MIN UTE S

OF THE

BOARD OF PENSION COMMISSIONERS MEETING OF OCTOBER 21, 1982

The Board of Pension Commissioners of the City of Los Angeles met in Room 155, City Hall South, on Thursday, October 21, 1982.

COMMISSIONERS: Arthur Burdorf, President Bert Cohen Olga Marcus Karl L. Moody

DEPARTMENT OF PENSIONS: Gary Mattingly, Manager-Secretary James J. McGuigan, Assistant Manager-Fiscal Wm. S. Hutchison, Assistant Manager-Benefits

CITY ATTORNEY: Siegfried O. Hillmer, Assistant City Attorney

President Burdorf called the meeting to order at 9:40 a.m. and referred to Item No. 1 on the agenda.

PRESENTATION OF MINUTES OF THE MEETINGS OF JANUARY 21, 1982; JANUARY 28, 1982; FEBRUARY 4, 1982; FEBRUARY 11, 1982; AND SEPTEMBER 23, 1982

Approved. Motion by Commissioner Marcus, seconded by Commissioner Moody and adopted by the following vote: ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none.

INVESTMENTS

The Manager-Secretary, Mr. Gary Mattingly, stated The Boston Company sent a letter transmitting their bond purchase transactions and that Wright Investors' Service sent a letter transmitting their stock purchases and sales but that no action was required.

Mr. Bill Hibschman from Security Pacific National Bank was present in the Board room and came forward. He stated he was present today because Security had added a company to their list that needed approval by the Board.

STOCK PURCHASE RESOLUTION NO. 83019 2525 NEW SYSTEM GENERAL PENSION FUND

After discussion by the Board it was moved by Commissioner Marcus that upon the advice of investment counsel, the Manager-Secretary and/ or Security Pacific Investment Management be authorized to purchase up to $3,500,000 of capital stock in each of the following companies at the market price, plus commission and charges:

