MINUTES OF THE BOARD OF TRUSTEES
March 7, 2012
CALL TO ORDER
President John Jacobsen called the meeting of the Board of Trustees of the Los Angeles Firemen’s Relief Association to order at 10:37 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn
- Trustee Jeff Cawdrey
- Trustee Chris Stine
- Trustee Robert Steinbacher
- Trustee Francisco Hernandez
- Trustee Rick Godinez
- Trustee Steven Domanski
- Trustee Gary Matsubara
- Trustee Kurt Stabel
- Trustee David Ortiz
- Trustee David Lowe
- Trustee Tim Larson
- David Ned Smith – Executive Director
- Todd Layfer – Controller
MEMBERS ABSENT:
- Trustee Gene Bednarchik (Excused)
- Trustee Michael Overholser (Excused)
- Trustee Doak Smith (Excused)
- Trustee Chris Hart (Excused)
- Trustee Craig White (Excused)
- Trustee Mark Akahoshi (Excused)
- Trustee David Peters (Excused)
- Trustee Steve Tufts (Excused)
- Trustee Barry Hedberg (Excused)
GUESTS:
- Dennis Mendenhall, Retired
INVOCATION & Flag Salute
Andy Kuljis led the invocation. David Lowe led the flag salute.
RATIFICATION OF MINUTES
John Jacobsen entertained a motion to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held February 1, 2012. Gary Matsubara so moved. Jeff Cawdrey seconded the motion. There was no further discussion or objections.
Motion carried to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held February 1, 2012.
PRESIDENT’S REPORT
1) Jacobsen informed the Board that open enrollment for the medical plan will be pushed back approximately two weeks in hopes of the Pension Board determining the early retiree subsidy rate. He indicated that they would like to have the open enrollment materials as accurate as possible with the correct information. The start of the open enrollment will be April 16th.
2) Jacobsen referred to the Pension meeting for affecting retired members younger than 65. He mentioned that Pensions will decide on whether or not to increase their subsidy. He stated that the Pension staff report had recommended a 5% increase but was voted down as was a motion for 7% increase. The Pension Board decided to table the issue and send back to the Pension staff to come back with additional information for the March 15th Board meeting.
3) Jacobsen referred to the Pension audit and mentioned that they going through the final stages of them auditing the medical subsidy. He indicated that they have had a preliminary meeting with the auditor to discuss their findings, which were minimal and favorable. He stated that when we receive the final draft he and Bradawn will offer suggestions to be included into the report before it is final.
4) Jacobsen mentioned the Firefighter of the Year Luncheon honoring Doak Smith and indicated that it will be on the next committee day, March 21st. He encouraged all Trustees to attend the luncheon and reminded them that the attire is coat and tie.
5) Jacobsen indicated that they have had some issues concerning the continued use of personal Trustee emails. He stressed the importance of Trustees using their LAFRA email to maintain security.
INVESTMENT COMMITTEE REPORT
Steinbacher presented the following motion.
The committee recommends and I so move to enter into contract with the following fund managers; Titan Securities (hedge fund) at $1 million, E.I.I. (global REITS fund) at $1 million and F.P.A. at $1 million. Implementation of these investments is dependent on a favorable due diligence meeting at each of their offices. There was no further discussion or objection.
Motion carried to contract with the above three fund managers at $1 million each.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith provided an update on the website and indicated that they are splitting the current website into two websites. He mentioned that David Vienna has drafted a website for the WODFF and fundraising efforts. He stated that the second website will focus on firefighters and their families and mentioned that they have had two consultants look at the site and will ask them to give us a proposal to modify the site. He stated that they will report back to the committee once they receive the proposals.
2) Todd Layfer provided a status update on the financial audit. He mentioned that the auditors should be done by the end of the day and indicated that everything was going well. He indicated that their findings and report will be presented to the Audit Committee sometime in April and Tonetta Connor will present at the May Board meeting.
ADMINISTRATIVE COMMITTEE REPORT
Robert Steinbacher presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $1,031,153.14. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $1,031,153.14.
The committee recommends and I so move to pay the professional fees in the amount of $69,097.48. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $69,097.48.
David Smith reported on the FRITS database system and indicated that it is written in the software FoxPro that has not been maintained by Microsoft for approximately 10 years. He stated that in about three to five years, FRITS will no longer be compatible with Windows which will create a problem. He stated that the Administrative Committee has approved the first of three phases which is to hire a FoxPro expert to become familiar with FRITS and provide documentation. He will then provide a cost estimate to perform the second phase which would be to write a specification to convert FRITS to a compatible platform. David Smith indicated that if the Board decides to do the second phase, we be in a position at year end 2012 to know cost in order to l budget for 2013 or wait until 2014 to make the conversion.
The committee recommends and I so move to approve up to $4K for the Phase I portion of the upgrade. There was no further discussion or objection
Motion carried to approve up to $4K for the Phase I portion of the upgrade.
The committee recommends and I so move to approve contracting with Healthcare Actuarials for up to $10K for the actuarial study. David Smith also mentioned that they had budgeted $20K in this year’s budget for the actuarial study of Relief benefits. There was no further discussion or objections.
Motion carried to approve contracting with Healthcare Actuarials for up to $10K for the actuarial study of Relief benefits.
1) Jacobsen stated that in the next month, they will have a meeting to discuss Policy Book review and potential By-law changes. He stated that there has been some discussion on revising the By-laws and indicated that any revisions need to be coordinated through David Lowe, the By-laws Chairman.
