MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF MARCH 15, 2001
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1 MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF MARCH 15, 2001 The Board of Fire and Police Pension Commissioners ofthe City of Los Angeles met in Room 800,360 East Second Street, on Thursday, March 15,2001. COMMISSIONERS PRESENT: Gay L. Harwin, President Steven Silberman, Acting President George V. Aliano Mike Carter Thomas A. Dawson Sam Diannitto Charles B. Isgar Louis F. Moret COMMISSIONER ABSENT: DavidH. Kim DEP ARTMENT OF FIRE AND POLICE PENSIONS: Gary Mattingly, General Manager D. Edward Griffiths, Asst. General Manager CITY ATTORNEY'S OFFICE: Donna Weisz Jones, Assistant City Attorney President Harwin called the regular meeting to order at 9: 10 a.m. Commissioners Aliano, Carter, Dawson, Diannitto, Moret, Silberman and President Harwin were present at the start of the meeting. COMMUNICATIONS TO THE BOARD a. Miscellaneous correspondence from money managers, consultants, etc., received and filed. b. Monthly Report President Harwin noted that the report is in the Board packet. COMMITTEE REPORTS Benefits Committee Chair Dawson said this Committee is scheduled to meet on March 21 at 8:15 a.m.
2 March 15,2001 Meeting Page 2 Equities Committee Chair Moret said this Committee did not meet. Fixed Income and International Investment Committee President Harwin said this Committee did not meet. High Yield and Alternatives Committee President Harwin said this Committee did not meet. Independence and Administrative Committee Chair Diannitto said this Committee did not meet. Real Estate Committee Chair Carter said that next week is the Real Estate only meeting, and requested information from staff regarding recommendations in the past regarding Lend Lease and about the commingled managers. Mr. Mattingly said that the investment in Lend Lease in value enhancement will come before the Board next week. The Board directed Mr. Mattingly to coordinate with the Real Estate Consultant regarding the commingled managers and if the Real Estate Consultant deems that they meet the criteria then schedule them to come before the Board. President Harwin brought to staff s attention that Lowe Enterprises will be coming before the Board to provide a market review and discuss trends. UPDATE ON THE LARGE CAP VALUE MANAGER FEE NEGOTIATIONS AND POSSIBLE SELECTION OF TCW MANAGEMENT COMPANY OR WELLINGTON MANAGEMENJCOMPANY Mr. Mattingly said that on March l, 200 l, the Board approved hiring Alliance Capital and approved hiring either JCW Management Company or Wellington depending upon fee negotiations. TCW is the lower of the two based on the fee negotiated by staff. TCW is willing to work 10 basis points on anything above $350 million, while Wellington wants 25 basis points. Mr. Mattingly recommend that the Board hire TCW as the third large cap value manager. Commissioner Dawson commended staff for doing a great job on the fee negotiations.
3 March 15, 2001 Meeting Page 3 Commissioner Isgar entered the boardroom towards the end of discussion. RESOLUTION NO After discussion, Commissioner Moret moved that the Board: 1. Hire TCW Management Company to manage a large cap value portfolio; and 2. Authorize the President of the Board, on behalf of the Board, to execute the contract for equity management services, subject to the approval of the City Attorney as to form and legality. The motion was seconded by Commissioner Diannitto and approved by the following vote: ayes, Commissioners Aliano, Carter, Dawson, Diannitto, Isgar, Moret, Silberman and President Harwin - 8; nays, none. AUTHORIZATIONIRATIFICATION OF THE GENERAL MANAGER'S MERIT PAY ADmSTMENT FOR FISCAL YEAR 1998/99 Assistant City Attorney Jones said that Executive Employee Relations Committee and City Council previously approved Mr. Mattingly's salary adjustment for Fiscal Year as authorized under the old City Charter. However, that action was taken after the new Charter was already in effect wherein the Board has the sole authority to approve the General Manager's salary adjustment per the City Attorney opinion. RESOLUTION NO After discussion, Commissioner Diannitto moved that the Board authorize/ratify the General Manager's merit pay adjustment for Fiscal Year to be effective July 1, 1999, which was seconded by Commissioner Dawson and approved by the following vote: ayes, Commissioners Aliano, Carter, Dawson, Diannitto, Isgar, Moret, Silberman and President Harwin - 8; nays, none. GENERAL MANAGER'S REPORT Mr. Mattingly introduced a new Department employee, Cecilia de Los Angeles, who joined the Accounting Section. Cecilia has 20 years experience in the private sector including 12 years as a controller in a construction company. The Board welcomed Ms. de Los Angeles. Mr. Mattingly also informed the Board regarding ongoing negotiations regarding the proposed Charter amendment. If the Charter amendment passes for a new Tier, the member contribution will go from 8% to 9%, but the City will pick up the extra 1% unless the System become underfunded.
