressed the Board.    

 

            A motion was made by Mr. Moorlach and seconded by Mr. Simons to refer to a hearing officer.  A roll call vote was taken, and the motion passed 5 to 4 with voting as follows:

 

            Ayes                                              Nays

 

            Mr. Concannon                        Mr. Fox

            Mr. Eley                                    Mr. Lightvoet

            Mr. Moorlach                            Mr. Royalty

            Ms. Neebe                                Mr. Jeffries

            Mr. Simons

 

 

I-6        APPLICATION BY ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION

 

            A motion was made by Mr. Moorlach and seconded by Mr. Fox to grant staff authority to open discussions with OCLAFCO. Motion passed unanimously..

 

                                                                       

I-7        TRANSPORTATION CORRIDOR AGENCY INTERIM AGREEMENT FOR SUPPLEMENTAL BENEFITS.

 

            Ms. Dunning stated that the agreement and changes have been reviewed by legal counsel.

 

            A motion was made by Mr. Ely and seconded by Mr. Lightvoet to approve the TCA’s interim ARBA agreement.  The motion passed unanimously.

 

 

NOTE:  WHEN CONSIDERING DISABILITY RETIREMENT APPLICATIONS, THE                     BOARD MAY FIND IT NECESSARY TO DISCUSS MATTERS RELATING TO THE EVALUATION OF THE WORK PERFORMANCE OF AN EMPLOYEE WHO HAS APPLIED FOR DISABILITY RETIREMENT, OR DISCUSS COMPLAINTS OR CHARGES MADE AGAINST SUCH EMPLOYEE.  IF THIS OCCURS, THE BOARD MAY ADJOURN TO A CLOSED SESSION TO DISCUSS SUCH MATTERS PURSUANT TO GOVERNMENT CODE SECTION 54957, UNLESS THE EMPLOYEE REQUESTS THAT THE DISCUSSION BE IN PUBLIC.                                            

 

 

DISABILITY APPLICATIONS AGENDA

 

11:00 A.M.

 

 

STAFF RECOMMENDATION TO GRANT SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 09/13/00 (General Member) (D-1)

 

D-1      THAM TRAN, Probation

Information Processing Technician

Application for service and non-service connected disability retirement

 

A motion was made by Mr. Lightvoet and seconded by Mr. Fox to send this to a hearing officer.  The motion passed.

           

 

STAFF RECOMMENDATION TO GRANT SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 8/29/00 (General Member) (D-2)

 

D-2      IGNACIO CARILLO, Integrated Waste Management Department

Landfill Equipment Operator

Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Ely and seconded by Mr. Royalty to a grant service connected disability retirement with an effective date of 8/29/00. 

 

            The motion passed unanimously.

 

           

STAFF RECOMMENDATION TO GRANT SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 8/29/00 (General Member) (D-3)

 

D-3      LEEAYN CHAPMAN, Sheriff’s Department

Forensic Specialist

Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Fox and seconded by Simons to grant a service connected disability retirement with an effective date of 8/29/00.

 

            A substitute  motion was made by Mr. Lightvoet and seconded by Mr. Moorlach to refer to a hearing officer.

 

            Mr. Singer, attorney for the applicant, addressed the board.

 

            A roll call vote was taken on the substitute motion and the motion failed 5 to 4.

 

            Ayes                                              Nays

            Mr. Lightvoet                             Mr. Concannon

            Mr. Moorlach                             Mr. Eley

            Mr. Royalty                                Mr. Fox

            Mr. Jeffries                                Ms. Neebe

                                                              Mr. Simons

 

            A vote was taken on the original motion and the motion passed.

 

 

            STAFF RECOMMENDATION TO GRANT SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF DAY AFTER THE LAST DAY ON PAYROLL (General Member) (D-4)

 

D-4      DOUGLAS NELSON, Social Services Agency

Welfare Fraud Investigator

Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Ely and seconded by Ms. Neebe to grant service connected disability retirement with an effective date of day after the last day on payroll.

 

            A substitute motion was made by Mr. Lightvoet and seconded by Mr. Moorlach to grant non-service connected disability.

 

A roll call vote was then taken on the substitute motion and the motion passed 6 to 3 as follows:  

 

            Ayes                                              Nays

            Mr. Concannon                         Mr. Eley

            Mr. Fox                                     Ms. Neebe                                                              

            Mr. Lightvoet                             Mr. Simons

            Mr. Moorlach

            Mr. Royalty

            Mr. Jeffries

 

 

            STAFF RECOMMENDATION TO GRANT SERVICE DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 2/4/97 (General Member) (D-5)

 

D-5      ERIN CHAMBERLAIN, Social Services Agency

Group Counselor Nights

            Application for service connected disability retirement

 

            A motion was made by Mr. Lightvoet and seconded by Mr. Simons to refer to hearing officer.

