May 25, 2004 – Board Agenda

  Closed Session – The Board may meet in Closed Session prior to adjournment

C1

Public Employment—Chief Executive Officer

Public Session – The Board will meet in Public Session at 9:00 a.m.

1.

Call to Order

2.

Roll Call

3.

Approval of the Minutes

4.

Oral Communications

4.1

Oral Communications From the Board

4.2

Oral Communications From the Public

Matters Set for a Time Certain

Times listed under this section are approximate. The Board will make every effort to adhere to the times listed, but in some cases, items may not be heard precisely at the time scheduled. In no case will any item be heard before the time it is scheduled.

9:15am

Selection of International Equity Core Growth Managers (Item 6.3)

10:45 am

Selection of International Equity Core Value Managers (Item 6.4)

1:00 pm

Adoption of Consent Calendar (Item 5.1)

1:15 pm

Continuation of Interest Crediting Workshop (Item 5.3)

5.

Benefit & Actuarial Services

5.1

Adoption of Consent Calendar  (Special Order at 1:00 p.m.)

5.2

Consideration of items removed from Consent Calendar

5.3

Continuation of Interest Crediting Workshop Including Issues Related to the Use of Undistributed Earnings (Special Order at 1:15 p.m.)

5.4

Adoption of Interest Crediting Policy

5.5

Consideration of proposal to fund taxable Medicare Part-B Premium Reimbursement Program

5.6

Approval of actuarial services contract with Public Pension Professionals (P³)

6.

Investment Services*

6.1

Acceptance of Monthly Portfolio Performance Report

6.2

Acceptance of Quarterly Investment Performance Analysis for periods ending March 31, 2004

6.3

Selection of International Equity Core Growth Managers (Special Order at 9:15 a.m.)

6.4

Selection of International Equity Core Value Managers  (Special Order at 10:45 a.m.)

**

6.5

Selection of Finalists for SamCERA’s Domestic Enhanced Equity Manager Searches

6.6

Approval of the Structure for SamCERA’s Real Estate Allocation – Commingled Core Real Estate Fund

6.7

Approval of Topics for Investment Consultant Review – Strategic Investment Solutions

6.8

Acceptance of Bank of Ireland Asset Management’s Compliance Certification Statement

*

**

The Investment Committee will meet at 8:00 a.m. May 24th

The Investment Committee will review all semi-finalists in detail and make a recommendation to the Board. Finalist selection will be at the Board.

7.

Board & Management Support Services

7.1

Acceptance of Monthly Financial Reports

7.2

Approval of Extension of Technical Writing Contract

7.3

Approval of SamCERA’s Fiscal Year 2004/2005 Budget

7.4

Approval of Fiduciary Liability Insurance Premium Payment

7.5

Appointment of Ad Hoc Financial Audit Committee

8.

Approval or Acceptance of Reports

8.1

Chief Executive Officer's Report

8.2

Assistant Executive Officer’s Report

8.3

Investment & Finance Manager’s Report

8.4

County Counsel's Report

8.5

Report on Actions taken in Closed Session

9.

Adjournment

May 25, 2004 – Board Minutes, as corrected

0405.1

Call to Order:  Ms. Colson, Chair, called the Public Session of the Board of Retirement to order at 9:08 a.m., May 25, 2004 in SamCERA’s Board Room, Suite 125, 100 Marine Parkway, Redwood Shores.

0405.2

Roll Call:  Ms. Colson, Mr. Bryan (dep 4:45pm), Mr. Hooley, Mr. McMahon, Ms. Tashman, Ms. Stuart & Mr. Lewis (arr ~11:45am, dep ~1:00 pm).  Ms. Arnott for Mr. Buffington.  Excused: Ms. Salas.  Staff:  Mr. McCausland. Mr. Hood, Mr. Clifton & Ms. Lamica.  Counsel:  Ms. Carlson.  Consultants:  Dr. Fracchia, Mr. Summer, Ms. Van Valer, Ms. Jadallah & Mr. Thomas.  Custodian: Mr. Azfar.  Retirees: 3, County: 1. 