4 March 15, 2001 Meeting Page 4 The Mayor's Office requested that they not be required to contribute the additional 1% next fiscal year and would like to wait a year. Mr. Mattingly advised the Mayor's Office that ifthey want to pursue it that they should request the Board for authority to do it. CONSIDERATION OF FUTURE AGENDA ITEMS There was none. PUBLIC COMMENTS There was none. CONSENT ITEMS Mr. Mattingly informed the Board to delete Item 9i (Partial Payment of Pension - Boissier) under the Consent Items. DISCONTINUE PENSIONS - TIER I Delbert D. Carlton Fire Service Retired: Died: Lloyd M. Shriner Police Service Retired: Died: Lauretta Claunch Fire Widow Retired: Died: Mary L. Cole Police Widow Retired: Died: Paul B. Le Page Police Widow Retired: Died: Ida M. Tucker Police Widow Retired: Died: DISCONTINUE PENSIONS - TIER II Jimmy C. Jennings Fire Service Retired: Died: Charles H. Justis Fire Service Retired: Died: Max E. Love Fire Service Retired: Died: Everett E. Cummins Police Service Retired: Died: S. Griffin, Jr. Police Service Retired: Died: Paul B. Le Page Police Service Retired: Died: Harvey McAllister Police Service Retired: Died: Hugh Murchison, Jr. Police Service Retired: Died: William G. Rohm Police Service Retired: Died: Wayne K. Thurston Police Service Retired: Died: Paul A. Trautman Police Service Retired: Died: Odessa C. Brewer Police Widow I Retired: Died:
5 March 15, 2001 Meeting Page 5 SERVICE PENSIONS - TIER II Police Detective II Appt'd: Years 97 Days % John R. Olive Eff: NPB: $6, $3, Detective I Appt'd: Years 79 Days % Raymond J. Bennett Eff: NPB: $6, $2, Police Officer III Appt'd: Years 11 Days % GlenR. King Eff: NPB: $5, $3, Police Officer II + 2 Appt'd: Years 308 Days % Robert E. Rives, Jr. Eff: NPB: $6, $4, SERVICE PENSION - TIER III Police Police Officer III Appt'd: Years 39 Days % Malcolm J. Pate Eff: FAS: $5, $1, ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER I Member's Normal Rate Effective Monthly Name Class Pen. Base % Date Amount Marguerite A. Carlton Fire $ % $ (Delbert D. Carlton) Service Member's CIL 1, $2, ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER II Member's Normal Rate Effective Monthly Name Class Pen. Base % Date Amount Peggy J. Jennings Fire $2, % $1, (Jimmy C. Jennings) Service Member's CIL 1, $2,861.11
6 March 15, 2001 Meeting Page 6 Fire $5, % $2, Ruby A. Justis Service Member's CIL (Charles H. Justis) $3, Norene Cummins Police $1, % $ (Everett E. Cummins) Service Member's CIL 2, $3, Mildred L. Griffin Police $ % $ (S. Griffin, Jr.) Service Member's CIL 1, $2, Josephine L. McAllister Police $1, % $ (Harvey McAllister) Service Member's CIL 2, $3, Mary C. Rohm Police $ % $ (William G. Rohm) Service Member's CIL 1, $1, DECREASE SURVIVING SPOUSE'S - TIER III Decrease the pension of Andria D. Pratt from $5, to $4, effective March 3, 2001, due to the attainment of age 18, of Amanda E. Pratt. There are two remaining minors. Pension benefits of$ will be paid to Amanda E. Pratt as she will remain a full-time student. Andria D. Pratt will continue to receive $ monthly for the two (2) remaining minors. CONTINUE SURVIVING CHILD'S BENEFITS - TIER III Continue benefits for and payable to Amanda E. Pratt, Police Surviving Spouse, surviving child of deceased Police Officer Daniel A. Pratt in the monthly amount of $ due to the full-time student status of Amanda. Monthly pension payments will continue until age 22 if her full-time student status is maintained. CONSERVATORSHIP - TIER I A certified copy of the Letters of Conservatorship issued in the Superior Court of California, County of Los Angeles, Case No. EP004771, appointing Laurel Steen Conservator ofthe Person and Estate of Frances N. Wheeler, Fire Department Surviving Spouse on September 17,1999, has been filed in this office. Monthly pension payments in the amount of $1, will be paid to Laurel Steen.
7 March 15,2001 Meeting Page 7 FINDINGS OF FACT - TIER II Fire a. Gary D. Hight FINDINGS OF FACT - TIER III a. Lawrence J. Roberts Police a. Peter Vanson A motion to approve the Consent Items was made by Commissioner Moret, seconded by Commissioner Diannitto and approved by the following vote; ayes, Commissioners Aliano, Carter, Dawson, Diannitto, Isgar, Moret, Silberman and President Harwin - 8; nays, none. DISABILITIES Mr. Chris Annala requested the Board to consider the pension of a surviving spouse before the Board convenes to Closed Session. SURVIVING SPOUSE - TIER II Jane R. Euge Surviving spouse of William A. Euge (P) Police Officer II + 2 (Deceased) As recommended by staff and concurred in by the applicant, prior Board Action of December 11, 1997 granting a non-service connected surviving spouse pension at 55% is set aside and a service connected surviving spouse disability pension is granted in the amount $3, or 55% of $5, with two minor children at $1, and a cost of living adjustment of $ for a monthly total of $4, Motion made by Commissioner Moret, seconded by Commissioner Silberman and adopted by the following vote: Ayes, Commissioners Aliano, Carter, Dawson, Diannitto, Isgar, Moret, Silberman and President Harwin - 8; nays, none. Mrs. Euge was present. At this time, Mr. Mattingly requested everyone to leave the room for the Board to convene to Closed Session.
