MINUTES OF THE BOARD OF TRUSTEES
August 5, 2010
CALL TO ORDER
President David Marino called the meeting of the Board of Trustees of the Los Angeles Firemen’s Relief Association to order at 10:05 a.m.
ROLL CALL
MEMBERS PRESENT:
- David Marino, President
- John Jacobsen, Vice President
- Trustee Jeff Cawdrey – Battalion 1
- Trustee Juan Albarran, Battalion 3
- Trustee Mark Akahoshi, Battalion 5
- Trustee Tim Larson – Battalion 6
- Trustee Robert Steinbacher – Battalion 7
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee Gary Matsubara – Battalion 11
- Trustee Craig White – Battalion 12
- Trustee Michael Overholser – Battalion 14
- Trustee Steven Domanski – Battalion 15
- Trustee Francisco Hernandez – Battalion 17
- Trustee Chris Hart – Battalion 18
- Trustee David Ortiz – Headquarters 1
- Trustee Kurt Stabel – Headquarters 2
- Trustee Barry Hedberg – Pension 2
- Trustee Ralph Brownell – Pension 3
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Andrew Kuljis, Secretary (Excused)
- Trustee James Coburn – Battalion 4 (Excused)
- Trustee Gene Bednarchik – Battalion 2 (Excused)
- Trustee Chris Stine – Battalion 13 (Excused)
- Trustee David Lowe – Pension 1 (Excused)
GUESTS:
- Robert Olsen, L.A. Retired Fire & Police
- Dennis Mendenhall, Retired
- Garth Flint, Beacon Pointe Advisors
INVOCATION & Flag Salute
David Ortiz led the invocation.
RATIFICATIONS OF MINUTES
David Marino entertained a motion to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held July 8, 2010. Gary Matsubara so moved. David Peters 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 July 8, 2010.
PRESIDENT’S REPORT
1) President Marino informed the Board that they have hired a new employee for the Web Editor Position; David Vienna. David was introduced to the Board.
2) David Marino informed the Board that in the month of August, the by-laws require that they have nominations for the position of President and Vice President.
David Peters nominated John Jacobsen for the position of President for 2011. Gary Matsubara seconded. David Marino asked if there were any other nominations for the President position. There were no other nominations.
John Jacobsen accepted the nomination for the President position for 2011.
David Peters nominated Juan Albarran for the Vice President position for 2011. Kurt Stabel seconded. David Marino asked if there were any other nominations for Vice President. There were no other nominations.
Juan Albarran accepted the nomination for the Vice President position for 2011.
David Marino reminded the Board that according to the by-laws, the election of the 2011 President and Vice-President will occur at the September Board Meeting. Nomination will remain open until that time.
David Marino informed the Trustees that elections were coming up for the odd numbered Battalions and those planning to run needed to submit their written statement for their Trustee position. Ralph Brownell informed that he was not going to run for his Pension 3 position.
3) David Marino informed that McCosker from UFLAC had sent a letter requesting that their employees be added to the LAFRA Kaiser Medical Plan. He stated that their Kaiser plan premiums have increased substantially which was the reason for their request. He indicated that they have addressed many questions. He stated that he, David Smith and Dawna will write and review a memorandum of understanding. before they agree accept these people into our plan. They would be in a newly created “enrollment group” within the plan.
The committee recommends that they approve the MOU between UFLAC and LAFRA that would result in including UFLAC employees on the LAFRA Kaiser plan. He indicated that there are five employees and one widow coming to the plan. He mentioned that it may be a total of 16 people. There was no further discussion or objections.
Motion carried to approve the MOU between UFLAC and LAFRA to include UFLAC employees on the LAFRA Kaiser plan.
4) David smith informed that the member benefits mailing will begin to go out next week. He indicated that a letter from the President with all information about what is in the data system as far as beneficiaries, dependents and deductions as well as brochures on Relief benefits and Estate Planning will be included. He stated that they will phase the mailing over a two week period to reduce the impact on phone calls to staff.
VICE PRESIDENT’S REPORT
1) John Jacobsen informed the Board of the Early Retiree Reinsurance Program and indicated that they have been preparing an application to send that could possibly reimburse the LAFRA Medical Plan a substantial amount from the Healthcare Reform Act. He indicated that Dawna has assisted with preparing the application and stated that he will sign and send it out today.
2) Jacobsen informed that they have signed the contract with web consultants Trellon, LLC. He stated that they have done their due diligence and checked Trellon’s references on their performance.
3) Jacobsen referred to workers comp for actives members and stated that as of July 1st, the City of Los Angeles has agreed upon a list of several items that would be pre-authorized for treatment on an injury/illness. He indicated that he will send to the Trustees for their review. He stated that the City’s personnel department had given Tristar a list of approved items that would not need a second review for treatment.