Abbott Laboratories Anheuser-Busch Aetna Life & Casualty Asarco Incorporated Air Products and Chemicals Atlantic Richfield Allegheny Power System, Inc. Avery International Allied Bancshares Avnet Incorporated Aluminum Company of America Avon Products American Cyanamid Baker International American Home Products Bally Manufacturing American Hospital Supply Baltimore Gas & Electric American Medical International Barnett Banks American National Resources Bausch & Lomb American Broadcasting Company Baxter Travenol American Building Maintenance Beatrice Foods American Express Becton Dickenson American International Group Bendix Corporation American Standard Incorporated Best Products American Telephone & Telegraph Black & Decker Amerada Hess Boeing Company Amsted Industries Borden Incorporation Bristol-Myers Gulf Oil Corporation Brown Group Incorporated Halliburton Burlington Northern Heinz (HJ) Burroughs Corporation Hercules, Incorporated Capital Cities Communications Heublein Incorporated Carlisle Corporation Hewlett-Packard Carnation Company Hilton Hotels Carter Hawley Hale Holiday Inns Caterpillar Tractor Homestake Mining CBS Incorporated Honeywell Centex Corporation Hospital Corp. of America Champion International Houston Industries Chase Manhattan Bank Houston Natural Gas Chesebrough Ponds Humana, Incorporated Chubb Corporation Hutton (EF) Churchs Fried Chicken Imperial Corporation Citicorp Inco Limited Cities Service Ingersoll-Rand Clark Equipment Inland Steel Coastal Corporation Interco Inc. Coca-Cola Company Internorth Coleman Company IBM Colegate-Palmolive International Flavors & Fragrances Cigna Corporation International Paper Continental Illinois International Telephone & Telegraph Continental Telephone Corporation Johnson & Johnson Cooper Industries K Mart Corporation Corning Glass Kaiser Cement Cox Communications Kerr-Mc Gee Crum & Forster Keystone International Dana Corporation Levi Strauss Dart & Kraft Lilly (Eli) Dayton-Hudson Litton Industries Delta Airlines Loral Corporation Denny's Incorporated Lucky Stores Disney (Walt) Products Marriott Corporation Dover Corporation MIA-Com Incorporated Dow Chemical Macy (RH) Company Dresser Industries Marathon Oil Dun & Bradstreet Mary Kay Cosmetics Du Pont (EI) Masco Corporation E-Systems Masonite Corporation Eastman Kodak May Department Stores Eastern Gas & Fuel May tag Company Eaton Corporation MCA, Incorporated Echlin Manufacturing Mc Donald's Corporation Eckerd Jack MEl, Corporation Edwards (AG) Merck & Company Emerson Electric Mercantile Stores Envirotech Merrill Lynch Exxon Corporation Middle South Utilities Federated Department Stores Milton Bradley Fleetwood Enterprises Minnesota Mining & Manufacturing Florida Power & Light Monsanto Company Foothill Group Morgan (JP) Ford Motor Morrison-Knudsen Foster Wheeler Motorola First Chicago Nabisco Brands First International Banks Nalco Chemical Gannett Company National Medical Care General Electric National City Corporation General Foods National Distiller General Instruments Natomas Company General Mills NCNB Corporation General Motors NCR Corporation Georgia-Pacific Norfolk & Western Railway company Getty Oil Company Northern States Power Gillette Company Northern Telecommunications Golden west Financial Northrup Corp. Goodyear Norton Simon Grainger Incorporated Northwest Airlines Great Western Financial Northwest Bancorp Gulf Canada Northwest Industries Nucor Corporation Oak Industries Stauffer Chemical Owens-Corning Standard Oil - California Pacific Gas & Electric Standard Oil - Indiana Panhandle Eastern Standard Oil - Ohio Parsons Corporation Sterling Drug Penney (JC) Stone Container Pepsico Incorporated Sunstrand Corporation Perkin-Elmer Syntex Corporation Pfizer, Incorporated Tektronix Phelps Dodge Teledyne Philips Industries Tenneco Incorporated Philip Morris Texaco Incorporated Phillips Petroleum Textron Piedmont Aviation Tiger International Pioneer Corporation Times Mirror Polaroid Corporation Texas Eastern Corporation Proctor & Gamble Texas Gas Transmission Public Service Elec . & Gas Company Texas Instruments Public Service of Indiana Texas Oil & Gas Quaker Oats Texas Utilities Company Ralston Purina Tracor Incorporated Raytheon Company Tucson Electric Power Company RCA Corporation U.S. Bancorp Republic Financial Services U.S. Fidelity & Guaranty Revco Drug Stores U.S. Home Corporation Revlon Incorporated U.S. Shoe Coporation Reynolds (RJ) U.S. Steel Corporation Reynolds Metals UAL Incorporated Rockwell International Union Camp Rohm & Haas Union Oil California Royal Dutch Petroleum Union Carbide Safeco Corporation Union Pacific Safeway Stores United Technologies Scher-Plough United Telecommunications Schlumberger Valley National Bank Scientific Atlanta Viacom International Seafirst Corporation Wal-Mart Sealed Power Wang-Laboratories - Class B Sears Roebuck Warner Communications Shell Oil Company Warner-Lambert Signal Cos Waste Management Smithkline Beckman Wendy's International Southern California Edison Western Company of North America Sonat, Incorporated Western Union Southern Pacific Westinghouse Electric Southern Railroad Weyerhaeuser Southwest Airlines Whirlpool Sperry Corporation White Consolidated Square D Company Winn-Dixie Squibb Corporation Wolverine Worldwide st. Paul Cos Xerox Corporation Zenith Radio

RECOMMENDED SECURITY PACIFIC STOCKS UNDER THE "PRUDENT MAN" PROVISIONS

Advanced Micro Devices MCI Communications Air Florida Micom Systems Apple Computer Mobil Corporation Charter House NBI Incorporated Color Tile Nike Incorporated Computervision Nordstrom Coors Company Prime Computer Cross & Trecker Quadrex Corporation Data General Redman Industries Datapoint Corporation Rolm Corporation Digital Equipment Sanders Associates Federal Express Subaru of America General Dynamics Tandem Computers Goulds Pumps Tandy Corporation Key Pharmaceuticals Toys R Us Intel Coporation Whittaker Corporation Intergraph Winnebago Industries ISC systems Worthington Industries zayre Corporation This authorization for stock purchase is to remain in effect for 90 days after this date. The motion was seconded by Commissioner Moody and adopted by the following vote: ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none.