8 March 15,2001 Meeting Page 8 CLOSED SESSION PURSUANT TO GOVERNMENT CODE TO DISCUSS PENDING LITIGATION WITH LEGAL COUNSEL REGARDING TREDY V. CITY CLERK, et a1., CASE NO. BS (PETITION FOR PEREMPTORY WRIT OF MANDATE) The Board resumed to open session at 9:50 a.m. At this time President Harwin, left the boardroom for the day. Since Commissioner Silberman was not in the boardroom, Commissioner Diannitto nominated Commissioner Moret to be the President Pro Tern, which was seconded by Commissioner Dawson and approved by the following vote: ayes, Commissioners Aliano, Carter, Dawson, Diannitto, Isgar and Moret - 6; nays, none. President Pro Tern Moret reported that the Board, in closed session, discussed a pending litigation with legal counsel and no action was taken. At this time Commissioner Silberman entered the boardroom and President Pro Tern Moret relinquished the gavel to him. DISABILITIES DISABILITY CLAIM - NEW - TIER III Selvy R. White (P) Sergeant I Non service connected disability pension granted in the amount of$2, or 40% of$5, with a 2 year scheduled review. Motion made by Commissioner Carter, seconded by Commissioner Dawson and adopted by the following vote: ayes, Commissioners Aliano, Carter, Dawson, Isgar, Moret, and Acting President Silberman - 6; nays - Commissioner Diannitto - 1. Lieutenant Leslie Lutz, Medical Liaison, Los Angeles Police Department, testified on behalf of Sergeant White. Sergeant White was present and was represented by his attorney, Karl L. Moody. DISABILITY CLAIMS - NEW - TIER II Richard D. Simmons (P) Detective III (Retired) Hearing continued. Acting President Silberman directed that this claim be continued since a majority vote could not be obtained. (Original motion to deny and readopt the prior Board Action of April 15, 1999 was made by Commissioner Dawson, seconded by Commissioner Carter and failed by the following vote: Ayes, Commissioners Carter, Dawson, Isgar and Moret - 4; nays, Commissioners Aliano, Diannitto and Acting President Silberman - 3. Second motion to rescind the
9 March 15,2001 Meeting Page 9 prior Board Action of April 15, 1999 granting a service pension at % and to grant a service connected disability pension at % with no scheduled review was made by Commissioner Aliano, seconded by Commissioner Diannitto and failed by the following vote: Ayes, Commissioners Aliano, Diannitto, Moret and Acting President Silberman - 4, nays, Commissioners Carter, Dawson and Isgar - 3.) Lieutenant Leslie Lutz, Medical Liaison, Los Angeles Police Department, testified regarding Mr. Simmons. Mr. Simmons was present and was represented by his attorney, Thomas J. Wicke. John T. Sandling (P) Police Officer II + 2 (Retired) Hearing continued. Acting President Silberman directed that this claim be continued since a majority vote could not be obtained. (Original motion to rescind prior Board Action of August 20, 1998 granting a service pension at 70% and grant a service connected disability pension of70% with no scheduled review was made by Commissioner Diannitto, seconded by Commissioner Dawson failed by the following vote: ayes, Commissioners Aliano, Dawson, Diannitto and Moret - 4; nays, Commissioners Carter, Isgar and Acting President Silberman - 3.) Mr. Sandling was present and was represented by his attorney, Thomas J. Wicke. Tedford E. Severns (P) Sergeant II (Retired) Prior Board action of February 17,2000 granting a service pension at 55% is rescinded and a service connected disability pension is granted in the amount of $3, or 55% of $6, with no scheduled review, a cost ofliving adjustment of$ minus $ child support for a monthly total of $3, Motion made by Acting President Silberman, seconded by Commissioner Dawson and adopted by the following vote: ayes, Commissioners Aliano, Carter, Dawson, Diannitto, Isgar, Moret, and Acting President Silberman - 7; nays - none. Kathy Sciarrino, Acting President of European Natural Stone, Captain William R. Sweet, Commanding Officer, Central Traffic Division and Lieutenant Leslie Lutz, Medical Liaison, Los Angeles Police Department testified regarding Mr. Severns. Mr. Severns was present and was represented by his attorney, Thomas J. Wicke. I The meeti g W'g adjourned at 10:52 a.m. Secretary
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