BOARD OF DIRECTORS MEETING
September 23, 2014
3:00 p.m.
Or Upon Adjournment or Recess of the
Investment Committee Meeting, Whichever is Later
Hyatt Regency Hotel
1 Old Golf Course Road
Monterey, CA
September 26, 2014
9:30 a.m.
Or Upon Adjournment or Recess of the
Board of Directors Strategic Planning Closed session, Whichever is Later
Hyatt Regency Hotel
1 Old Golf Course Road
Monterey, CA
BOARD OF DIRECTORS/EXECUTIVE COMMITTEE
STRATEGIC PLANNING MEETING
September 24-26, 2014
(Closed Session)
BOARD MEMBERS
Sheryl Chalupa, Chair
Robin Baker
Daniel M. Curtin
Marvin Kropke
Sen. Michael J. Machado (Ret.)
Lawrence E. Mulryan
Jack Neureuter
Steven L. Rank
Thomas E. Rankin
Scott K. Reid
William M. Zachry
Christine Baker (Ex-Officio)
| OPEN SESSION | Tuesday, September 23, 2014 @ 3:00 pm | |
| Action/Sheryl Chalupa | 1. | Call to Order and Roll Call |
| Action/Sheryl Chalupa | 2. | Antitrust Admonition |
Action/Sheryl Chalupa |
3. | Consent Calendar1 |
a. |
Approval of May 15-16, 2014; May 22-23, 2014 and July 8-9, 2014 Open Meeting Minutes | |
b.
| Board Member Educational Opportunities and Approval of Planned Board Member Education and Expense Reimbursement | |
c.
| Ratification of President’s Official Bond for Vernon L. Steiner | |
d.
| Legislative Update | |
e.
| Approval of Retirement Resolutions (originals available for signature at meeting) |
|
| Information/Andreas Acker | 4. | Staffing Update |
a. |
Staffing | |
b. |
Employee Leave Balance and Usage | |
| Information/Peter Guastamachio | 5. | Financial Update – 2nd Quarter 2014 |
| Information/Vernon Steiner | 6. | President’s Report |
| 7. | Reports by the Chairs of Committee Activities | |
| Information/Lawrence Mulryan | a. |
Governance Committee |
i. |
Governance, Compliance and Privacy Update | |
| Information/Sheryl Chalupa | b. |
Audit Committee |
i. |
Update on Completed Closed Audits | |
| Information/Michael Machado | c. |
Investment Committee |
i. |
Bond Transactions and Compliance Report | |
| Information/Sheryl Chalupa | 8. | Chairwoman’s Report |
| Information | 9. | Board Member Reports |
| Information/Sheryl Chalupa | 10. | Public Comment on Appropriateness of Closed Session for items 13 through 22. |
| Information/Sheryl Chalupa | 11. | Public Comment |
CLOSED SESSION |
||
| Action/Sheryl Chalupa | 12. | Approval of May 15-16, 2014; May 22-23, 2014; and July 8-9, 2014 Closed Meeting Minutes |
| Information/Marjorie Hutchings | 13. | Update on IT Strategic Optimization Plan [Government Code Section 11126 (j)(4)] |
| Information/Beatriz Sanchez | 14. | Update on Claims Strategic Optimization Plan [Government Code Section 11126 (j)(4)] |
| Information/Sheryl Chalupa | 15. | Significant Open Audits Report and Fraud Litigation Report [Government Code Sections 11126(e), (j)(2), (3) and (4)] |
| Information/Michael Machado | 16. | Financial and Investment Considerations Related to the Strategic Plan [Government Code Section 11126(j)(4)] |
CLOSED SESSION |
Wednesday, September 24, 2014 | |
| Action/Sheryl Chalupa | 17. | Update on Strategic Plan 2014-2016 [Government Code Section 11126 (j)(4)] |
| Action/Ken Van Laar | 18. | Insurance and Reinsurance Strategy Update [Government Code Section 11126 (j)(4)] |
| Information/Darlyn Regan and Lauren Mayfield | 19. | Workplace Safety and Loss Prevention Strategy Update [Government Code Section 11126 (j)(4)] |
| Information/Lisa Stolzy | 20. | Pending and Potential Litigation [Government Code Sections 11126(e), (j)(4)] |
a. |
Lantz v. Workers' Compensation Appeals Board, et al. (CA Dept of Correction and Rehabilitation), Supreme Court of California Case No. S219536; Fifth District Court of Appeal Case No. F065934; WCAB No. ADJ8004482 | |
b. |
Angelotti Chiropractic Inc., et al. v. Edmund G. Brown, Jr. et al., U.S. Court of Appeals for the Ninth Circuit, Case Nos. 12-56996, 12-57080; U.S. District Court, Central District of California (Los Angeles), Case No. SACVB-1139-GW/JEM | |
c. |
Chorn v. Brown, et al., Second District Court of Appeal Case No. B256117; Los Angeles Superior Court Case No. BC528190 | |
d. |
Dubon v. World Restoration Inc. and State Compensation Insurance Fund, Workers’ Compensation Appeals Board control/reconsideration unit (San Francisco) Case No. ADJ4274323 and ADJ1601669 | |
e. |
Frances Stevens v. Outspoken Enterprises, Inc. and State Compensation Insurance Fund, First District Court of Appeal, Division One (San Francisco) Case No. A141435; Workers' Compensation Appeals Board Case No. ADJ1526353 | |
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 vs. Michael D. Drobot Sr. et al.; U.S. District Court, Central District of California, Southern Division Case No. SACV13-00956 AG (CWx) | |
h. |
State Compensation Insurance Fund v. Richard S. Fuld, et al. (Lehman Brothers); U.S. District Court, Northern District of California, CV11-2400 EMC | |
i. |
Andrea Sewell, et al v. State Compensation Insurance Fund; U.S. District Court, Northern District of California, C13-0588 | |
j. |
Hablian, et al v. Zurich, et al; Van Nuys WCAB (Various Case Nos.) | |
k. |
California Self-Insurers' Security Fund v. Blue Lake Rancheria, et al.; Sacramento County Superior Court Case No. 34-2011-0011-2628 | |
| Information/Vern Steiner | 21. | Governance Considerations Related to the Strategic Plan: Human Resources Strategic Planning [Government Code Sections 11126 (a), (j)(4)] |
a. |
Staffing, Leadership and Succession Planning | |
| CLOSED SESSION | September 24-26, 2014 @ Hyatt Regency Hotel, Monterey, CA | |
| 22. | Strategic Planning Session [Government Code Sections 11126(a), (j)(4)] |
|
| OPEN SESSION | September 26, 2014 @ 9:30 or upon adjournment or recess of the Closed Session, whichever is later | |
| Action/Sheryl Chalupa | 23. | Call to Order and Roll Call |
| Action/Sheryl Chalupa | 24. | Ratification of Appointment of Chief Financial Officer and Chief Operating Officer |
| Information/Sheryl Chalupa | 25. | Proposals and Suggestions for November 20-21, 2014 Agenda |
| Next Board Meeting: November 20, 2014 at State Fund Corporate Office, 333 Bush Street, San Francisco, CA | ||
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. |
||
| 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. | ||
