MINUTES OF THE BOARD OF TRUSTEES
August 4, 2011
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 10:40 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee Jeff Cawdrey – Battalion 1
- Trustee Gene Bednarchik – Battalion 2
- Trustee James Coburn – Battalion 4
- Trustee Gary Matsubara – Battalion 5
- Trustee Chris Hart – Battalion 6
- Trustee Rick Godinez – Battalion 7
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee Chris Stine – Battalion 11
- Trustee Craig White – Battalion 12
- Trustee Mark Akahoshi, Battalion 13
- Trustee Steven Domanski – Battalion 15
- Trustee Steve Tufts – Battalion 18
- Trustee David Ortiz – Headquarters 1
- Trustee Kurt Stabel – Headquarters 2
- Trustee David Lowe – Pension 1
- Trustee Barry Hedberg – Pension 2
- Trustee Tim Larson – Pension 3
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Michael Overholser – Battalion 3 (Excused)
- Trustee Robert Steinbacher – Battalion 14 (Excused)
- Trustee Francisco Hernandez – Battalion 17 (Excused)
- David Ned Smith – Executive Director (Excused)
GUESTS:
- Tom Stires, Retired
- Bob Olsen, L.A. Retired Fire & Police
- Garth Flint, Beacon Pointe Advisors
- David Wagner, Grapevine Editor
INVOCATION & Flag Salute
Rick Godinez led the invocation. Chris Hart 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 July 7, 2011. 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 7, 2011.
BY-LAWS COMMITTEE REPORT
David Lowe stated that the By-law Committee reviewed the proposed changes made to the By-laws in reference to Trustee positions and presented the following motion.
The committee recommends and I so move to accept the proposed changes made to the By-laws in reference to the Trustee positions.
Motion carried to accept the proposed changes made to the By-laws in reference to the Trustee positions.
Attached is a copy of proposed By-law changes
PRESIDENT’S REPORT
1) Jacobsen referred to the passing of Firefighter Eric Shepherd and thanked everyone who assisted and attended his funeral services. He mentioned that his family was very appreciative and wanted to convey their thanks to LAFRA and everyone else that had a part in planning Shepherd’s services.
2) Jacobsen informed the Board that there will be a Special Board Meeting on August 17th to hear a member’s appeal. He indicated that the meeting is scheduled for 10:30am.
3) Jacobsen referred to beneficiaries and stated that when a member designates a minor as a beneficiary, if the amount is over $10,000 the balance of that amount must go into a Custodial Trust for the child. He indicated that they have created a new process to deal with those situations.
4) Jacobsen referred to the Golf Tournament and indicated that the planning has been going well. He mentioned that they have placed 15 second videos to promote the Golf Ball Drop sales and indicated that they have placed them on all the social media sites. He also asked of those Trustees interested in helping with the event to sign up on Juliet’s sheet of volunteers.
5) Jacobsen referred to the Trustee transfers and indicated that he sent a message to four Trustees about moving them to new assigned Battalions. He stated that David Peters will move to Battalion 17, Frank Hernandez will move to Battalion 10, Chris Hart will move to Battalion 11 and Chris Stine will move to Battalion 6.
Jacobsen entertained a motion to approve the above stated Battalion position transfers. David Lowe so moved. Barry Hedberg seconded. There was no discussion or objections.
Motion carried to approve the above stated Battalion position transfers.
6) Jacobsen asked the Trustees to help him recognize Pauline Szkolnik for her 10 years of service as a LAFRA employee. He presented her with a plaque of appreciation and thanked her for her efforts.
VICE PRESIDENT
Juan Albarran asked the Trustees to let him know if there were any conferences they were interested in attending other than the regularly scheduled conferences.
INVESTMENT COMMITTEE
Garth Flint of Beacon Pointe Advisors addressed the Board on the 2nd Quarter Review.