4) Jacobsen mentioned that Hart, Hedberg and himself had attended a technology conference in Boston and reported on what they discussed and learned. He also indicated that there was a lot of discussion on social networks and how the social networks are affective in getting the Association’s message out.
5) Jacobsen informed that the Pension Dept. has recently separated from the City’s I.T. department and stated that they are trying to send data electronically and on a timelier basis.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer presented the year-to-date expenditures compared to the budget. He stated that overall, the Association was in good financial shape and meeting most budget targets.
2) David Smith informed the Board that they received $650K from the Retiree Drug Subsidy which was not in the year-to-date expenditure report. He also mentioned that they have been notified by Kaiser that they will be sending LAFRA a refund check for a security deposit in the amount of $250K for establishing a good payment record.
3) David Smith stated that he received a call from Karen Wagner, Executive Director of a newly create LAFD Foundation. He has scheduled a meeting with Marino Jacobsen and himself with Karen Wagner her mission and how it compares to the WODFF mission it is expected that the new foundations role is to raise money to provide equipment, material and training for the department to augment the City budget. He stated that he will report back to Board after the 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 $1,350,207.29. He stated that $500K was for the Kaiser pass through and $77,000 for the insurance liability premiums. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $1,350,207.29.
The committee recommends and I so move to pay the professional fees in the amount of $74,605.78. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $74,605.78.
The committee recommends and I so move to enter into contract with Donor Perfect and Trellon, LLC for up to $50K for web site enhancements. There was no discussion or objections.
Motion carried to enter into contract with Donor Perfect and Trellon, LLC. for up to $50K for web site enhancements.
The committee recommends and I so move to hire part-time employee, Jody Houser for 20 hours per week not to exceed $8,000 to perform web site enhancement, increase sales for Dalmatians and marketing until the end of December. He stated that they will re-evaluate the position at the end of December.
Motion carried to hire part-time employee, Jody House at 20 hour per week not to exceed $8,000.
The committee recommends and I so move to change the Retiree Grapevine Assessment to a $3 per month deduction. This is due to the City contracting with Northern Trust who is not capable of doing an annual deduction for the Grapevine on retirees.
Motion carried to change the Retiree Grapevine Assessment to a $3 per month deduction.
The committee recommends and I so move to approve up to ten Trustees plus one employee, David Wagner, to attend the IFEPB Annual Conference. There was no discussion or objections.
Motion carried to approve up to ten Trustees plus one employee to attend the IFEBP Annual Conference.
INVESTMENT COMMITTEE REPORT
Garth Flint presented to the Board the 2nd quarter investment report for 2010. He stated that they are getting some growth at around 2% and indicated that it may seem that the recession is slowing down. He showed a good GDP number for the 4th quarter of last year but stated that it will be less for the 2nd quarter of this year. He stated that the housing markets have gotten better but there are still problems. He indicated that inflation is not a problem and not expected for another 2 to 4 years. He stated that the global recovery will be positive but not by a big amount. He indicated that emerging markets is where the growth drivers are and stated that they have that exposure in both the International Managers as well as Lazard. He reviewed the Executive Summary Allocation and Performance as of 6/30/10 and stated that in the five year period, they have outperformed the policy benchmark by 4.3%. He indicated that it has been a tough year for managers, however, if you look at Knightsbridge and Cohen & Steers 5 – 7 year composite, they have done very well. He stated that Stralem has outperformed the benchmark for the 1 year composite, but have also done well with the 5 and 7 year. He indicated that they may want to consider replacing J.W. Seligman because their numbers have fallen and have been less than stellar relative to other candidates. He stated that Artisan have had good numbers and good percentile ranking in terms of other International managers. He referred to the Asset Allocation and indicated that they are in line but slightly over weighted in Fixed Income but not beyond the maximum range.
MEDICAL COMMITTEE REPORT
David Peters 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 the applications to the Medical Plan.
David Peters informed that open enrollment is progressing and materials will be sent out in October to be effective January 1, 2011. He reported that they have approved sending up to four committee members to meet with HealthScope Benefits in Arkansas. He also stated that they continue to investigate Long Term Care coverage and how the new healthcare reform will affect the plan and cost the plan money.
RELIEF COMMITTEE REPORT
Juan Albarran presented the following motion.
The committee recommends and I so move to pay:
The Sick & Injury benefits in the amount of $64,165.66,
The Estate Planning benefit in the amount of $4,800,
The Relief Death Benefits in the amount of $27,000,
The Life & Accident Withdrawals in the amount of $4,395.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
MEMORIALS
James D. VanDell
John D. Olson
Garland N. Hoover
Fitzhugh L. Banks
Dale M. Packard
Donald E. Sivacoe
Juan Albarran read the names of members who recently passed and asked for a moment of silence from the Board.
