6

FRESNO COUNTY BOARD OF RETIREMENT

December 7, 2005

Trustees Present:

Michael Cardenas Vicki Crow

Vera Dominguez Steven Jolly

Phil Larson A. Papaleo

John P. Souza Michael Thobe

Trustees Absent:

Stephanie Savrnoch

Others Present:

Ronald S. Frye, Alternate Board Trustee

Barbara Booth Grunwald, Deputy County Counsel

Scott Garrett, Wurts & Associates

Lou Paletta, Lone Star Funds

Michael Cunningham, FCERA Retiree

Bill Storey, NCFPD

Conor Hinds, Senior Accountant

Roberto L. Peña, Retirement Administrator

Becky Van Wyk, Chief Accountant

Elizabeth Avalos, Administrative Secretary

1.  Call to Order

Chair Souza called the meeting to order at 9:14 AM.

2.  Presentation of Plaque to Michael Thobe for over 3 years of service as Trustee for the Board of Retirement of the Fresno County Employees’ Retirement Association

Mr. Peña thanked Trustee Thobe for his years of service and presented him with a plaque.

3.  Public Presentations

None.

Consent Agenda/Opportunity for Public Comment:

Mr. Peña pulled items 4, 9, 10, 14, and 15.

Trustee Thobe pulled item 11.

A motion was made by Trustee Crow, seconded by Trustee Dominguez to approve

Consent Agenda items 5-8, 12 & 13. VOTE: Unanimous (Absent – Savrnoch, Larson)

*4. Approval of the November 16, 2005 Retirement Board Regular Meeting Minutes

Mr. Peña explained to the Board that Trustee Frye attended the November 16, 2005 Regular Board meeting, but had not been listed as present.

The Board directed Administration to correct the minutes to reflect Trustee Frye as present.

RECEIVED AND FILED; APPROVED

*5. Retirements

RECEIVED AND FILED; APPROVED

George L. Alaniz / VMC, Deferred / 5.23
Cheryl N. Charter / Behavioral Health / 27.15
Gloria Coffland / FCOE / 30.96
Frank Escovedo / VMC, Deferred / 24.43
Linda Ann Guthrie / Sheriff / 23.21
Maureen Hernandez-Martinez / Probation, Deferred / 7.00
Betty Hodges / Child Support Services / 23.27
Lawrence Jones / Superior Court, Deferred / 11.57
Jack E. Jordan / Library, Deferred / 5.91
Michael Leonardo / Sheriff / 30.35
Susan Ann Leonardo / Sheriff / 28.93
Phillip F. Plettner / Community Health / 32.83
Betty L. Reitz / Sheriff / 19.24
Kathleen M. Rust / Child Support Services / 21.92
Josephine L. Son / Community Health / 16.94
Sadie Stanowski / General Services / 20.69
Kenneth C. Stuart / Community Health, Deferred / 3.47
Marjorie Torres / Child Support Services, Deferred / 14.41
Takashi Tsuda / E & TA Services, Deferred / 0.49
Alice Elaine Young / E & TA Services / 20.26

*6. Disability Retirements

RECEIVED AND FILED; APPROVED

Thelma B. Vasquez / Sheriff / 13.05
Dave Henson / Fleet Services / 10.20

*7. Most recent investment returns, performance summaries and general investment information from investment managers

RECEIVED AND FILED

*8. Public Records Requests and/or Retirement Related Information Requests from Cynthia Ellis, Retired FCERA Member; Jake Petrosino, PERS Retirement Betterment Committee, Inc.; Betsy Lindegren, Retired FCERA Member; and Lisa Albrecht, Lipper, Inc.

RECEIVED AND FILED

*9. Report from Roberto L. Peña, Retirement Administrator on attendance at the SACRS 2005 Fall Conference

Mr. Peña provided the Trustees with material from the SACRS 2005 Fall Conference and informed them that additional information was available upon request.

RECEIVED AND FILED

*10. Final Actuarial Study on the impact of the Richman Proposal on the FCERA pension plan

Mr. Peña reminded the Board of a previous presentation by Ira Summer of Public Pension Professionals and stated that the final actuarial study would be provided to the Board of Supervisors.

RECEIVED AND FILED

*11. Communication from the Redevelopment Agency of the City of Fresno regarding the Chinatown Expanded Area Community Redevelopment Plan

Trustees Souza and Thobe commented on a second redevelopment project in the FCERA area and requested that Administration to gather information that may impact FCERA.

RECEIVED AND FILED

*12. Communications from John Lee, Wurts & Associates regarding the Independent Consultants Cooperative Universe (ICC)

RECEIVED AND FILED

*13. Correspondence and literature from Michael Ruge of Morgan Stanley regarding the October 5-6, 2005 Board Retreat presentation on Managed Futures

RECEIVED AND FILED

*14. Board of Retirement Regular Meeting schedule for 2006

Mr. Peña requested the Board’s input on rescheduling the October Retreat meeting. Administration will present the Trustees with optional dates for consideration and approval.

RECEIVED AND FILED; APPROVED

*15. Request by the Zoo Authority to install equipment necessary to provide streaming audio during Zoo Authority Board meetings

Ms. Van Wyk detailed the process necessary to provide streaming audio and informed the Board that it would also be available for Retirement Board meetings.

