STATE COMPENSATION INSURANCE FUND
BOARD OF DIRECTORS
BOARD OF DIRECTORS MEETING
May 16, 2013
11:30 a.m.
Or Upon Adjournment or Recess of the
Investment Committee Meeting, Whichever is Later
State Compensation Insurance Fund Office
3247 West March Lane
Stockton, CA 95219
(Closed Session Locations as noted below)
Kautz Farms
5920 E. Live Oak Road
Lodi, CA 95240
Delta Packing
6021 E. Kettleman Lane
Lodi, CA 95240
May 17, 2013
10:30 a.m.
Or Upon Adjournment or Recess of the
Board of Directors Closed session, Whichever is Later
Wine and Roses, Garden Ballroom
2505 West Turner Road
Lodi, CA 95242
BOARD MEMBERS
Lawrence E. Mulryan, Chair
Robin Baker
Sheryl A. Chalupa
Daniel M. Curtin
Marvin Kropke
Sen. Michael J. Machado (Ret.)
Francis E. Quinlan
Steven L. Rank
Thomas E. Rankin
Scott K. Reid
William M. Zachry
Christine Baker (Ex-Officio)
| OPEN SESSION | Thursday, May 16, 2013 @ 11:30 a.m. |
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| Action/Lawrence Mulryan | 1. | Call to Order and Roll Call | |
Action/Lawrence Mulryan |
2. | Antitrust Admonition | |
| Action/Lawrence Mulryan | 3. | Consent Calendar1 | |
a. |
Approval of February 14-15, 2013 Open Meeting Minutes | ||
b. |
Recognition of Outgoing Board Member Donald E. Garcia | ||
c. |
Ratify Appointments of Marvin Kropke to Investment Committee and Robin Baker to Audit Committee (Revised) | ||
d. |
Board Member Educational Opportunities and Approval of Planned Board Member Education and Expense Reimbursement | ||
e. |
Approval of Retirement Resolutions (Revised) (originals available for signature at meeting) |
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f. |
Renewal of Expiring 3rd Quarter Insurance Policies | ||
| Information/Andreas Acker | 4. | Personnel Matters | |
a. |
Workforce Update | ||
b. |
Employee Leave Balance and Usage | ||
c. |
Veteran Hiring | ||
| Information/Dan Sevilla | 5. | Financial Update – 1st Quarter 2013 (Revised) | |
| Information/Milliman | 6. | Statement of Actuarial Opinion | |
| Information/Farm Bureau | 7. | State of California Agriculture | |
Information/Tom Rowe |
8. | President’s Report | |
| 9. | Reports by the Chairs of Committee Activities | ||
| Action/Information/Lawrence Mulryan | a. |
Governance Committee | |
i. |
Governance and Compliance Update | ||
ii. |
Annual Review and Approval of State Fund By-Laws and Committee Charters | ||
iii. |
Annual Review and Approval of Board Delegated Authority and Approval Levels | ||
iv. |
Board and Committee Effectiveness | ||
| Information/Francis Quinlan | b. |
Audit Committee | |
i. |
Update on Completed Closed Audits | ||
| Information/Michael Machado | c. |
Investment Committee | |
i. |
Bond Transactions and Compliance Report | ||
| Information/Lawrence Mulryan | 10. | Chairman’s Report | |
| Information | 11. | Board Member Reports | |
| Information/Lawrence Mulryan | 12. | Public Comment on Appropriateness of Closed Session for Items 15 through 28. | |
| Information/Lawrence Mulryan | 13. | Public Comment | |
| CLOSED SESSION | |||
| Action/Lawrence Mulryan | 14. | Approval of February 14-15, 2013 Closed Meeting Minutes | |
Information/Ken Van Laar and Milliman |
15. | Independent Actuarial Reserve Report [Government Code Section 11126 (j)(4)] |
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| Information/Marjorie Hutchings | 16. | Update on IT Strategic Optimization Plan [Government Code Section 11126 (j)(4)] |
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| Information/Beatriz Sanchez | 17. | Update on Claims Strategic Optimization Plan [Government Code Section 11126 (j)(4)] |
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| Information/Tom Rowe and Dan Sevilla | 18. | Governance Considerations Related to the Strategic Plan: Human Resources Strategic Planning [Government Code Sections 11126 (a), (j)(4)] |
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a. |
Strategic Planning for Business Transformation | ||
b. |
Staffing, Leadership and Succession Planning | ||
c. |
Performance Awards Program | ||
| Information | 19. | Policyholder Site Visits [Government Code Section 11126 (j)(4)] |
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a. |
Kautz Farms, 5920 E. Live Oak Road, Lodi, CA 95240 | ||
b. |
Delta Packing, 6021 E. Kettleman Lane, Lodi, CA 95240 | ||
| CLOSED SESSION | Friday, May 17, 2013 @ Wine & Roses, 2505 West Turner Road, Lodi | ||
| Information/John Cripps, Marketing Decisions Sciences | 20. | Voice of the Customer Measurement Initiative – Overview and Early Results [Government Code Section 11126 (j)(4)] |
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| Information/Tom Rowe | 21. | Planning for Board Strategic Meeting [Government Code Section 11126 (j)(4)] |
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| Information/Tom Rowe and Dan Sevilla | 22. | Update on Strategic Plan 2013-2015 [Government Code Section 11126 (j)(4) |
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| Information/Brian Watson | 23. | Legislative Update [Government Code Section 11126 (j)(4) |