President Burdorf stated a letter had been received from Chemical Bank transmitting their most recent update of portfolio and stock purchases and sales but that no action was required. President Burdorf stated that a motion would be required on Chemical's list of stocks which are additions to their common stock universe.

STOCK PURCHASE RESOLUTION NO. 83018 2525 NEW SYSTEM GENERAL PENSION FUND

After discussion by the Board, it was moved by Commissioner Moody that upon the advice of the investment counsel, the Manager-Secretary and/or Chemical Bank Investment Management be authorized to purchase up to $3,500,000 of capital stock in each of the following companies at the market, plus commission and charges:

Abbott Laboratories CBS Incorporated AETNA Life & Gas Company Celanese Corporation Air Products and Chemicals Inc. Central & South West Corporation Allied Corporation Celeron Aluminum Co. Amer. Centel American Broadcasting Cessna Aircraft Company American Cyanamid Company Champion International Corporation American Express Company Chase Manhattan Corporation American Home Products Cpo Chemical Nuclear System Incorporated American Hospital Supply Chesebrough-Pond's Incorporated American International Group Chubb Corporation American Med. International Inc. Cigna American Telephone & Telegraph Co. Cincinnati Milacron AMP Incorporated Citicorp Anheuser Busch Cos. Incorporated Cleveland Cliffs Iron Archer Daniels Midland Coca Cola Company Arizona Public Service Colgate Palmolive Company ARKLA Corporation Collins & Aikman Corporation ARMCO Incorporated Colt Industries Incorporated Del. Armstrong World Industries Inc. Combined International Corporation Asarco Incorporated Combustion Engineering Incorporated Ashland Oil Company Community Psychiatric Atlantic Richfield Company Consolidated Freightway Automatic Data Process Consolidated National Gas Avent Incorporated Continental Corporation Avon Products Incorporated Continental Telecom Bankamerica Corporation Cooper Industries Incorporated Bankers Trust New York Corporation Corning Glass Works Barnett Banks Fla .Incorporated Cox Broadcasting Corporation Baxter Travenol Laboratories CPC International Incorporated Beatrice Foods Company Cross A T Company Becton Dickinson & Company Crum & Forster Bell & Howell Company CSX Corporation Betz Laboratories Incorporated Dana Corporation Big Three Inds. Incorporated Dart & Kraft Incorporated Black & Decker Manufacturing Co. Dayton Hudson Corporation Boeing Company Deluxe Check Printers Borg Warner Deere & Company Briggs & Stratton Delta Airlines Del. Bristol Myers Company Disney Walt Productions Burlington Industries Dover Corporation Brown Forman Distillers Dow Chemical Company Burlington Northern Incorporated Dresser Industries Incorporated Burndy Corporation Dupont E I De Nemours Burroughs Corporation Duke Power Company Campbell Taggart Incorporated Dun & Bradstreet Corporation Capital Cities Community Duriron Incorporated Carlisle Corporation E Systems Incorporated Carolina Power & Light Company Eastman Kodak Company Carpenter Technology Eckerd Jack Corporation Caterpillar Tractor Company Emerson Electric Company CBI Industries Incorporated Emhart Corporation Virginia Lone Star Industries Incorporated Engelhard Corporation Lubrizol Corporation Ex Cell a Corporation Macy R. H. & Company Incorporated Exxon Corporation Manufacturers Hanover Federal Company Marriott Corporation Federal Mogul Corporation Marsh & McLennan Cos. Federated Department Stores Martin Marietta Corporation First City Bancorp Texas May tag Company Florida Power & Light Company MCA Incorporated FLuor Corporation McDermott Incorporated Foxboro Company McDonalds Corporation Gannett Incorporated McGraw Hill Incorporated Geico Corporation Melville Corporation General Electric Company Merck & Company Incorporated General Foods Corporation Mesa Pete. Company General Instr. Corporation Metromedia Incorporated General Mills Incorporated Midcon Corporation General Motors Corporation Millipore Corporation General Re. Corporation Minnesota Mining & Manufacturing Co. General Signal Corporation Mobil Corporation Genuine Parts Company Monsanto Company Georgia