0405.3

Approval of the Minutes:  Mr. Hood submitted the following correction to the Minutes:  0404.5.2 L3:“developed lung disease derived from ­second hand cigarette smoke smoking and subsequently experienced…”.  Motion by Stuart, second by Arnott, carried unanimously (7/0) to approve the Minutes of April 27, 2004 as corrected.

0405.4.1

Oral Communications From the Board:  Ms. Stuart reported that she, along with several other Board members, attended SACRS earlier in the month.  She noted that the event, which was celebrating its 50^th anniversary, had good speakers and was worth attending.  Mr. Clifton indicated that SACRS is currently changing its programming format and undergoing major transition.  Ms. Colson requested that individuals who attended the SACRS conference email her their comments and suggestions for improvements.  She will condense those comments and forward them to Casey Jones, SACRS President, in order to better assist the improvement of the program.

Ms. Stuart also reported that she, along with eight other retirees, met with Supervisor Jerry Hill to discuss the suspension of the Medicare Part-B Reimbursement Program.  She stated that they had asked Mr. Hill several questions and requested that he consider lowering the funding ratio limit to 70-75%.  She also reported that she and the other retirees plan on meeting with the rest of the Board of Supervisors soon.

0405.4.2

Oral Communications From the Public:  John Murphy, on his own behalf, noted that he is currently one of the three retiree candidates for the eighth seat on the Board.  The other two candidates are Bette Perroton Stuart and Ted Kai.  Mr. Murphy then clarified his comments made in earlier Board meetings regarding the Board’s treatment of retiree issues.  He explained that his comments were not aimed at the Board members’ ability to handle the Association’s investments nor its administration, but that they were aimed at the trustees’ reluctance to advocate the continuation of Medicare Part-B reimbursements and to appoint a retiree alternate as permitted by the 1937 Act.  Mr. Murphy distributed materials regarding escalating retiree health costs and his and Ms. Stuart’s statements of candidacy for the June 14^th election.

Ms. Colson then took up agenda item 6.4.

0405.5

Benefit & Actuarial Services

0405.5.1

Adoption of Consent Calendar:  Without objection, Ms. Colson removed the application of Margarita Krebs (Staff) from the Consent Calendar for consideration at next month’s Board meeting.  Motion by Stuart, second by Bryan, carried unanimously (7/0) to adopt the Consent Calendar as amended, as follows:

Disability Retirements:

The Board finds that Wade Perritt is unable to perform his duties as a Property Officer II, finds that his disability is not Service-connected, DENIES his application for Service-connected Disability Retirement and, GRANTS him a Non-service Connected Disability.

The Board finds that Juanita Halpin is unable to perform her duties as a Telephone Operator, finds that her disability is Service-connected and, GRANTS her application for a Service-connected Disability.

The Board finds that Shirley Azares is unable to perform her duties as a Staff Nurse, finds that her disability is Service-connected and, GRANTS her application for a Service-connected Disability.

The Board terminates the application for Service-connectedDisability for EstelleBertolucci,based on her request to rescind her application.

The Board terminates the application for Service-connected Disability for Paul Feyling, based on his request to rescind his application.

Routine Actions taken by staff pursuant to the Board's Delegation of Authority and the Regulations of the Board of Retirement:

Service Retirements:

Miller, Sharon

April 1, 2004

Health Services Department

Sochaki, Marcia

April 1, 2004

Assessor’s Office

Nolan, Michael

April 14, 2004 (from deferred)

Sheriff’s Department

Patterson, Carol

May 1, 2004

San Mateo County General Hospital

Continuance of Benefits:

Whitfield, Bernice

Beneficiary of William

Blyth, Jannette

Beneficiary of Edward

Deferred Retirements:

April, 2004

Conklin, Bryan

G2 Vested

Thompson-Conklin, Cathryn

G2 vested

Tolentino, Irma

G2 vested

Refunds For May 2004:

