BOARD OF DIRECTOR’S MEETING

FEBRUARY 10, 2004

ATTENDANCE

BOARD MEMBERS: All Board members present except Judy Folsom

RETIREMENT ISSUES TASK FORCE: Bob West

GUESTS: Rosie Wiseman, Bob Headland, Terry Flynn, John Mattis,

Ruth Ann Hageman.

President Nancy Acevedo called the meeting to order at 9:30AM

APPROVAL OF MINUTES

The minutes of the Board meeting of January 13, 2004 were approved with one correction re the value of the retirement fund.

TREASURER’S REPORT

Sylvia Tatum reported a balance in the Operating Fund on January 1, 2004 of $1,822.76. Income for January was $1,281.19 and expenses were $1,155.95. Operating Fund balance as of January 31, 2004 was $1,948.00. Reserve Fund balance was $10,179.32 for a grand total of $12,127.32

Sylvia advised those Board members with check signing abilities that they all had to appear in person to sign new authorization cards. Since this “in person” signing has not been a requirement in the past, Sylvia will check into this again.

Sylvia stated the death of approximately 10 association members in the past three months.

PROGRAM CHAIRMAN

Vice President Adam Saling reported the following programs:

February: Three candidates for City Attorney

March: Police Chief

April: Mayoral candidates (providing there is a runoff election)

May: Possibly two Medal of Honor recipients

RETIREMENT ISSUES TASK FORCE

Dave Crow reported on the meeting of February 5, 2004. Discussions with Larry Grissom and Mike McGhee (Labor Relations Manager) centered on priorities for 2004. It was agreed that the 13^th check and Corbett Settlement accrued payments were of prime priority with Health Care coverage a close third. Also on the table will be the possibility of monthly Corbett payments in the future.

Don Robbins voiced the opinion that continuing Health Care insurance premium payments should be of number one importance. Dave agreed but stated that health care coverage was secure through 2005 and backed by a separate fund.

It is critical to have an opinion as to whether or not the health insurance premiums are vested. Dave’s requests for an opinion from the City Attorney have been fruitless to date. He said he is aware of a draft position paper quietly circulating around city hall but nothing has been made public as yet.

Dave said if the earnings of the retirement fund continue as they have during the present fiscal year there should be enough surplus earnings to pay a 13^th check plus three years of Corbett Settlement payments.

HEALTH ADVISORY COMMITTEE

Nothing new to report. Next meeting in April. Retention of the Care Counsel contract will be discussed at the next meeting. It has gotten limited use but is essential when problems do arise. Joe Flynn likened the Care Counsel to a policeman- you seldom need one but they are nice to have around when you do.

COMMITTEE REPORTS

NEWSLETTER

Alice Anglim asked Joe Flynn to highlight a notice in the newsletter that lunch reservations MUST be made by Friday noon the week before the meeting. She has been getting some calls on Monday evenings. This is obviously not enough lead-time for the caterer.

MEMBERSHIP

Charles Buchanan reported that he has submitted the revised invitation letter

(for new retirees to join the association) and the survivor benefits information brochure to the printer for bids.

ACTIVE EMPLOYEES LIAISON

Alice Anglim said a meeting would be held on February 11. There are no retiree’s related items on the docket. There will be a discussion of increased TOT fund use if Proposition C passes in March.

AUDIT COMMITTEE

Bob Headland submitted the audit report. He said the association’s books were in good order and commended Sylvia Tatum for a job well done. He said the committee had one recommendation: to add a column to the Statement of Reserve Funds section of the monthly report to show deposits/withdrawals, if any, from these accounts. The Board approved the audit committee’s report with the recommendation. President Acevedo thanked the audit committee for their work.

ACTION ITEMS

SUPPLEMENTAL COLA

Nancy passed out a draft of a letter to Mike McGhee, City Labor Relations Manager, addressing a potential underpayment of the approved Supplemental COLA to pre-82 retirees in the absence of the 2003 13^th check. The letter asks whether or not the absence of the 13^th check was taken into account in computing the payment amounts to those receiving the supplemental COLA.

The Board approved sending the letter with copies to all Retirement Board members on a vote of 12-1.

RETREAT AGENDA

Nancy distributed copies of the February 13^th Board Retreat. It was suggested that an addition item be added, ie. what to tell newly retired city employees they should expect to gain by joining the association- social interaction, political “clout”, etc.

PENSION REFORM COMMISSION

The PRC meets today (February 10). John Casey will attend. The Commission is still in the “fact finding” stage with a report today by the actuary.

STATUS OF LAWSUITS

Nancy said that the next scheduled court hearing is February 27 at 1:45PM in Department 67 with trial set for May 21^st. Due to on-going settlement conferences these dates may change.

STATUS OF RETIREMENT FUND

The Retirement Fund balance as of January 12 was $3.211 Billion, up $40 Million from last month.

REMINDER

Nancy reminded the Board that all events next month would be moved forward one half hour to accommodate the Police Chief’s schedule. Board meeting will start at 10:00AM, general meeting at 11:30AM, program at 12:00 noon and lunch at 12:30PM.

ADJOURNMENT

The meeting was adjourned at 10:45AM.

Respectfully submitted,

Robert E. Cain

Secretary

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