 

            Ms. Thissen, friend of applicant, addressed the Board.

 

            A substitute motion was made by Mr. Fox and seconded by Ms. Neebe to grant service disability retirement with an effective date of 2/4/97. Motion passed unanimously.

           

 

            STAFF RECOMMENDATION TO GRANT SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 06-10-00. (D-6)

 

D-6      CAROL KISER, Orange County Transportation Authority

Coach Operator

Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Lightvoet and seconded by Mr. Fox to grant service connected disability retirement with an effective date of 06-10-00.  Motion passed

            unanimously.

 

STAFF RECOMMENDATION TO GRANT NON-SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 6/14/00, DENY SERVICE CONNECTED DISABILITY RETIREMENT. (D-7)

 

D-7      BLANCHE THOME, Superior Court

Office Supervisor

            Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Royalty and seconded by Mr. Ely to grant non-service connected disability retirement and deny service connected disability retirement with an effective date of 6/14/00. Motion passed unanimously.

 

 

           

 

 

 

STAFF RECOMMENDATION TO GRANT NON-SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 10/26/00. (D-8)

 

D-8      ROLAND LUCERO, Orange County Sheriff’s Department

Correctional Services Technician

Application for non-service connected disability retirement

 

            A motion was made by Mr. Fox and seconded by Mr. Royalty to grant non-service connected disability retirement with an effective date of 10/26/00.  Motion passed unanimously.

 

 

            STAFF RECOMMENDATION TO GRANT NON-SERVICE CONNECTED DISABILITY RETIREMENT WITH AN EFFECTIVE DATE OF 8/9/00 (General Member) (D-9)

 

D-9      JEAN MILLER, Orange County Treasurer/Tax Collector

            Accounting Assistant II

            Application for non-service connected disability retirement

 

            A motion was made by Mr. Fox and seconded by Mr. Ely to grant non-service connected disability retirement with an effective date of 8/9/00.  Motion passed unanimously.

 

 

            STAFF RECOMMENDATION TO DENY SERVICE AND NON-SERVICE CONNECTED DISABILITY RETIREMENT (Safety Member) (D-10)

 

D-10   LINDA BERTAGNA, Orange County Sheriff’s Department

Investigator

Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Royalty and seconded by Mr. Jeffries to deny service and non-service connected disability.

 

            Mr. Singer, applicant’s attorney, addressed the board.                                      

 

            Matter trailed to end of disability agenda for closed session hearing.

 

            Board entered closed session at 11:50 a.m. and entered open session at 12:10 p.m.

 

A substitute motion  was made by Mr. Fox and seconded by Mr. Ely to deny service connected disability retirement, and grant a non-service connected disability retirement.

 

 

 

After discussion, a roll call vote was taken and the motion passed five to four with the voting as follows:

 

Ayes                                                                                                                                                   Nays

 

Mr. Concannon                                                                                    Mr. Lightvoet

Mr. Eley                                                                                                                                  Mr. Moorlach 

Mr. Fox                                                                                                                                   Mr. Royalty

Ms. Neebe                                                                                                                             Mr. Simons

Mr. Jeffries

 

 

            STAFF RECOMMENDATION TO DENY SERVICE CONNECTED DISABILITY RETIREMENT  (Safety Member) (D-11)

 

D-11   SYLVIA HARRIS, Community Services Agency

Staff Analyst III

Application for service connected disability retirement

 

            Sylvia Harris addressed the Board.                                                                       

 

            A motion was made by Mr. Moorlach and seconded by Mr. Lightvoet to refer to hearing officer.  Motion  passed unanimously.

           

 

            STAFF RECOMMENDATION TO GRANT APPLICANT’S REQUEST FOR AN EARLIER EFFECTIVE DISABILITY RETIREMENT DATE PER GOVT. CODE 31724,

            (General Member) (D-12)

 

D-12   MIKE TORABI, Retired (Social Services Agency)

Eligibility Technician

            Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Royalty and seconded by Mr. Moorlach to grant applicant’s request for an earlier effective disability retirement date of 7/27/99. Motion passed unanimously.

