b'Mike Meadows Photo2007 The election period for sworn Port Police Officersreport on climate change. This change was in light to transfer to Tier 5 closed on January 5, 2007, withof survey results released by an advocacy group 40PortPoliceOfficerselectingmembershipinknownastheCarbonDisclosureProject(CDP). Tier 5. The study determined that 80% of U.S. companies On February 1, 2007, the Board of Fire and Policebelievethatclimatechangeposescommercial Pension Commissioners (Board) created an Auditrisks for their businesses. As a result, investors are Committee, followed by the creation of an Internalencouraging more environmental disclosure from Audit function within the System. companies. The Supreme Court had ruled in April On March 6, 2007, voters passed a Charter amend- 2007 that greenhouse gases are a pollutant that ment giving the City Council authority to establish,may be regulated by the Environmental Protec-by ordinance, a voluntary Public Service Purchasetion Agency.Program.ThefirstmanagementauditoftheSystemwas The City Council approved an extension of DROP,conductedbyIndependentFiduciaryServices commencing May 1, 2007 and ending April 30, 2012,withtheresultsreleasedonDecember3,2007. and excluded participation by the Chief EngineerCharterSection1112requirestheCityController, of the Fire Department and the Chief of the Policethe Office of the Mayor, and the Los Angeles City Department. Council to complete a management audit once every five years to be conducted by an indepen-InJuly2007,theSystembeganauditsofthedent,qualifiedmanagementauditingfirm.The retireemedicalanddentalplansofferedbythepurposeoftheauditwastoexaminewhether Los Angeles Firemens Relief Association, the LostheSystemoperatesinthemostefficientand Angeles Police Protective League, the Los Angeleseconomicalmanner.Theauditfoundthatthe Police Relief Association, and the United Firefight- System was generally operating efficiently and in ers of Los Angeles City. The scope of the auditsaccordance with industry best practices, providing includedeligibility,benefits,administration,andgood investment returns overall, utilizing reason-financial analysis. ableactuarialassumptionsandmethods,and On September 6, 2007, the Board voted to revisepre-fundinghealthinsurancepremiumsubsidy itsproxyvotingguidelinestovoteFORshare- benefits.holderproposalsthatrequestmanagementto SECTION 9 Milestones 175'