Abdullah, Halimah

G4 non vested

$4,022.47

Bostow, Susan

G4 non vested

$10,969.01

Castillo, Rosa

G4 non vested

$1,293.69

Collins, Thomas

G4 non vested

$775.86

Doolin, George

S4 non vested

$7,427.96

Irving, James

S4 non vested

$7,440.27

Kraft, Lori

G4 non vested

$2,437.77

Parsad, Shamarlata

G4 non vested

$2,628.16

Williams, Shante

S4 non vested

$7,923.64

Wong, Johanna

P4 non vested

$8,972.21

Goncharoff, David

G4 non vested (Active Death)

$46,250.25

Johnson, Cheryl

G2 vested (Deferred Death)

$32,756.29

TOTAL REFUNDS:

$132,897.58

Rollovers For May 2004:

Gerges, Samia

G4 non vested

$5,094.62

Gignoux, Barbara

G4 non vested

$12,178.28

Peardon, Marla

G4 non vested

$9,961.11

Reyes, Farah

G4 non vested

$5,011.41

Stevens, Tracy

G4 non vested

$4,874.83

Truong, Linda

G4 non vested

$790.10

Zalmai, Megan

G4 vested

$24,869.34

TOTAL ROLLOVERS:

$62,779.69

0405.5.2

Consideration of items removed from Consent Calendar:  None.

0405.5.3

Continuation of Interest Crediting Workshop Including Issues Related to the Use of Undistributed Earnings:  Ira Summer and Deanna Van Valer from Public Pension Professionals, continued the interest crediting workshop from last month’s Board meeting and reviewed the elements of the proposed interest crediting policy.  They also began a discussion of alternative uses of undistributed earnings.  The Board suggested refinements to the interest crediting policy and provided direction for the drafting of its undistributed earnings policy.

0405.5.4

Adoption of Interest Crediting Policy:  Without objection, Ms. Colson postponed action on this agenda item until the June Board Meeting.

0405.5.5

Consideration of proposal to fund taxable Medicare Part-B Premium Reimbursement Program:  Ms. Stuart reminded the Board that several retirees met with Supervisor Hill and that they will make appointments to meet all members of the Board of Supervisors before the next Board meeting. 

Mr. McCausland noted that the five-year smoothing of actuarial gains and losses, which is an integral part of the proposed interest crediting policy, will not generate smoothed earnings in excess of 8% this June 30^th.  He noted that the ’37 Act prohibits the payment of ad hoc benefits in the absence of excess earnings. 

Ms. Carlson noted that there had always been two prerequisites for Medicare Part-B reimbursements:  the 80% funding ratio, as required by the Board of Supervisors, and excess earnings, as required by the ’37 Act.

In response to questions, Mr. Summer indicated that he will attempt to calculate the investment return required to generate excess earnings by December 31^st in order to better determine the probability of such an event occurring.  He noted that when excess earnings reappear, the Board can immediately set aside funds for Medicare Part-B reimbursements. 

Mr. Hooley requested that further discussion on this agenda item be deferred until the adoption of the interest crediting and undistributed earnings policies.

0405.5.6

Approval of actuarial services contract with Public Pension Professionals (P³):  Mr. Hood noted a proposed change in the services contract with P³, based on Mr. Summer’s request that SamCERA reimburse him for the cost of the additional premium incurred by his raising his limits to $10 million Professional Liability/Errors and Omissions Insurance, since SamCERA is P³’s first client to require such insurance. 

Mr. McMahon asked that the Minutes reflect that his research indicates that Milliman has a large professional staff in the Pacific Northwest and is insured for $100 million.  Mr. McMahon further asked that the Minutes reflect that he opposes the selection of a boutique actuarial firm with only $5 million in insurance that is asking SamCERA to reimburse it for the cost of purchasing additional insurance, when in his view, Milliman is a less expensive and better resourced alternative.  Ms. Colson noted that the Board had considered the relative merits of the two firms at its last meeting and that the contract was now before the Board for review and approval.

Without objection, Ms. Colson put over the insurance amendment to the June Board meeting when an exact cost of the $10 million liability insurance can be discerned. 