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| Information/Ken Van Laar | 24. | Enterprise Risk Management Update [Government Code Section 11126 (j)(4)] |
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| Action/Ken Van Laar | 25. | Reinsurance Strategy Update [Government Code Section 11126 (j)(4)] |
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| Information/Francis Quinlan | 26. | Significant Open Audits Report and Fraud Litigation Report [Government Code Sections 11126(e), (j)(2), (3) and (4)] |
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| Information/Michael Machado | 27. | Financial and Investment Considerations Related to the Strategic Plan [Government Code Section 11126(j)(4)] |
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| Information/Carol Newman | 28. | Pending and Potential Litigation [Government Code Sections 11126(e), (j)(4)] |
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a. |
State Compensation Insurance Fund vs. Richard Fuld, et al. (Lehman Brothers); Multidistrict Litigation Case No. CAN/3:11-cv-02400, Southern District of New York | ||
b. |
Nushake Inc. vs. State Compensation Insurance Fund; San Francisco Superior Court, Case No. CGC 05441299 | ||
c. |
Andrea Sewell, et al. v. State Compensation Insurance Fund; U.S. District Court, Northern District of California, Case No. 3:13-cv-00588-THE | ||
d. |
Electronic Waveform Lab, Inc vs. EK Health Services et al.; Los Angeles County Superior Court, Case No. BC467496 | ||
e. |
State Compensation Insurance Fund vs. F.D. DeLeon & Associates; Los Angeles County Superior Court, Central District, Case No. BC44475 | ||
f. |
State Compensation Insurance Fund vs. Sana Ulla Khan, et al.; U.S. District Court, Central District of California, Southern Division Case No. SACV12-01072 JST (mLGx) | ||
g. |
State Compensation Insurance Fund v. Axiom Staff Management, Inc.; Los Angeles Superior Court, Case No BC4353306 | ||
h. |
Cabayan v. State Compensation Insurance Fund, Superior Court, County of San Francisco, CGC-09-492766 | ||
i. |
Hablian v. Zurich; Workers Compensation Appeals Board VNO0425788 | ||
j. |
State Compensation Insurance Fund v. Onvoi Business Solutions, Inc. Superior Court, County of San Francisco, CGC-07-470352 | ||
k. |
ReadyLink HealthCare, Inc. v. State Compensation Insurance Fund; Central District of California CV11-09934-PSG | ||
l. |
State Compensation Insurance Fund v. Alexis Construction Cleanup, Inc.; Superior Court, County of Orange, Case No 30-2009 00125433 | ||
m. |
State Compensation Insurance fund. V. Employer's Depot, Inc.; Superior Court, Ventura, 56-2010-00382716-CU-BC-VTA | ||
n. |
Schroeder v. WCAB; State of Calif. CDCR, 1st Dist. Court of Appeal, Div. 4 (San Francisco), Case No. A137774 (5/1/13) | ||
o. |
BHCAOS v. WCAB; Koos Fashion, dba CDK Fashion, S209526 (Supreme Court, lien claimant’s Petition for Review denied, 5/1/13) | ||
p. |
Martinez-Godoy v. Goodwill, Ind., Inc., and State Fund, ADJ7923726 (Bakersfield WCAB) | ||
q. |
Gutierrez v. Del Mar Food Products, Inc., ADJ4041350 (Salinas WCAB) | ||
| OPEN SESSION | 10:30 a.m. or upon adjournment or recess of the Closed Session, whichever is later @ Wine & Roses, 2505 West Turner Road, Lodi 95242 (Garden Ballroom) | ||
| Action/Lawrence Mulryan | 29. | Call To Order and Roll Call | |
| Action/Lawence Mulryan | 30. | Approval of Investment Policy Statement and Guidelines | |
| Information/Lawrence Mulryan | 31. | Proposals and Suggestions for August 13, 2013 Agenda | |
| Next Committee Meeting: August 13, 2013 at the Marriott Marquis, San Diego. Will also hold Strategic meeting on August 15-16, 2013. | |||
1Items on the Consent Calendar include routine actions or matters already considered by a committee of the Board and will be enacted by one motion and one vote. There will be no separate discussion of these items unless a Board Member or the public so requests. It is in the Board’s discretion to remove items already considered by a committee of the Board from the Consent Calendar. Any item removed from the Consent Calendar will be considered in its normal sequence on the agenda. If you wish to have an item removed from the Consent Calendar, please submit a speaker card or make your request at the time the Board Chairperson asks if any member of the public wishes to remove an item from consent. After an item, if any, removed from the Consent Calendar has been discussed, the Board will vote to approve all items remaining on the Consent Calendar.
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Note: Items designated for information are appropriate for Board/Committee action if the Board/Committee wishes to take action. Any agenda item from a properly noticed Committee meeting held immediately prior to this Board meeting may be considered by the Board. Agenda items may be taken out of order with the approval of the Chairperson. Public comment will be limited to three (3) minutes per speaker and ten (10) minutes per subject item. |
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