December 28, 1999 - Board Agenda

CLOSED SESSION – Time Certain: 9:00 a.m.

Status Report on Disability Applications Pending

9912.C4

Conference with Counsel on Litigation – Teamsters Local 856 vs. Board of Retirement

PUBLIC SESSION - The Board will meet in Public Session upon Adjournment of the Closed Session.

9912.1

Call to Order

9912.2

Roll Call

9912.3

Approval of the Minutes

9912.4

Oral Communications

9912.5

Board and Management Support Services

9912.6

Approval or Acceptance of Reports

9912.7

Adjournment in Memory of Recently Deceased Members

December 28, 1999 - Minutes of the Board of Retirement

9912.1

Call to Order: Mr. Cosgrove called the Public Session of the Board of Retirement to order at 9:36 a.m., December 28, 1999, in SamCERA's Board Room, Suite 280, 702 Marshall, Redwood City.

9912.2

Roll Call: Mr. Bryan, Mr. Buffington, Mr. Carberry, Ms. Colson, Mr. Cosgrove, Mr. Cottle, Mr. McMahon & Ms. Stuart. Excused: Mr. Hoffman. Staff: Mr. McCausland, Ms. Manning & Mr. Clifton. Counsel: Ms. Carlson. Public: Retired - 3, Active - 1.

9912.3

Approval of the Minutes: Mr. Cottle noted that his firm was evaluating FinancialEngines for a client and felt it appropriate to make it available to SamCERA's members [9911.8.3]. Mr. McCausland reported that he had suggested a joint venture with the Deferred Compensation program to sponsor a master subscription to FinancialEngines for all members, but had not received any indication of interest on the County's part. Mr. Bryan and Mr. Buffington indicated that they would like to pursue the matter further. •Mr. Cottle noted that the Board's intent is for the review of trading costs to commence as soon as reasonably possible [9911.4.1]. Motion by Cottle, second by Bryan, carried unanimously, to approve the Minutes of November 23, 1999 as submitted.

9912.4.1

Oral Communications from the Board: Mr. Cottle reported that SamCERA was well represented at the Contra Costa CERA's Socially Responsible Investment Forum. Trustees reported that, in general, the forum was comprehensive and helpful, though Mr. McMahon noted a strong pro bias with only one speaker raising significant concerns. Mr. Cottle noted that the "Calvert Letter" provides a much narrower basis for social investing than it was purported to provide by most of the speakers. •Mr. Bryan and Mr. McMahon reported on their participation in the Public Funds Forum in San Francisco, with Mr. Bryan providing SamCERA's library with a copy of the forum's proceedings and Mr. McMahon reporting the SEC's proposed regulation of "pay to play" activities was very informative.

9912.4.2

Oral Communications from the Public: John Murphy, representing SCORPA, reminded the Board of its statutory investment authority.

9912.5.1

Status Report on Special Meeting for January 24, 2000 and Regular Meeting for January 25, 2000: Mr. Cottle and Mr. McCausland reported that all was in order. Motion by Carberry, second by Cosgrove, carried unanimously, to authorize the Chief Executive Officer to contract with the San Mateo Marriott for meeting facilities and meals for the Board's planning retreat. Motion by Bryan, second by Carberry, carried five ayes to three noes (Buffington, Colson and Cosgrove) to approve the agenda with the addition of Ms. Smith as a co-presenter with Mr. McCausland.

9912.6.1

Report of Actions Taken in Closed Session: Mr. McCausland reported that Mr. Cosgrove had called the Board into Closed Session at 9:02 a.m. with all trustees present for Roll Call in attendance. The application of Robert Morse was not presented, as the Medical Advisor's recommendation was not yet submitted. The Board deferred action on the application of Genoveva Mercado and instructed staff to obtain additional information on the medical treatment options available to the applicant. The Board approved the Service Connected Disability application of Kenneth Hawthorne. The Board approved the Nonservice Connected Disability application of Robert Martinson. The Board received a Status Report on Disability Applications Pending. Counsel advised the Board that briefs are due to the judge on March 3, 2000 in re the coordinated class action Ventura litigation. There being no further business, Mr. Cosgrove adjourned the Closed Session at 9:35 a.m.

9912.6.2

Audit Committee Report: The Audit Committee has not met since its last report.

9912.6.3

Chief Executive Officer's Report: Mr. McCausland reported that he had received a letter of resignation from Carolyn Smith of Watson Wyatt Investment Consulting which he had distributed to the Board. Mr. Carberry expressed his concern that Ms. Smith had not discussed her plans with the Board prior to resigning. Mr. Bryan noted that he had understood Ms. Smith's frustration over the past year with the Board's failure to act on her recommendations, but that he was sorry that she had decided to move on. The Board speculated at length on the factors influencing Ms. Smith's decision and on whether or not it had been the intention of a majority of the Board to issue a request for proposals. Mr. Cosgrove indicated that once an individual or firm had taken such a step it was time for the Board to move on.

Mr. McCausland reported that Lonni Hocker had completed a successful remote site, cold start, disaster recovery exercise, which had started with plugging a brand new file server into the wall, installing all SamCERA software and data files and running all mission critical processes.

Mr. McCausland asked the trustees to convey their appreciation to Susie Lamica for single-handedly initiating a raffle as part of SamCERA's participation in the County's charitable giving campaign and for decorating the office for the holidays.

Mr. McCausland reported that staff will hold a planning retreat on December 29^th to set out its proposed priorities for next year.

Mr. McCausland reported that SamCERA's web site is online at www.samcera.org with a wealth of information for SamCERA's members.

Mr. McCausland urges the trustees to participate in the first CALAPRS Trustee Roundtable in South San Francisco on January 21^st.

9912.6.4

County Counsel's Report: None.

9912.6.5

Investment & Finance Report: Mr. Clifton reported that all Y2K preparedness efforts were in place. •Mr. Buffington asked Mr. Clifton to report on GASB 34's impact on SamCERA's Comprehensive Annual Financial Report. Mr. Clifton reported that GASB 34 does not apply to SamCERA. •Mr. Clifton distributed a State Street Report for periods ending November 30, 1999, but noting that State Street only has Watson Wyatt's quarterly return data and therefore is not yet able to accurately compute returns other than at quarter end. Staff is working with State Street to resolve the problem.

9912.6.6

Consent Calendar: Motion by Bryan, second by Carberry, carried unanimously, to approve the Consent Calendar as submitted.

Service Retirements:

Adjournment in Memory of the following Deceased Members: There being no further business, Mr. Cosgrove adjourned the meeting at 11:15 a.m. in memory of the following recently deceased members: