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HomeMy WebLinkAboutMINUTES - 05212013 - SD.2RECOMMENDATION(S): 1. ACCEPT nominations of the following three finalist candidates for the July 1 vacancy in the Board of Supervisors Appointee #4 seat on the Contra Costa County Employees' Retirement Association Board of Trustees (Retirement Board): Scott Gordon William Lau Tom Raney 2. DETERMINE process and schedule for the final selection. FISCAL IMPACT: No fiscal impact is associated with the recruitment process. BACKGROUND: On June 30, 2013, the term of the Board of Supervisors Appointee #4 seat on the Retirement Board will expire and the seat will become vacant. On February 13, 2013, County staff issued a press release to advertise the impending vacancy. At the conclusion of the eight-week filing period, 24 applications were received and accepted. The Internal Operations Committee (IOC) held a special meeting on April 23 at which the committee screened the 24 applications down to 10 semi-finalists, four of which later withdrew leaving six semi-finalists. On May 13, the IOC interviewed the six semi-finalists, including the incumbent, and hereby nominates three specified candidates for Board of Supervisors consideration for appointment to the Seat #4 effective July 1, 2013 for APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/21/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes:See Addendum VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: JULIE ENEA (925) 335-1077 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 21, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD.2 To:Board of Supervisors From:INTERNAL OPERATIONS COMMITTEE Date:May 21, 2013 Contra Costa County Subject:NOMINATIONS FOR THE (CCCERA) RETIREMENT BOARD OF TRUSTEES SEAT #4 VACANCY a three-year term ending June 30, 2016. Attached are the applications and/or resumes for each finalist and the summary of time commitment estimate that was provided to the candidates in advance of the interviews. A complete list of candidates and their applications are available on the County's website at this address: http://ca-contracostacounty.civicplus.com/DocumentCenter/View/26003 . There are two regular meetings of the Board of Supervisors at which the Board may interview the finalists prior to the June 30 expiration of the seat term: June 4 and June 25. Staff is recommending one 15-minute interview for each candidate, to be conducted publicly either in the Board Chambers or in Room 101. The IOC suggests several options for the interviews: BACKGROUND: (CONT'D) Interview questions prepared in advance by staff, in consultation with the Retirement Administrator One interview question related to a designated subject area prepared by each Supervisor and introduced at the interview, for a total of five questions Three case studies selected by staff based on actual Retirement Board agenda items, to serve as open discussion topics with no prepared questions A written supplemental questionnaire to be completed by the candidates prior to the interview and to serve as the basis for the interviews (note that because of the short turnaround between today's meeting and the June 4 materials deadline for the Board of Supervisors packet, this option is practical only if the interviews are held on June 25) A combination of a written supplemental questionnaire and interview, either structured or unstructured. Of course, the Board may have other preferences with regard to the process to be used. All three candidates are currently available on both June 4 and June 25, except that Scott Gordon is available only until 10:30 a.m. on June 4. The IOC requests the Board provide direction to the County Administrator regarding the preferred process and schedule. CLERK'S ADDENDUM Speaker: Rollie Katz, Public Employees' Union Local 1. ACCEPTED nominations of the three finalist candidates Scott Gordon, William Lau, and Tom Raney for the July 1 vacancy in the Board of Supervisors Appointee #4 seat on the Contra Costa County Employees' Retirement Association Board of Trustees (Retirement Board); DIRECTED the interviews to be conducted publicly on June 4, 2013 in the Board Chambers, utilizing the following format: In advance of the interviews, the candidates will receive questions and/or case study(s) prepared by the County Administrators in consultation with the County Treasurer-Tax Collector. Supervisors may provide input to the County Administrator on particular topics of interest. The interviews are anticipated to be 15-20 minutes for each candidate. The Chair of the Board will work with staff to begin the June 4, 2013 meeting at 8:30 a.m., with the interviews scheduled as the first item of the day. ATTACHMENTS Retirement Board Time Commitment Estimate Upd 2013 CCCERA Bd of Trustees Application Scott Gordon CCCERA Bd of Trustees Application William Lau CCCERA Bd of Trustees Application Tom Raney CONTRA COSTA COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION RETIREMENT BOARD MEMBERSHIP TIME COMMITMENTS, CONFLICTS OF INTEREST, FIDUCIARY LIABILITY Regular Meetings The Board normally holds its regular business meeting the second and fourth Wednesdays of each month except in May and November, when the meeting scheduled for the second Wednesday is usually moved to the first Wednesday of the month. Meetings begin at 9:00 a.m. and most often end before 4:00 p.m. The agenda and meeting materials are mailed 6 days before the meeting. Reviewing the packet and preparing for a meeting takes up to 4-5 hours. Post-meeting time can vary from 1-4 hours. Appointed Board members receive a stipend of $100 per Board meeting, regardless of the length of time of the meeting. There is no reimbursement for time spent at seminars and onsite visits. Special Meetings The Board holds special meetings to hear presentations from firms during a manager search, to review results of the annual actuarial valuation, to meet with investment managers to review performance, and to meet with advisors and consultants on matters of particular interest, which may arise from time to time. Typically there are 4-6 of these additional meetings each year and are typically scheduled for a morning starting time. Preparation also varies depending on the subject matter. Standing Committees The Board had two standing committees (Investment and Administration), each of which met once a month. These standing committees were disbanded in late 2002, and instead, the second regular monthly meeting was added. Miscellaneous Time Board members are provided with subscriptions to several pension and investment- related magazines and periodicals that are intended to help the trustee stay informed on events, products, regulations, providers, concepts, innovations, controversies, and people as they relate to pension fund administration. Time to review these materials varies depending on the extent to which the trustee feels the need for this information. Travel and Training The Retirement Board serves as fiduciary for the Association’s Trust. As fiduciaries, Board members are held to the “prudent person” standard on investment decisions. For this reason, the Board places a great deal of emphasis on continuing education of its members. Trustees are encouraged to attend seminars and conferences dealing with benefits administration and investments. These educational opportunities are regularly placed on the Board meeting agenda. The association reimburses Board members for expenses incurred in conjunction with any training specifically authorized. The typical Board member spends from 7-12 days attending educational seminars and conferences each year. This typically can be much higher for the first few years of Board membership due to the learning curve for public defined benefit plans and investments. On Site Visits Board procedure is to perform on site visits with newly approved investment managers before hire, and existing managers on a periodic basis. These visits include travel, both local and across the country, and should be performed by all Board members on a rotating basis. Note: Travel expenses are reimbursed in accordance with CCCERA’s Travel Policy. Conflicts of Interest Board members are prohibited from marketing any investment, consulting or related service to the Board or to the Boards of any other 1937 Act Retirement Systems. For example, if a Board member is employed by XYZ Advisors, a firm that provides investment or consulting services to institutional investors, it is not legal for that Board member to marketed XYZ’s services to the Board, or any other 1937 Act Retirement System Board. The same applies if the Board member is employed by XYZ Advisors and markets, or provides investment or consulting in an ongoing relationship with the Board or any other 1937 Act Retirement Board. Board members are required to file disclosure forms each year. Such things as sources of income for the Board member and his or her spouse, property ownership, partnerships, investments, and gifts are required to be disclosed. All disclosure documents are open to the public. Fiduciary Liability Trustees are held to a strict code of conduct in every decision they make as Board members. Although infrequent in the public sector, a Board member can be sued for personal liability arising from a decision or action by the Board. The Association procures fiduciary liability insurance to cover the Board in its official capacity but is precluded by law from purchasing similar coverage for personal liability of each Board member. Such coverage is, however, available to Board members at a nominal cost. SUMMARY OF TIME COMMITMENTS MEETINGS Minimum Maximum Hours/Year Hours/Year Monthly Meetings Prep. Time 120 216 Meeting 144 160 Special Meetings Prep. Time 8 12 Meeting 20 30 TOTAL 292 418 EDUCATION 7 – 12+ days per year attending out-of-town seminars and conferences. ON SITE VISITS 2 – 6 days per year attending out of town on site visits with investment managers