Pacific Corporation Morgan J. P. & Company Incorporated Getty Oil Company Morton Norwich Products Goodyear Tire & Rubber Motorola Incorporated Gould Incorporated Nalco Chemical Company Goulds Pumps Incorporated National Medical Care Incorporated Grace W.R. & Company NCR Corporation Grainger W.W. Incorporated New York Times Company GTE Corporation Newmont Mining Corporation Gulf Oil Corporation Nicor Incorporated Halliburton Company Nielson Company Class A Harris Corporation Del. Nippon Electrical Limited Hart Schaffner & Marx NL Industries Incorporated Harte Hanks Community Incorporated Noble Affiliates Incorporated Heinz H. J. Company Norfolk Southern Helmerich & Payne Incorporated Northern Telecom Limited Hercules Incorporated Northern Sts. Power Minnesoto Hewlett Packard Company Northrop Corporation Hilton Hotels Corporation Northwest Airlines Incorporated Holiday Inns Incorporated Northwest Bancorp Homestake Manufacturing Company Occidental Petroleum Corporation Honeywell Incorporated Ohio Casualty Corporation Hospital Corporation American Owens Corning Fiberglass Houston Industries Incorporated Pacific Gas & Electric Company Houston National Gas Corporation Pay less Cashways Incorporated Hughes Tool Company Penney J. C. Incoporated Humana Incorporated Pennwalt Corporation INCO Limited Perkin Elmer Corporation Ingersoll Rand Company Petrie Stores Corporation Interco Incorporated Petrolane Incorporated International Business Machines pfizer Incorporated International Flav. & Frangrances PHH Group Incorporated International Min. & Chemicals Phibro Salomon Incorporated International Paper Company Philip Morris Incorporated International Telephone & Telegraph Phillips Petroleum Company Interpace Corporation Piedmont Aviation Incorporated Irving Bank Corporation Pioneer Corporation Texas James River Corporation Pioneer Hi Bred International Jewel Cos. Incorporated Pitney Bowes Johnson & Johnson PPG Industries Incorporated Joy Manfacturing Company Proctor & Gamble Company K Mart Corporation Provident Life & Accident Insurance Kennametal Incorporated Quaker Oats Kerr McGee Corporation Raytheon Company Keystone International Incorporated RCA Corporation Kimberly Clark Corporation Republic Bank Corporation Kyoto Ceramic Limited Revco D S Incorporated Leaseway Trans. Corporation Revlon Incorporated Lenox Incorporated Reynolds Metals Company Lifemark Corporation Reynolds R. J. Industries Inc. Lilly Eli & Company Rite Aid Corporation Litton Industries Incorporated Roadway Services Texas Gas Transmission Rockwell International Texas Instruments Incorporated Rohm & Haas Company Texas Oil & Gas Corporation Schering Plough Corporation Texas Utilities Company Schlumberger Limited Thomas & Betts Corporation Seafirst Corporation Time Incorporated Seagram Limited Transamerica Corporation Sealed Power Corporation Travelers Corporation Sears Roebuck & Company TRW Incorporated SEDCO Tuscon Electric Power Servicemaster Industries Inc. Tyco Laboratories Incorporated Shell Oil Company U.S. Bancorp Signal Cos. Incorporated Union Camp Corporation Smith International Incorporated Union Carbide Corporation Smithkline Beckman Union Oil Company California Snap On Tools Corporation Union Pacific Corporation Sony Corporation United Energy Res. Incorporated Southern California Edison United States Gypsum Square D. Company United States Shoe Cpo Squibb Corporation United States Stl. Corporation Standard Brands Paint United Technologies Cpo Standard Oil Company California United Telecommunications Standard Oil Company Indiana Upjohn Company Standard Oil Company Ohio USF&G Corporation Stauffer Chemical Company Varian Association Incorporated Sterling Drug Incorporated Virginia Electric & Power Stone Container Corporation Wal Mart Stores Incorporated Sun Banks Florida Incorporated Wang Laboratories Incorporated Sun Incorporated Warner Communications Sunstrand Cororation Warner Lambert Company Superior Oil Company Waste Management Incorporated Syntex Corporation Watkins Johnson Company Tektronix Weyerhaeuser Company Tenneco Incorporated Whirlpool Corporation Texaco Incorporated Wisconsin Electric Power Company Texas Comm. Bancshares Xerox

