MINUTES OF THE BOARD OF TRUSTEES
June 5, 2013
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 10:27 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn
- Trustee Francisco Hernandez
- Trustee Robert Steinbacher
- Trustee Doak Smith
- Trustee Gene Bednarchik
- Trustee Steven Domanski
- Trustee Jeff Cawdrey
- Trustee Craig White
- Trustee David Ortiz
- Trustee Steve Ruda
- Trustee Steve Berkery
- Trustee Barry Hedberg – Pension
- Trustee David Lowe – Pension
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Michael Overholser (Excused)
- Trustee Rick Godinez (Excused)
- Trustee Mark Akahoshi (Excused)
- Trustee Chris Hart (Excused)
- Trustee Steve Tufts (Excused)
- Trustee Chris Stine (Excused)
- Trustee David Peters (Excused)
- Trustee Tim Larson – Pension (Excused)
GUEST:
- 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 April 3, 2013. Gene Bednarchik so moved. David Lowe seconded. There was no further discussion or objections.
Motion carried to ratify and dispense with the reading of the minutes of the Board of Trustees held April 3, 2013.
Jacobsen entertained a motion to ratify and dispense with the reading of the minutes of the Special Board of Trustees meeting held March 12, 2013. David Lowe so moved. Gene Bednarchik seconded. There was no discussion or objections.
Motion carried to ratify and dispense with the reading of the minutes of the Special Board of Trustees meeting held March 12, 2013.
Jacobsen entertained a motion to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held May 1, 2013. David Lowe so moved. Gene Bednarchik seconded. There was no discussion or objections.
Motion carried to ratify and dispense with the reading of the minutes of the Board of Trustees held May 1, 2013.
PRESIDENT REPORT
1) John Jacobsen informed that he will be appointing Steve Berkery to the vacant Trustee position.
Jacobsen entertained a motion to appoint Steve Berkery to the vacant Trustee position. Craig White so moved. Doak Smith seconded. There was no discussion or objections.
Motion carried to appoint Steve Berkery to the vacant Trustee position.
Andy Kuljis proceeded to give the Oath of Office to Steve Berkery.
2) Jacobsen addressed the purchase of the building and indicated that they are still in the due diligence process. David Smith provided a summary of what was being done during the due diligence process which included property assessments, inspections, property profile, facility upgrade cost exposures, remodel issues, on-going operating costs and a summary of current leases. Jacobsen indicated that the due diligence period ends on June 11th and therefore stated that they need to make a decision as a Board whether or not to move ahead with the purchase of the property. David Smith added that they have learned that the building is built very well. He mentioned that they had some concern about the parking spots in the back of the building because of the Edison easement. He also indicated that the longest period for a licensing agreement with Edison is five years and would cost $6,300 annually for license. He referred to the leaseback option and indicated that the seller’s minimum leaseback would be until December 2013 or a maximum of September 2014, but has agreed to pay our Credit Union lease extension.
Steve Domanski motioned to approve and proceed with the purchase of the stated property. David Lowe seconded. There was no further discussion or objections.
Motion carried to proceed with the purchase of the stated property.
David Smith asked for the Board’s approval to enter into negotiations with Edison for the new license at the close of escrow.
Steinbacher motioned to approve entering into negotiations with Edison for a five-year license agreement for easement parking at $6,300 annually. Craig White seconded. There was no discussion or objections.
Motion carried to approve entering into negotiations with Edison for a five-year license agreement for easement parking.
VICE PRESIDENT REPORT
1) Juan Albarran referred to the LAFRA Reunion held the week before and indicated that it was a good turnout. He thanked those that attended including the LAFRA staff, Trustees and other agencies such as HealthScope and Unum.
INVESTMENT REPORT
Robert Steinbacher informed that on June 26th they will have an Investment Committee meeting to review the portfolio and performance of the money managers. He mentioned that he and John had gone to New York to visit some of the managers. He mentioned that they had learned of the Morningstar conference that a couple of Trustees will attend.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith informed that the back van had sold last week for $17,500. He mentioned that they had placed an ad in Craigslist and Truck Trader and received a few offers.
