DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) CORRECTED MINUTES

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1 DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) KATHLEEN L. KUBLER Clerk of the Board 1221 State Street El Centro, CA CORRECTED MINUTES REGULAR MEETING OF THE IMPERIAL COUNTY BOARD OF RETIREMENT May 21, :30 A.M. 940 W. Main Street County Administration Center, Second Floor El Centro, CA OPEN SESSION 1. The meeting was called to order by Chairman Jauregui at 8:30 a.m. A. Roll Call: MEMBERS PRESENT: VOGEL, LANG, TERRAZAS, JAUREGUI, WILLIAMS, McFETRIDGE, RHODES MEMBERS ABSENT: HOLBROOK, TABAREZ, JR. MEMBERS ARRIVING AFTER ROLL CALL: JERNIGAN ALTERNATES PRESENT: BUMGART, JERNIGAN LEGAL REPRESENTATIVES: Rosario Gonzalez, Deputy County Counsel CLERK: Kathleen L. Kubler, Retirement Specialist STAFF: David H. Prince, Retirement Administrator, Assistant Retirement Administrator, Regina Rodrigues, Scott W. Jarvis, Accountant/Auditor B. Pledge of Allegiance: The Pledge of Allegiance was led by Chairman, Jauregui. 2. Discussion of the Agenda: A. Items to be pulled from the Action Calendar: None B. Items to be pulled from the Discussion Calendar: None C. Items to be pulled from the Consent Agenda: None

2 May 21, 2014 CORRECTED MINUTES PAGE 2 D. Emergency Items to be added: None E. Approval of the Agenda: MOTION by Williams, Second by Vogel and carried by a unanimous vote of members present, the Board approved the Agenda. F. Approval of the Consent Agenda: MOTION by Bumgart, Second by Vogel and carried by a unanimous vote of members present, the Board approved the Consent Agenda. 3. Public comments on items that are NOT on the Action or Discussion Calendars. (Public comments on items that are on the Action or Discussion Calendars shall only be made during the Board s discussion of these items.): Mr. Prince announced to those in attendance that board member Lang would be stepping down from her seat on the retirement board as she had accepted a new position outside of county service. Dr. Lang addressed the board and those in attendance stating that she had accepted the offer of Executive Director for California Health & Wellness, a subsidiary of Centene Corporation, a private nationwide health care firm contracted to administer Medi-Cal benefits for Imperial County. Chairman Jauregui thanked Dr. Lang for her service to the retirement board and wished her much success in her new position. ACTION CALENDAR 4. Approval of the Minutes of the April 16, 2014, adjourned regularly scheduled meeting: MOTION by Lang, Second by Vogel and carried by a vote of 8, with one abstention by Terrazas, due to absence, the board approved the Minutes of the April 16, 2014, adjourned regularly scheduled meeting. 5. Presentations by Investment Managers: A. TimesSquare Capital Management, LLC: Michael Ray, Senior Vice President, Product Manager: Mr. Ray presented the board with a brief overview of the firm and management process. The portfolio continues to perform well and Mr. Ray discussed the highlight returns for the period..

3 May 21, 2014 CORRECTED MINUTES PAGE 3 B. T. Rowe Price: John D. Plowright, CFA, Institutional Client Service, North America, and J. David Wagner, CFA, Portfolio Manager: Mr. Plowright gave the board a brief review of the firm operations and also assured the board that outgoing Vice President, Portfolio Manager, Preston Athey would still be very much involved with the firm, and that he would continue his assistance and guidance to staff who monitor the ICERS portfolio. Mr. Wagner reviewed the account activity, investment strategy and performance with the board. C. KKR Mezzanine: Dan McLaughlin, Director, Client and Partner Group, and Christina Fang, Principal, Credit Product Team: Mr. McLaughlin presented the board with a recent developments and acquisitions of the firm, as well as the account activity and performance yield. Ms. Fang reported on the investment strategies and account credits. D. ASB: Frank Nigro, Vice President and West Coast Client Service Manager: Mr. Nigro gave a brief recap of the core real estate fund, which concentrates solely on US office space, residential, high-end retail, and industrial markets. He reviewed the firm s investment strategy, and reported on the last 12 month net returns, which have continued to out-perform in the first quarter of Investment Consultant Quarterly Performance Review: Scott J. Whalen, Senior Consultant: A. Asset Manager Performance Review: Mr. Whalen discussed the healing market environment, and the potential for a self-sustaining economy. Mr. Whalen also reviewed the ICERS fund performance which continues to be positive three quarters into the fiscal year. B. Discussion/Approval: Investment presentation material for Board Meeting/Workshop, June 4, 2014: Mr. Whalen discussed the draft agenda for the workshop that he and Mr. Prince had composed to provide additional investments education to the board.