Motion by Bryan, second by Arnott, carried with 6 ayes (Colson, Bryan, Arnott, Hooley, Tashman & Stuart) to one no (McMahon) to adopt Resolution 03-04-15,approving the actuarial services contract with Public Pension Professionals (P³), subject to Board approval of the insurance issue:

Whereas, Article XVI, §17(e) of the Constitution of the State of California vests the Board with “the sole and exclusive power to provide for actuarial services in order to assure the competency of the assets of the...system”; and

Whereas, Government Code §31453 requires periodic valuations of SamCERA’s actuarial soundness and §31596.1(a) provides for the payment of “the costs, as approved by the Board, of actuarial valuations and services rendered pursuant to §31453"; and

Whereas, Board of Retirement Resolution Number 03-04-04 authorized the staff to issue a Request for Proposal for Actuarial Services; and

Whereas, On February 22, 2004, the Board reviewed proposals and interviewed representatives from five firms and, on April 24, 2004, selected Public Pension Professionals, Inc to provide actuarial services under the terms of a three year contract which commences on June 1, 2004; and

Whereas, County Counsel has approved the contract as to form.  Therefore, be it

Resolved, that the Board hereby approves the contract between the Board and Public Pension Professionals, Inc for a term of three years, cancelable by either party on thirty days notice.  Be it further

Resolved, that the Board hereby approves the fees as specified in the contract and authorizes the disbursement of funds as provided for in §31596.1 in accordance with SamCERA’s internal controls.  Be it further

Resolved, that the Board hereby authorizes the Chair to execute the contract on behalf of the Board.   Be it further

Resolved, that the Board hereby designates the Chief Executive Office as its designee to perform those functions so identified in the contract and hereby authorizes the Chief Executive Office to take all actions necessary to initiate, implement and monitor assignments, approve payments and provide the Board with timely reports regarding the progress and satisfactory completion of the assignments authorized pursuant to the contract.  Be it further

Resolved, that the Board hereby reserves to itself sole authority to accept, modify or reject the recommendations which the actuary may present from time to time pursuant to the provisions of the contract.

0405.6

Investment Services

0405.6.1

Acceptance of Monthly Portfolio Performance Report:  Mr. Clifton presented the monthly performance review for the period ending April 30, 2004.  He noted a downtrend with SamCERA’s Total Plan Return falling for the second straight month, -2.23% in April and -0.37% in March.  Positively, Mr. Clifton also reported that SamCERA’s fiscal-year-to-date return is 12.87%, which is well ahead of the actuarial interest rate.

$746,837,733

-2.51%

27.26%

0.50%

International Equity

        223,092,155

-1.66%

33.03%

0.21%

Total Equity

969,929,888

-2.32%

28.53%

0.16%

Fixed Income

381,144,972

-2.40%

2.61%

6.74%

Real Estate Aggregate

59,238,981

0.24%

9.74%

10.33%

Cash Equivalents

544,542

0.17%

2.39%

Total Fund

$1,410,858,382

-2.23%

19.48%

3.50%

Benchmark

-2.45%

20.40%

2.59%

Without objection, Ms. Colson accepted the report.

0405.6.2

Acceptance of Quarterly Investment Performance Analysis for periods ending March 31, 2004: Mr. Clifton presented the quarterly review to the Board, noting that the Association currently trails its policy benchmark.  Mr. Clifton reported that the domestic fixed income manager performed an excellent job for the period, ranking in the 5^th percentile among other core bond managers.  He noted that all portfolios contributed to the positive return, with the exception of the underperformance by the international equity manager, who ranked in the bottom fifth among its peers.  Mr. Bryan noted that the composite fund has done well for the year, ranking in the 40^th percentile, but could have done much better had it not been for Bank of Ireland’s continual underperformance.  Without objection, Ms. Colson accepted the report.

0405.6.3

Selection of International Equity Core Growth Managers:  The Board conducted interviews of the two finalists in the International Equity Core Growth Manager asset class.  Each firm provided a 30-minute overview of their proposal and then responded to 15 minutes of questions.

Arthur J. Gromadzki and Fernando Hernandez represented Capital Guardian Trust Company. 

Richard Pell and Melvin Lindsey represented Julius Baer Investment Management.

After extensive discussion, motion by Arnott, second by Stuart, carried unanimously (8/0) to select Julius Baer Investment Management as the Association’s International Equity Core Growth Manager subject to further due diligence.    