ASSISTANCE COMMITTEE
Juan Albarran presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $7,155.91 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $7,155.91 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for July 2010
- MANNY FRAUSTO FROM MY RETIREMENT DINNER
- CEDRIC CLEVELAND
- MARY V DUDLEY IN MEMORY OF OUR DEARLY BELOVED HUSBAND AND FATHER DARRELL DUDLEY
- HOLLYWOOD POST NO.43
- JD & BJ PROPERTIES IN MEMORY OF OUR FRIEND WILLIE DUNN HE IS STILL MISSED
- WILLIAM M. APPERSON IN MEMORY OF MOE ROGERS, GEORGE HESS, DICK LAMBINE, ART RAMIREZ, JIM PERRY, JACK DARR, JOHN SCHINDLE
- ROBERT COLLIS IN GRATITUDE FOR THE DURABLE MEDICAL EQUIPMENT
- RICHARD H SCHULTZ IN MEMORY OF ORBAY SCHULTZ
- FIRE STATION NO. 69 FROM OUR FIRE EXTINGUISHER FUND
- ARTURO R. JACINTO
- MICHAEL J AMBARIAN
- BRIANNA LEDESMA IN GRATITUDE FOR THE SCHOLARSHIP FUND
- HELEN L SCHULZ
- ROBERT P. LUTZ IN MEMORY OF BILL WITTE & MOE ROGERS
- CAROL A DOLL IN GRATITUDE FOR THE DURABLE MEDICAL EQUIPMENT
- BETTY LARSON
- ANTON FELANDO IN MEMORY OF DARRELL DUDLEY
- RICHARD LAMBINE
- FIRE STATION NO. 15 FROM YOUR FIRE EXTINGUISHER FUND
- FIRE STATION NO. 109 FROM OUR FIRE EXTINGUISHER FUND
- FIRE STATION NO. 9 FROM OUR FIRE EXTINGUISHER FUND
- NESTLE
- FIRE STATION NO 59 FROM OUR FIRE EXTINGUISHER FUND
- DAVID T. FORD IN MEMORY OF MY DAD LEO C. FORD
- NANCY M ARNESEN IN MEMORY OF CHRIS IRONS
- ANONYMOUS DONATION
- MARJORIE J WILLIAMSON
- NESTLE
- WILLIAM BAILEY
- FIRE STATION NO. 44 FROM OUR FIRE EXTINGUISHER FUND
- HOMER M. MILLER IN MEMORY OF MARGE & PETE PEARSON
- OSCAR GUTIERREZ
- LESTER H EVANS IN MEMORY OF MOSES C. ROGERS
- COLIN C. KELLAWAY IN MEMORY OF MR. ROBERT MCINTOSH
- SIMI VALLEY FIREHOUSE BREAKFAST GROUP
- JOHN F VIRGIL
- JOHN L. PECEL
The committee recommends and I so move to assist stated surviving spouses with financial assistance and medical premiums. There was no discussion or objections.
Motion carried to assist stated surviving spouses with financial assistance and medical premiums.
EMERGENCY ADVANCEMENTS
Juan Albarran presented the following motions.
The committee recommends and I so move to advance stated funds to surviving spouses. There was no discussion or objections.
Motion carried to approve emergency advancements as stated.
GRAPEVINE/WEBSITE REPORT
Chris Hart asked all Trustees to encourage members to join the website to capture everyone’s email addresses. He mentioned that meetings and other events are posted on the website. He also mentioned that they will be sending postcards to the membership asking them to join.
He referred to the Dalmatians store and indicated that they have begun to carry a new style of T-shirts. He stated that the design comes from American Heroes Couture. He indicated that they have been discussing selling Fire Station T-shirts at the store as well. He also mentioned that they will begin to use Facebook and Twitter to market the store.
SETTING DATES
1) Magic Mountain LAFD Night – August 27th
2) Colorado Springs Memorial – September 11th
3) LAFD Invitational Golf Tourn – September 13th
4) Member Appreciation @ Saddle Ranch – October 17th
5) Open House – November 6th
6) Annual IFEPB Conference (Hawaii) – November 14th – 17th
RETIREMENT DINNERS
1) Jorge Aquin – August 5th Knollwood Country Club (Doak/Marino)
2) Terry Manning – August 6th Angeles National Golf Club (Steinbacher/Marino)
3) Larry Wilson – August 7th Brookside Golf Course
4) Joe Robles – August 7th Robles House, Moorpark (Domanski)
5) Leonard C. Thompson – August 21 Ciudad “On the Plaza” (DeFeo)
6) Sam J. Faruzzi – August 26th The Odyssey Restaurant
7) Dan Winter – August 30th Sagebrush Cantina (Marino)
8) Noel Murchet – September 10th Ports O’Call Restaurant
9) Rick Villata – September 22nd Taix Restaurant
ADJOURNMENT
David Marino entertained a motion to adjourn. David Peters so moved. Doak Smith seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 11:56am.
David Marino, President