2) Todd Layfer presented the first quarter expenditures compared to the budget for 2013. He reviewed all operational costs, member benefits paid and contributions to the WODFF. He stated that everything was running almost on target with some running below the actual budget. He referred to the investment balances and indicated that the professional fees were a little higher in the first quarter, but stated that the portfolio was performing well.
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 $1,048,245.01. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $1,048,245.01.
The committee recommends and I so move to pay the professional fees in the amount of $156,639.34. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $156,639.34.
The committee recommends and I so move to approve up to $720 for a foursome of golf and tee sign for the Craig Alder Golf Tournament on September 9th. There was no discussion or objections.
Motion carried to approve up to $720 to purchase a foursome of golf and tee sign for the Craig Alder Charity Golf Tournament.
The committee recommends and I so move to approve up to $10K for new hardware and software for the Grapevine staff. There was no discussion or objections.
Motion carried to approve up to $10K to purchase new hardware and software for the Grapevine staff.
MEDICAL COMMITTEE REPORT
Barry Hedberg presented the following motion.
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.
RELIEF COMMITTEE REPORT
James Coburn presented the following motion.
The committee recommends and I so move to pay:
The Sick & Injury benefits in the amount of $15,876.80
The Estate Planning benefit in the amount of $3,800,
The Relief Death Benefits in the amount of $58,500.
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
Clarence J. Altree
John K. Mathers
Raymond C. Bertolo
Daniel J. Slagh
Leo Dempsey
Alvin S. Weaver
Frank S. Brady
Stanley R. Dailey
Gerald A. Lehmann
Charles S. Parker
Charles W. Johnson
Calvin S. Ramussen
John McIntosh
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $2,832.70 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $2,832.70 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.
Juan Albarran stated that the committee had approved the maximum allowable for a member to cover funeral expenses. He asked to get Board approval for up to $32K for funeral expenses for a member’s spouse.
Gene Bednarchik so moved. Craig White seconded. There was no discussion or objections.
Motion carried to approve up to $32K for a member advancement for funeral expenses.
GRAPEVINE/WESBITE REPORT
Jacobsen stated that they are moving along with their LAFRA.org site and should have it completed by next month.
BY-LAW COMMITTEE REPORT
David Lowe stated that all the By-law revisions have been submitted and will submit them at the next Board meeting for review. He also asked for clarification of what a non-active member of the Association was. Jacobsen indicated that there would be definitions in the by-laws however, stated that they would have to research the issue further.
SETTING OF DATES
1) L.A. Retired Fire & Police Annual BBQ – June 5th
2) Hope for Firefighters – June 6th
3) Estate Planning Seminar – July 17th
4) IFEBP Wharton School of Investments – September 9th – 12th
5) Over the Line Tournament – September 11th
6) Colorado Springs Memorial – September 21st
7) LAFD Invitational Golf Tournament – September 23rd
8) LAFD Fallen Firefighter Memorial – October 13th
9) IFEBP Annual Conference – October 20th – 23rd
10) LAFRA Open House – December 7th
RETIREMENT DINNERS
1) James L. Stiglich – June 12th The Odyssey
2) James F. Cairns – June 15th Mountain Gate Country Club
3) William E. Thost Jr. – June 28th Quiet Cannon
4) Rich Hanson, Fred Ramsey, Jerry Brown – July 12th Fire Station 80
5) Bobby Mihlhauser – July 19th Marriott Warner Center
6) Robert Franco – July 26th Ports O’Call
7) Bradley Grossman – August 21st Ports O’Call
8) Jay Freeman – August 24th Jay’s Backyard
9) Mike O’Gorman – September 14th Elk’s Lodge #966
ADJOURNMENT
John Jacobsen entertained a motion to adjourn. Craig White so moved. David Lowe seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 11:39 pm.
John Jacobsen, President