0405.6.4

Selection of International Equity Core Value Managers:  The Board conducted interviews of the two finalists in the International Equity Core Value Manager asset class.  Each firm provided a 30-minute overview of their proposal and then responded to 15 minutes of questions. 

Clive Gilmore and James Brecker represented Delaware International Advisors, Ltd.

Robert Vishnay and Tremaine Atkinson represented LSV Asset Management.

After extensive discussion, motion by Arnott, second by Bryan, carried with 6 ayes (Arnott, Bryan, Colson, Lewis, Stuart & Tashman) to 2 noes (Hooley & McMahon) to select Delaware International Advisors, Ltd. as the Association’s International Equity Core Value Manager subject to further due diligence.

0405.6.5

Selection of Finalists for SamCERA’s Domestic Enhanced Equity Manager Searches:  Mr. Clifton reported that the Investment Committee had extensively discussed the pros and cons of each of the semi-finalists for both the Domestic Large Cap and Small Cap Enhanced Equity Manager Searches.  He reported that the Investment Committee recommended (1) Barclays Global Investors and (2) Goldman Sachs Asset Management as the finalists for the Domestic Large Cap Enhanced Index and (1) Goldman Sachs Asset Management and (2) JPMorgan Fleming Asset Management for Domestic Small Cap Enhanced Index.  Motion by Bryan, second by Arnott, carried unanimously (7/0) to accept the Investment Committee’s recommendation on final candidates for the Domestic Large Cap and Small Cap Enhanced mandates.

0405.6.6

Approval of the Structure for SamCERA’s Real Estate Allocation – Commingled Core Real Estate Fund:  Ms. Carlson reported that she had spoken with INVESCO’s attorneys earlier in the morning to discuss several issues regarding INVESCO’s Private Placement Memorandum (PPM).  She noted that the percentage of investors required to remove the Fund Advisor is being lowered from an initial 75% to 60% in the occurrence of an “uncured breach”.  Ms. Colson noted the Fund still requires 75% to remove without cause.  Mr. Clifton noted that the Board can opt to undergo the RFP process with the assistance of a real estate advisor. 

Without objection, Ms. Colson deferred the discussion regarding INVESCO’s Core Equity Fund and requested Staff to provide an update on the Fund’s current status of investors, changes in documentation and any other pertinent information at next month’s Board meeting.

0405.6.7

Approval of Topics for Investment Consultant Review – Strategic Investment Solutions:  Mr. Clifton presented a list of suggested questions for Strategic Investment Solutions’ annual review.  He noted that some questions were added regarding how SIS rated its managers, its manager interview process, its opinion on the Board’s speed and decisions as well as its view on transition management.  Mr. Clifton also requested that trustees complete SamCERA’s Investment Consultant Performance Evaluation Form with scoring and comments.  He will summarize and compare the Board’s results with the Consultant’s for the annual review.  Without objection, Ms. Colson accepted the report. 

0405.6.8

Acceptance of Bank of Ireland Asset Management’s Compliance Certification Statement:  Mr. Clifton presented Bank of Ireland Asset Management’s statement.  Without objection, Ms. Colson accepted BIAM’s Compliance Certification Statement.

0405.7

Board & Management Support Services

0405.7.1

Acceptance of Monthly Financial Reports:  Mr. Clifton presented the Preliminary Monthly Financial Report for the Period Ending April 30, 2004.  He stated that last year’s County prepaid-contributions fell short approximately $6 million due to a higher than estimated annual payroll, with the true-up payment being reflected in next month’s financial report.  Without objection, Ms. Colson accepted the report. 

0405.7.2

Approval of Extension of Technical Writing Contract:  Mr. Hood reported that MaryAnn Gutoff’s contract is set to expire June 30, 2004.  The Board has earmarked $75,000 for her technical writing services, of which half has been expended.  He stated that Ms. Gutoff’s services will prove essential for writing the research and calculation procedures for completing the Ventura Implementation project as well as writing the procedures and workflow documentation for use in the Electronic Document Manangement System (EDMS).  Mr. Hood noted that staff recommends extending the term of Ms. Gutoff’s contract without increasing the initial $75,000 appropriation.  Motion by Bryan, second by Stuart, carried unanimously (7/0) to approve the extension of MaryAnn Gutoff’s Technical Writing Contract until June 30, 2005.