 

           

            STAFF RECOMMENDATION TO GRANT APPLICANT’S REQUEST FOR AN EARLIER EFFECTIVE DISABILITY RETIREMENT DATE OF 9/12/98 AS APPLICANT HAS MET THE BURDEN PER PROVISIONS OF GOVT. CODE 31724. (General Member) (D-13)

 

D-13   MICHELLE QUINTANA, Health Care Agency

Program Evaluation Specialist

            Application for service and non-service connected disability retirement

 

            A motion was made by Mr. Royalty and seconded by Mr. Fox to grant applicant’s request for an earlier effective disability retirement date of 9/12/98 as applicant has met the burden per provisions of Govt. Code 31724.  Motion passed unanimously.

 

 

STAFF RECOMMENDATION TO DISMISS APPLICATION WITH PREJUDICE DUE TO UNTIMELY FILING PER GOVT. CODE 31722. (General Member) (D-14)

 

D-14   EUGENE TAMBURELLI, Orange County Transportation Authority

Public Safety Officer I

Application for service and non-service connected disability retirement

           

A motion was made by Mr. Fox and seconded by Mr. Lightvoet to dismiss application with prejudice due to untimely filing per Govt. Code 31722.

 

Mr. Tamburelli addressed the Board.

 

The motion passed unanimously.

 

 

STAFF RECOMMENDATION TO DISMISS HEARING AND APPLICATION (General Member) (D-15)

 

D-15   MARY ANN HOYT, Orange County Sheriff’s Department                           

Computer Graphics Specialist

Application for service connected disability retirement

 

A motion was made by Mr. Lightvoet and seconded by Mr. Fox to dismiss hearing and application.  Motion passed unanimously.

 

 

STAFF RECOMMENDATION TO APPROVE ATTORNEY’S FEES AND COSTS IN THE MATTER OF ARTHUR BRIGMAN (General Member) (D-16)

 

D-16   ARTHUR BRIGMAN, Probation (Retired)

Deputy Probation Officer II

Application for service connected disability retirement

 

            A motion was made by Mr. Lightvoet and seconded by Mr. Concannon to approve attorney’s fees and costs.  The motion passed with one dissent.

 

 

           

 

 

NO STAFF RECOMMENDATION (General Member) (D-17)

 

D-17   JEAN PEARCE, Orange County Employees Retirement System

Staff Analyst III

Application for service and non-service connected disability retirement

 

Mr. Steve Cadena, OCERS Member Service Manager, addressed the Board and requested this matter be removed from the agenda.

 

 

***********END OF DISABILITY AGENDA*************

 

 

PUBLIC COMMENTS:

 

There were no public comments.

 

 

BOARD MEMBERS COMMENTS:

 

Mr. Jeffries referred to an article in the Orange County Register written by Mr. Royalty, President of the Orange County Taxpayers Association. He encouraged everyone to read the article.

 

Mr. Concannon stated that he made an error on last month’s agenda, Item D-5, when he voted in favor of the non-service connected disability retirement for Mary Almond. He requested that the minutes of this meeting reflect that his intention was to vote no for a non-service connected disability retirement for Mary Almond.

 

 

STAFF COMMENTS:

 

No comments.

 

 

COUNSEL COMMENTS:

 

No comments.

 

 

ADJOURNMENT:  (IN MEMORY OF THE ACTIVE MEMBERS, RETIRED MEMBERS, AND SURVIVING SPOUSES WHO PASSED AWAY)

 

Active Member:                                  Thanh Dang

 

Retired Members:     Thomas Baker, Jane Campbell, Pearl Crouch, Esther Duron, Shirley Harding, Bertha Lefebvre, Evelyn Mc Collum, John Meany, Mabel Metz, Veronica Miller, Dorothy Mounce, Bo Van Nguyen, Pete Ojeda, John Roels, Robert Sylvester, Edith Vaughn, Virginia Wheat, Evelyn Zellmer, Olive Zinkle

 

Surviving Spouses:     Faye Adams, Jeri Avery, Sarah Fawcett

 

There being no further business to bring before the Board, a motion was made by

Mr. Concannon and seconded by Mr. Jeffries to adjourn.  Motion passed unanimously.

 

The meeting adjourned at 12:30 p.m.

 

 

 

Submitted by:                                                                                                                                                                        Approved by:

 

 

 

 

_____________                                                                                                                                                                   _______________                                                                                                 

James W. Buck                                                                                                                                                                     George W. Jeffries

Interim Secretary                                                                                                                                                                   Chairman