2) Jacobsen informed the Trustees that they should request reimbursement of their travel expenses no later than 60 days after the conference/seminars. He indicated that this would help ease the accounting department’s tracking of expenses and would allow for quick reimbursement to the Trustees. He also stated that any Trustee who wishes to attend a conference and/or seminar, they should first obtain approval from the President and then inform Irma so that she can register and make the necessary arrangements.
MEDICAL COMMITTEE REPORT
Robert Steinbacher presented the following motions.
The committee recommends and I so move to accept the applications to the Medical Plan. There was no discussion and no objections.
Motion carried to accept all applications to the Medical Plan.
The committee recommends and I so move to enter into contract with the Part D Subsidies. He explained that the company reviews Medicare reimbursements for potential additional payment for the Medical Plan. They are only paid if they find additional savings. There was no further discussion or objections.
Motion carried to enter into contract with Part D Subsidies.
RELIEF COMMITTEE REPORT
James Coburn informed the Board of the previous member appeal which requested reinstatement as a member of the Relief Association. He indicated that after further review and information the committee has decided to reconsider her appeal.
The committee recommends and I so move to reinstate the member upon payment of all back dues and continued monthly deduction towards the outstanding advancement. There was no discussion or objections.
Motion carried to reinstate the member upon payment of all back dues and continued monthly deduction towards the outstanding advancement.
James Coburn mentioned there was another individual that was requesting to be reinstated as a member of the Relief. He stated that at the time, the ex-member initially stated that he no longer wanted to be a member of the Relief Association when he retired..
The committee recommends and I so move that they ask the individual to appeal in person to the Relief Committee and also to the full Board. He also stated that the member must also pay all back dues. There was no further discussion or objections.
Motion carried to ask the individual to appeal in person to the Relief Committee and also to the full Board.
James Coburn presented the following motion.
The committee recommends and I so move to pay:
The Sick & Injury benefits in the amount of $16,492.68
The Estate Planning benefit in the amount of $7,800,
The Life & Accident Death Benefit in the amount of $12,000,
The Relief Death Benefits in the amount of $58,500,
The Life & Accident Withdrawals in the amount of $2,992.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
James Coburn read the names of members who recently passed and asked for a moment of silence from the Board.
MEMORIALS
Kirk F. Basore
Richard L. Martin
Carl R. Marino
Howard R. Mason
Lloyd S. Adams
George W. Allen
Ben H. Shepherd
Clarence E. Neighbors
Bernard Subkoski
Arthur J. David, Jr.
John E. Squire
Russell D. Evans
Robert V. Daines
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $13,816.28 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $13,816.28 to the Widows, Orphans & Disabled Firemen’s Fund.
The committee recommends and I so move to approve the financial assistance applications for surviving spouses, active and retired members. There was no discussion or objections.
Motion carried to approve the financial assistance applications for surviving spouses, active and retired members.
EMERGENCY ADVANCEMENTS
James Coburn presented the following motion.
The committee recommends and I so move to approve the emergency advancement applications for active and retired members. There was no discussion or objections.
Motion carried to approve the emergency advancement applications for active and retired members.
SECRETARY REPORT
Andy Kuljis stated that they determined the need to purchase some new cemetery plots in areas that they do not have any. He also mentioned purchasing some cemetery plots in Catholic cemeteries. He will report back to the Board when he has a specific proposal. He also informed the Board that the Loughran memorial service will be held on Saturday at Fire Station 112.
SCHOLARSHIP COMMITTEE REPORT
Rick Godinez provided an update to the Scholarship Program and stated that the test will be held Saturday, April 28th. He mentioned that there has been some confusion between the LAFD Scholarship and the LAFRA Scholarship. He stated that they have coordinated the dates with the LAFD Scholarship to avoid confusion.
NEW BUSINESS
Jacobsen informed the Board that they had been successful in getting some widows their subsidy from the City. He mentioned that Ken Buzzell assisted in them getting their subsidies.
SETTING OF DATES
1) Hook & Ladder Enduro – March 24th
2) Corbin Bowl – May 6th
3) Lane Kemper Softball Tournament – May 16th
4) Grass Valley – May 16th – 20th
5) Hope for Firefighters – June 7th
6) Over the Line Tournament – September 13th
7) LAFD Invitational Golf Tournament – September 24th
8) IFEBP Annual Employee Benefits Conf. – November 11th – 14th
9) LAFRA Open House – December 1st
RETIREMENT DINNERS
1) Louis Origel – March 9th Kyoto Grand Hotel (Coburn/Larson)
2) Kenneth Cassidy – March 11th Edendale (Albarran)
3) Herman Quaintance – March 31st Ports O’Call Restaurant (Kuljis)
4) Robert Holloway – April 12th Kyoto Grand Hotel (Albarran)
5) Lon Roberts – April 21st LAFD Air Operations (Hernandez)
6) Gary Ingham – April 28th 94 Aero Squadron (Lowe)
7) Rudolfo Martinez – April 28th Friendship Auditorium (Bednarchik)
8) Fred Lopez – April 29th Sportsmen’s Lodge (Godinez)
9) Luis Jaramillo – May 5th Marriott Courtyard Monrovia
10) Chuck Currey – May 11th Altadena Town & Country Club
11) Richard McClure – May 30th Castaway (Bednarchik)
ADJOURNMENT
John Jacobsen entertained a motion to adjourn. Gary Matsubara so moved. Juan Albarran seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 11:40pm.
John Jacobsen, President