0405.7.3

Approval of SamCERA’s Fiscal Year 2004/2005 Budget:  Mr. Clifton noted the three additional initiatives to the Budget including (1) a strategic planning session, (2) the development of monthly staffing reports, and (3) laptop notebooks to be provided to each trustee on the Board.  He also noted that there have been two amendments to the VenturaBudget with an increase in budget for both Salaries & Benefits and Services & Supplies.  Ms. Arnott expressed her preference that the Staff include a copy of the Budget document indicating the actual revisions so that trustees can review the changes made.  In response to a question by Ms. Arnott, Mr. Hood clarified that the Budget document should indicate the hiring of 1 permanent Retirement Analyst, 1 unclassified Retirement Analyst, and 2 Extra Help Office Specialists to assist with the Ventura implementation.  Ms. Arnott also requested that Staff change the language in the document regarding the creation of the Assistant Executive Officer position and the elimination of the Information Technology Analyst position which will require no additional funding.

Motion by Hooley, second by Tashman, carried unanimously (7/0) to adopt Resolution 03-04-16, approving SamCERA’s Fiscal 2004/2005 Budget, as follows:

Whereas, Government Code §31580.2 vests authority in the Board of Retirement to ...annually adopt a budget covering the entire expense of administration of the retirement system which expense shall be charged against the earnings of the retirement fund; and

Whereas, Government Code §31580.2 requires that ...the expense incurred in any year shall not exceed eighteen-hundredths of 1 percent of the total assets of the retirement system; and

Whereas, the Retirement Fund had total assets with a market value of approximately $1,456.7 million on February 29, 2004; and

Whereas, the Investment & Finance Manager has recommended a budget for the next fiscal year, which the Board has reviewed and revised as necessary.  Therefore, be it

Resolved, that the Board hereby adopts the following Budget to cover the entire expense of the administration of the retirement system for the period specified, which expenses shall be charged against the earnings of the retirement fund:                                       

Resolved, that the Chief Executive Officer is hereby authorized to implement the expenditure of funds authorized by this approved Budget in accordance with his Delegation of Authority; be it further

Resolved, that, his Delegation of Authority notwithstanding, the Chief Executive Officer is hereby specifically authorized to approve the expenditure of funds from this budget for the annual maintenance and enhancement of PensionGold Version 1; be it further 

Resolved, that, his Delegation of Authority notwithstanding, the Chief Executive Officer is hereby specifically authorized to approve the expenditure of funds from this budget for the purchase fiduciary liability insurance coverage with the assistance of the County’s Risk Manager; be it further

Resolved, that the Controller or the Custodian is hereby authorized to disburse funds on behalf of the Board for expenditures which are in accordance with this adopted Budget.

Motion by Hooley, second by Tashman, carried unanimously (7/0) to amend Resolution 03-04-13, to approve the Ventura implementation schedule and to authorize the hiring of Ventura personnel:

Whereas,  On March 19, 1995, Teamsters Local 568 brought a writ of mandate against the Board of Retirement seeking an order from the Court requiring the recalculation of pension benefits in light of the Supreme Court’s decision in Ventura County Deputy Sheriff’s Association vs. Board of Retirement of the Ventura County Employees’ Retirement Association “Ventura”

Whereas, The Association retained an actuary to estimate the financial impact of a range of possible decisions in the Teamsters Local 856 litigation. A $32,145,000 reserve, called the Ventura Reserve, has been established to set aside funds for this contingent liability and its implementation.; and

Whereas, judgment has been entered in the Teamsters Local 856 that requires the recalculation of pension benefits of members whose applicable final compensation measurement period occurred in whole or in part prior to October 1, 1997 and who were receiving benefits on or after March 19, 1995, to be consistent with the requirements of the decision in Ventura. 