CHEMICAL BANK SECTION IV-2b STOCK UNIVERSE

Advanced Micro Devices MIA Com Arrow Electronics MCI Communications Chicago & Northwest Transportation Prime Computer Color Tile PSA Computervision Raychem Cray Research Rolm Data General Sanders Associates Datapoint Tandem Computers Digital Equipment Tandy Federal Express Teledyne Ford Motor Toys R Us John Fluke Manufacturing Tymshare Genrad U.S. Air Intel UAL Warnaco Zayre Corporation

This authorization for stock purchase is to remain in effect for 90 days after this date. The motion was seconded by Commissioner Marcus and adopted by the following vote: ayes, Commissioners, Cohen, Marcus, Moody, Woo and President Burdorf - 4; noes, none.

Commissioner Cohen requested staff obtain information from the equity managers as to their total portfolio market value and the amounts they have in cash as of October 21, 1982. He asked that staff have this information for him by the next Board meeting.

OLD BUSINESS

President Burdorf read a thank you note to the Commissioners from Lt. David Brath's family for the flowers sent to his funeral.

Commissioner Cohen thanked the Commissioners for their having sent a donation to the Cancer Society in the name of his father. Mr. Mattingly stated he had no Old Business.

NEW BUSINESS

Mr. Mattingly stated he had no New Business.

DISCONTINUE PENSIONS - ARTICLE XVII - 3

Frank E. Ryan Police Service Retired 08-04-48 Died 07-31-82 Ralph M. Smith Police Service Retired 09-07-45 Died 09-07-82 Ruth M. Doyle Police Widow Retired 06-12-55 Died 08-10-82

Approved. Motion by Commissioner Marcus, seconded by Commissioner Moody and adopted by the following vote: ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none.

PARTIAL PAYMENT OF PENSION - ARTICLE XVII - 1

In accordance with the City Attorney's advice, 50% of the pension payable to Francis B. Aungst, Police Service Pensioner, plus cost of living adjustments, to be paid to his former wife Janice M. Aungst, effective October 1, 1982.

Approved. Motion by Commissioner Moody, seconded by Commissioner Cohen and adopted by the following vote: ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none.

PARTIAL PAYMENT OF PENSIONS - ARTICLE XVIII - 2

In accordance with the City Attorney's advice, $500 per month of the pension payable to Erwin Robertson, Fire Service Pensioner, to be paid to his former wife, Helen Robertson, effective October 1, 1982. An additional amount is also to be paid to Helen Robertson for arrearages of $1,500. The total amount of payments to her are not to exceed 50% of the gross monthly pension payable to Erwin Robertson. In accordance with the City Attorney's advice, 50% of the pension payable to Thomas McGhee, Police Service Pensioner, to be paid to his former wife Mildred McGhee, effective October 1, 1982.

Approved. Motion by Commissioner Cohen, seconded by Commissioner Marcus and adopted by the following vote: ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none.