A motion was made by Trustee Dominguez, seconded by Trustee Thobe to approve Consent Agenda items 4, 9, 10, 14, & 15. VOTE: Unanimous (Absent – Savrnoch, Larson)

RECEIVED AND FILED; APPROVED

16.  Performance and Economic Summary report presented by, Lou Paletta, Partner and Director of Investor Relations - Lone Star Funds – Private Market Manager

Mr. Paletta gave a presentation on the Performance and Economic Summary.

RECEIVED AND FILED

17.  Presentation of the September 30, 2005 Investment Performance Review presented by Scott Garrett, Wurts & Associates

Mr. Garrett gave a presentation on the September 30, 2005 Investment Performance Review.

RECEIVED AND FILED

Trustee Larson joined the Board at 9:58.

18.  Presentation of the September 30, 2005 Guideline Compliance Report presented by Scott Garrett, Wurts & Associates

Mr. Garrett gave a presentation on the September 30, 2005 Investment Guideline Compliance Report.

RECEIVED AND FILED

19.  Discussion and appropriate action on the selection process for an actuarial firm to audit the June 30, 2005 actuarial valuation results

A motion was made by Trustee Cardenas, seconded by Trustee Thobe to select The Segal Company as the actuarial firm to audit the June 30, 2005 actuarial valuation results and to issue an RFP for actuarial audit services to be performed in conjunction with the tri-annual experience study. VOTE: Unanimous (Absent – Savrnoch)

RECEIVED AND FILED; APPROVED

20.  Discussion and appropriate action on Board Governance Operations/Policies

A motion was made by Trustee Thobe, seconded by Trustee Dominguez to issue an RFP for Board Governance Operations/Policies and to form an Ad-Hoc Committee consisting of Trustee Dominguez as Chair, and Trustees Cardenas, Frye & Crow. VOTE: YES – Cardenas, Crow, Dominguez, Jolly, Souza, Thobe; NO- Larson, Papaleo (Absent – Savrnoch).

RECEIVED AND FILED; APPROVED

21.  Discussion and appropriate action regarding request by Fresno Station Business Center tenant, Roy A. Norman, to provide on-site management services

A motion was made by Trustee Cardenas, seconded by Trustee Jolly to contract Roy A. Norman to provide on-site management services for the Fresno Station Business Center. VOTE: Unanimous (Absent – Savrnoch)

RECEIVED AND FILED; APPROVED

22.  Discussion and appropriate action on the Senior Management Salary Adjustment – Chief Accountant

A motion was made by Trustee Thobe, seconded by Trustee Dominguez to approve a 2.75% salary increase for senior management – Chief Accountant. VOTE: Unanimous

RECEIVED AND FILED; APPROVED

23.  Closed Session:

a. Personnel – pursuant to G.C. §54957 – Public Employee Performance Evaluation – Retirement Administrator

b.  Conference with Legal Counsel – Actual Litigation - pursuant to G.C. §54956.9(a) - County of Fresno v. Board of Retirement

c.  Disability Retirement Applications – Personnel Exception (G.C. §54957):

1.  Randy Albright

24.  Report from Closed Session

23.a. Nothing to Report

23.b. Nothing to Report

23.c1. Randy Albright – Decision – A motion was made and seconded to direct the Administrator to notify the applicant that the application will be denied unless the applicant requests a hearing. M – Dominguez, S – Jolly VOTE: YES – Dominguez, Jolly, Thobe, Souza; NO – Cardenas, Crow, Larson, Papaleo (Absent – Savrnoch).

25.  Report from FCERA Administration

1.  Mr. Peña will be attending a meeting with the Grand Jury to discuss various issues.

2.  Mr. Peña will be meeting with the staff at the County Administrator’s office to discuss the Agenda for the joint meeting.

3.  The International and Emerging Market Accounts were funded in November.

4.  The Service Level Agreement with Fifth Third Bank is in the process of being finalized.

26.  Report from County Counsel

Deputy County Counsel Barbara Booth Grunwald reported on three Brown Act cases: one holding that it is proper to shorten the allowed time for public input on agenda items to less than normally allowed, a second concluding that a task force organized by local police chiefs became a JPA subject to the Brown Act when it was ratified by city councils as a separate legal entity with the right to sue and be sued, and a third disallowing the efforts of a local agency to meet in closed session with another agency’s attorney, even though the other agency had asked the first agency to handle certain aspects of litigation for it.

27.  Board Member Announcements or Reports

None.

NEXT MEETINGS:

December 15, 2005 – 9:00 AM (Thursday)

Special Meeting – Supplemental “Non-Vested” Health Benefit

FCERA Boardroom

1111 H Street, Fresno, CA 93721

December 21, 2005 – 9:00 AM (Wednesday)

Regular Meeting

FCERA Boardroom

1111 H Street, Fresno, CA 93721

January 4, 2006 – 9:00 AM (Wednesday)

Regular Meeting

FCERA Boardroom

1111 H Street, Fresno, CA 93721

There being no further business, the meeting was adjourned at 12:55 PM.

Roberto L. Peña

Secretary to the Retirement Board

12/07/05 Regular Meeting Minutes