Therefore, be it

Resolved, that the Board hereby adopts the following budget to cover the entire expense of the implementation of Teamsters Local 856 vs. Board of Retirement, San Mateo County, which expenses shall be charged against the Ventura Reserve:

Resolved, that the Chief Executive Officer is hereby authorized to implement the expenditure of funds authorized by this approved Budget in accordance with his Delegation of Authority; be it further

Resolved, that the Controller or the Custodian is hereby authorized to disburse funds on behalf of the Board for expenditures which are in accordance with this adopted Budget.

0405.7.4

Approval of Fiduciary Liability Insurance Premium Payment:  Motion by Arnott, second by Tashman, carried unanimously (6/0) to authorize the Chief Executive Officer to pay the premium for SamCERA’s fiduciary liability insurance for the coming year.

0405.7.5

Appointment of Ad Hoc Financial Audit Committee:  Without objection, Ms. Colson announced that she will appoint an Ad Hoc Financial Audit Committee of Kenneth Lewis, Emily Tashman and Lee Buffington to oversee SamCERA’s June 30, 2004 Audit.

0405.8

Approval or Acceptance of Reports

0405.8.1

Chief Executive Officer's Report:  Mr. McCausland announced his retirement as CEO of SamCERA effective March 31, 2005.  He stated that a press release regarding his retirement will be given to the public at the conclusion of the Board meeting. 

Mr. McCausland also reported that the County had been accumulating reserves during the dot.com boom, which is helping the County survive the current State fiscal crisis.  Even so, 106 positions are scheduled for deletion in next fiscal year’s budget.  93 of the targeted positions are currently vacant.

0405.8.2

Assistant Executive Officers’ Report:  Mr. Hood distributed the certification of qualified candidates for the election for the 3^rd and 8^th member on the Board.  The election will be held on June 14^th.  He also distributed details of SamCERA’s VenturaImplementation process. 

Mr. Hood provided a preliminary staff activities report to the Board.  Ms. Colson noted that the visual and numeric report will be helpful to the Board in understanding the operations of the office.  Lastly, Mr. Hood stated that Ira Summer had given a helpful presentation at SACRS comparing 1937 Retirement Act systems.

0405.8.3

Investment & Finance Manager’s Report:  Mr. Clifton distributed reports for Deutsche Asset Management and Bank of Ireland Asset Management.  He stated that DeAM is still under SEC investigation and will keep the Board apprised of any developments.  Mr. Clifton reported that he had spoken with DeAM the week prior to the Board meeting and they had informed him that they are currently releasing staff members in Australia for illegal trading.  Mr. Clifton also noted that SIS had sent him an email on May 10^th informing the Board of the acquisition of Delaware International Advisors (DIA) by Atlantic Value Partners. 

He then reported that, having responded to a questionnaire from the Counsel for Responsible Public Investment (CRPI), they have requested that the Board afford them the opportunity to give a 10 minute presentation regarding public policy and corporate governance issues.  Without objection, Ms. Colson noted that a written report would be of more value to the trustees, rather than a presentation.  After reviewing the report, the Board can then decide if it wants to invite CRPI to make a presentation.

0405.8.4

County Counsel's Report:  None.

0405.8.5

Report on Actions taken in Closed Session:  Mr. McCausland reported that Ms. Colson convened the Board in Closed Session at ~12:30 p.m. with 8 trustees present.  The Board authorized the Chair to sign Mr. McCausland’s retirement agreement, as noted in 0405.8.1.  There being no further business, Ms. Colson adjourned the Closed Session at ~1:00 p.m. 

0405.9

Adjournment in Memory of the following Deceased Members:  There being no further business, Ms. Colson adjourned the meeting at 4:55 pm, in memory of the following deceased members:

Loconte, Mary

January 15, 2004

Chope Hospital

Howell, Jean

April 8, 2004

Beneficiary Of Eugene

Moosburgger, Elaine

April 10, 2004

Chope Hospital

Fulford, Joseph

April 18, 2004

Beneficiary Of Janice

Blyth, Edward

April 23, 2004

Assessor’s Office

Bradley, Helen

April 19, 2004

Mental Health Department

Lang, Lou Jean

April 26, 2004

Coroner’s Office

Selzer, Jadwiga W. M.D.

April 26, 2004

Health Department

Young, Thelma

May 3, 2004

District Attorney Office