4 May 21, 2014 CORRECTED MINUTES PAGE 4 7. Discussion/Action: Proposed Administrative Budget, Fiscal Year : Mr. Prince presented the details of the proposed budget to the board. He also thanked Mr. Jarvis for his diligence and attention to the detailed draft of the plan. MOTION by Vogel, Second by Lang and carried by a unanimous vote of members present, the board approved the ICERS Proposed Administrative Budget for Fiscal Year , with an amendment to re-format the numbering of Appendix 1A. 8. Discussion/Action: Funding for Penfax computer Change Requests (CR s) for Fiscal Year : Mr. Prince and Mrs. Rodrigues reported on the various provisions and enhancements to the pension computer system. A. CR #2018: Changes to Supplemental PEPRA benefit: MOTION by Vogel, Second by Bumgart and carried by a roll call vote of 7-1 (Yes: Vogel, Lang, Terrazas, Jauregui, Williams, Rhodes, Bumgart; No: McFetridge) the board approved CR #2018: Changes to the Supplemental PEPRA benefit. B. CR #2032: Add Deferred Retirement Projection: MOTION by Vogel, Second by Terrazas and carried by a unanimous roll call vote of members present, the board approved CR # 2032: Deferred Retirement Projection. C. CR #2064: New Ledger Report: MOTION by Terrazas, Second by Lang and carried by a roll call vote of 7-1 (Yes: Vogel, Lang, Terrazas, Jauregui, Williams, Rhodes, Bumgart; No: McFetridge) the board approved CR # 2064: New Ledger Report. D. CR# 2054: Maintenance and Support, Five-year agreement: MOTION by Terrazas, Second by McFetridge and carried by a roll call vote of 7-1 (Yes: Vogel, Lang, Terrazas, Jauregui, McFetridge, Rhodes, Bumgart; No: Williams) the board approved CR # 2054: PENFAX Maintenance and Support, July 1, 2014 June 30, E. CR# 2055: Business Continuity Five-year agreement: MOTION by Lang, Second by McFetridge and carried by a unanimous vote of members present, the board approved CR #2055: PENFAX Business Continuity, November 1, 2014 October 31, 2019.

5 May 21, 2014 CORRECTED MINUTES PAGE 5 9. Discussion/Action: Request for approval to issue Request For Proposal (RFP) for legal services: Mr. Prince discussed the proposal with the board. Chairman Jauregui appointed a volunteer committee of board members to present a recommendation at the next regular meeting, based on its review of proposals submitted by the law firms or individuals that respond. MOTION by Vogel, Second by Lang and carried by a unanimous vote of members present, the board approved the RFP for legal services and appointed board members volunteers Vogel, Holbrook, Terrazas and Williams as a sub-committee to evaluate and recommend to the board, the best legal candidate for the position. TERRAZAS LEFT AT 11:50 A.M. 10. Retirement Board Summer Meeting Schedule: MOTION by McFetridge, Second by Vogel and carried by a unanimous vote of members present, the board voted to cancel the regularly scheduled board meeting of July 16, 2014, and to reconvene on August 20, Board election: Instruct staff to request that the Board of Supervisors to direct the County Registrar of Voters to hold a special election for the 2 nd Seat on the Board of Retirement, to complete the remaining term of Board Member Lang, effective May 28, 2014, according to ICERS adopted procedures: MOTION by Vogel, Second by McFetridge and carried on the unanimous vote of members present, the board instructed staff to request that the Board of Supervisors direct the County Registrar of Voters to hold a special election for the 2 nd Seat on the Board of Retirement, to complete the remaining term of Board Member Lang, effective May 28, 2014, according to ICERS adopted procedures: DISCUSSION CALENDAR 12. Reports/Correspondence/Announcements: A. Retirement Administrator: 1. Market Value Graph of the Retirement System s Assets for April 2014: Mr. Prince reviewed the portfolio value for the period. 2. Book vs. Market Graph compares the Market Value of the system s assets to the Book Value of Assets for April 2014: Mr. Prince compared the value of the portfolio assets to the market. 3. Pension Administration Computer System (PAS) Status Report: Mr. Prince gave a progress report to the board.

6 May 21, 2014 CORRECTED MINUTES PAGE 6 4. Public Pension Consultants: Legislative Review of Proposed Legislation for 1937 Act Systems: Mr. Prince discussed the legislation update with the board. 5. SACRS Bulletin: Sustaining Public Defined Benefit (DB) Plans: Mr. Prince reviewed the SACRS correspondence with the board. 6. Update: Government Accounting Standards Board (GASB) 67 and 68 implementation task force: Mr. Prince reported on the task force meetings, which were attended by representatives from the County, Imperial County Transportation Commission (ICTC), and the Superior Court. Discussions to comply with regulation requirements are under way to contract assistance from the retirement system auditor and actuary. Further developments will be reported as they occur. 7. State Association of County Retirement Systems (SACRS) 2014 Spring Conference: Mr. Prince highlighted the points of interest at the conference. 8. Update: June 4, 2014 Retirement Board Governance Workshop: Mr. Prince announced that preparations were being finalized for the board governance workshop, which will be held on June 4, 2014, at the Fairfield Inn & Suites, El Centro, CA 9. Update: Retirement Board Election of Seat 3, : B. Board Members: Mr. Prince gave the board a brief update on the election, which will be held Tuesday, May 27, 2014 SACRS 2014 Spring Conference: Board Members Jauregui, Bumgart, and McFetridge commented favorably on the conference. C. County Counsel: 13. Convene to Closed Session: MOTION by Bumgart, Second by McFetridge and carried by a unanimous vote of members present, the board convened to Closed Session.

7 May 21, 2014 CORRECTED MINUTES PAGE 7 CLOSED SESSION Conference with Legal Counsel Existing Litigation (Government Code disability retirement applications relating to the following: (a).) Pompeyo Tabarez, Jr. Juliana Severt Geneva Matus 14. Announcement of Closed Session Action: OPEN SESSION Kathleen L. Kubler, Retirement Specialist announced the following: The board discussed but took no action on the Disability Retirement applications of Pompeyo Tabarez, Jr. Juliana Stewart, and Geneva Matus. 15. BUDGET: CONSENT AGENDA Approval of the following Budget claims for the fiscal years, to include Board Members in attendance at the 05/21/2014 meeting, an Administrative Budget Expense Summary, and a Treasurer s Cash Account Summary per Govt. Code & 31521: A. Administrative Budget B. Treasurer s Cash 16. Administrative Agenda: A. Enrollment of New Members to ICERS (23): B. Terminations (3): C. Service Retirement: 1. Victor Acevedo Information Systems 2. Robert R. Aguilar Behavioral Health 3. Jack Durrett Assessor

8 May 21, 2014 CORRECTED MINUTES PAGE 8 4. Sally Longoria Assessor 5. Martha Ramirez Public Works 6. Steve Solorio Public Works 7. Virginia Vasquez ICWDO 8. Patricia Cortes Deferred/General Social Services Effective Date: 03/26/ Sandra Krigbaum Public Health Effective Date: 03/29/ Isabel Lyon Public Health Effective Date: 03/29/2014 D. Deferred Intersystem: Jaime Hernandez Air Pollution Control Effective Date: 08/07/2013 E. Final Payment of Service Retirement Allowance & Death Benefit Per Govt. Code Section : June Woodall Deceased: 03/08/2014 F. 60% Continuance of Service Retirement Allowance per Govt. Code Section & Death Benefit: John Kennerson Deceased: 04/19/2014 G. Military Leave Buy-Back: Jose Montesinos Public Works

9 May 21, 2014 CORRECTED MINUTES PAGE 9 H. Medical Leave Buyback: Connie Barrington Library 17. Manager Reports: A. Dimensional: Account Summary for period ending March 31, 2014 B. Bradford & Marzec: Fixed Income Statement for period ending March 31, 2014 OTHER ITEMS 18. Previously Approved Seminars/Conferences (list available in Retirement office). ADJOURNMENT: Meeting was adjourned at 12:25 p.m. to June 4, 2014 at 8:30 a.m. NORMA K. JAUREGUI, Chairman ROBERT W. WILLIAMS, Secretary