FINDINGS OF FACT - ARTICLE XVIII - 5

FIRE

Robert C. Anderson

POLICE

A. Ronald B. Clem B. Albert J. Gastaldo C. John C. Morris

D. Michael R. Pearsall Approved. Motion by Commissioner Marcus, seconded by Commissioner Moody and adopted by the following vote: ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none.

Commissioner Marcus queried Assistant City Attorney, Mr. Siegfried O. Hillmer, about the recent Dakins vs. Board of Pension Commissioners court case. Mr. Hillmer explained to the Board the immediate impact of this court decision and discussion evolved around future consequences.

DISABILITY CASES - NEW - ARTICLE XVIII - 2

Captain II Edward W. Arnold Service-connected disability pension granted, effective date to be determined administratively, in the monthly amount of $1,734.06 or 50% of $3,468.12, with no further medical reviews. Motion made by Commissioner Marcus and seconded by Commissioner Moody; ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none. Mr. Arnold was present and represented himself.

Firefighter II Donald Hoffman

Service-connected disability pension granted, effective June 29, 1982, in the monthly amount of $1,801.89 or 70% of $2,574.13, plus cost of living increments now due, with no further medical reviews. Motion made by Commissioner Moody and seconded by Commissioner Marcus; ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none. Mr. Hoffman was present with his attorney, Ronald Stillman.

At this point, President Burdorf recessed the meeting for lunch. The meeting reconvened at 1:45 p.m.

DISABILITY CASE - REQUEST TO FILE A NEW APPLICATION - ARTICLE XVIII - 1

Police Officer II Edward I. Fischer

Granted. Request for permission to file a new application was granted. Motion made by Commissioner Cohen and seconded by Commissioner Moody; ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none. Mr. Fischer was present with his attorney, Edward Faunce.

President Burdorf recessed the meeting for five minutes.

DISABILITY CASE - NEW - ARTICLE XVIII - 1

Police Officer II Paul A. Franco

Denied. Able to perform duties to which he may be assigned. Motion made by Commissioner Cohen and seconded by Commissioner Moody; ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none. Mr. Franco was present with his attorney, Mary Ann Healy. Capt. Keith W. Bushey, Mr. Franco's former co-worker, Police Department; Sgt. John M. Welles, Sick and IOD Coordinator, West Los Angeles Division, Police Department and Victoria LoNigro, Pensions Department testified regarding Mr. Franco.

The Franco hearing started in the morning session. It was continued at 12:30 p.m. Board then handled Fischer matter and took lunch recess. Board resumed the Franco hearing after lunch.

DISABILITY CASE - FURTHER CONSIDERATION - ARTICLE XVIII - 1

Police Officer III James A. Read

Deferred. Motion made by Commissioner Marcus to reopen case failed for lack of a second. President Burdorf directed that further consideration of the James Read case be deferred for a full Board. Mr. Read was present his attorney, Michael Roberts.

DISABILITY CASES - NEW - ARTICLE XVIII - 3

Police Officer II Jimmy L. Peppers Deferred. President Burdorf directed that this case be deferred because of time constraints. Mr. Peppers was not present but was represented by his attorney, Michael Roberts.

DISABILITY CASES - NEW - ARTICLE XVIII (CONT.)

Police Officer III William D. Myers

Service-connected disability pension granted, effective date to be determined administratively, in the monthly amount of $1,290.21 or 50% of $2,580.42, with no further medical reviews. Motion made by Commissioner Marcus and seconded by Commissioner Moody; ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none. Mr. Myers was present with his attorney, Michael Roberts. Detective II Dean A. Parsons

Service-connected disability pension granted, effective date to be determined administratively, in the monthly amount of $1,775.84 or 60% of $2,959.74, with review in two years with three medical examinations. Motion made by Commissioner Moody and seconded by Commissioner Marcus; ayes, Commissioners Cohen, Marcus, Moody and President Burdorf - 4; noes, none. Mr. Parsons was present with his attorney, Michael Roberts.

At this point in the proceedings, President Burdorf called for adjournment. The meeting adjourned at 3:45 p.m.

I j;~ ~~ tary