He discussed the portfolio composite returns for various time periods. He indicated that they should focus on longer periods of time because short periods of time cause us to move around in our ranking as well as our performance relative to the target index. He referred to the one-year performance and stated that we are in the 50th percentile. He reviewed the five, seven and ten year periods and stated that we outperformed the target index and ranked well. He stated that the primary culprit for the underperformance was Knightsbridge which are on the watch list. He mentioned that the Chief Architect of Knightsbridge was moving out of the company. He stated that the concern was that they have significantly underperformed the benchmark and pushed their 3-year period number down. He stated that Investment Committee will meet on the August 17th to review other managers that are candidates to replace them. He stated that Cohen & Steers is also on the watch list do to performance but indicated that they are performing better. He mentioned that Stralem’s numbers are beginning to improve because of the emphasis on large cap stock and are structuring their portfolio accordingly by buying large U.S. multi-national companies that have a good percentage of sales overseas. He stated that Seligman will be replaced by a new manager on the meeting of the 17th. He indicated that Artisan has very good numbers on the 5 and 7 year ranking and outperformed the benchmark. He mentioned that Europacific has consistently outperformed the benchmark in their five and seven year performance and has ranked in the 36th percentile.
He mentioned that they have replaced Brandes recently with IVA International and indicated that they are very eclectic and opportunists. He stated that Lazard is our emerging markets exposure and indicated that they have done well relative to the benchmark. PIMCO has very good long term numbers and outperformed the benchmark in the bond market in their five and seven year period. Gresham has outperformed their benchmark for the one-year period. The PIMCO Distressed Debt, has had a negative return in the last quarter but positive for the one year figure. PIMCO RCP reserved Capital Partners fund is a private equity fund and has just got funded so there are no results to report.
Jacobsen reminded that we will hold an Investment Committee meeting on August 17th.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer stated that they have redesigned the LAFRA standard forms and indicated that they are color coordinated. He mentioned that some of those forms will be available on the website in PDF format.
2) Todd Layfer mentioned that the Pension Department notified that the new pension earnings statements began showing the subsidy amounts in July.
3) Todd Layfer gave a Golf Tournament update and stated that they are targeting around 100 golfers and mentioned that so far they have 28 firefighters playing and a total of 85 players.
4) Todd Layfer mentioned that they have all the expenses in for Hope for Firefighters and will state the results in his quarterly review next month. He indicated that they are still waiting for one merchandise vendor’s donation.
ADMINISTRATIVE COMMITTEE REPORT
David Peters presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $777,030.71. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $777,030.71.
The committee recommends and I so move to pay the professional fees in the amount of $57,093.87. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $57,093.87.
The Committee recommends and I so move to approve sending additional family members and widows support to the Colorado Springs Memorial. There was no discussion or objections.
Motion carried to approve sending additional family member and widows’ support to the Colorado Springs Memorial.
The Committee recommends and I so move to donate up to $500 for the Drew Perez Blood Drive at FS 114. There was no discussion or objections.
Motion carried to donate up to $500 for the Drew Perez Blood Drive at FS 114.
The Committee recommends and I so move to approve airfare and related expenses for two Trustees to attend the Medco Best Practices conference. There was no discussion or objections.
Motion carried to approve airfare and related expenses for two Trustees to attend the Medco Best Practices conference.
The Committee recommends and I so move to purchase a foursome and a tee sign for the Craig Alder Charity Golf Tournament. There was no discussion or objections.
Motion carried to purchase a foursome and Tee sign for the Craig Alder Charity Golf Tournament.
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 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 $12,518.82
The Estate Planning benefit in the amount of $6,000,
The Life & Accident Death Benefits in the amount of $24,000
The Relief Death Benefits in the amount of $36,000.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
MEMORIALS
Donald R. Goodspeed
Lewis S. Bykerk
John W. Crenshaw
William L. Watson
Chester T. Hupp
Dale E. Calhoon
Jack D. Widner
Robert C. Ward
James Coburn read the names of members who recently passed and asked for a moment of silence from the Board.
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $2,916.56 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $2,916.56 to the Widows, Orphans & Disabled Firemen’s Fund.
The committee recommends and I so move to approve the assistance applications for surviving spouses, active and retired members. There was no discussion or objections.
Motion carried to approve the assistance applications for surviving spouses, active and retired members.
Donations to WODFF for July 2011
- GLENN W. JAYNES IN MEMORY OF HAROLD W. GREENWOOD
- BARBARA J BROWN IN MEMORY OF MY HUSBAND WILLIAM G.(BILL) BROWN WHO PASSED AWAY 07/01/2002
- RICHARD L. WATTERS IN MEMORY OF DALE E. CALHOON & JACK D. WIDNER
- HELEN L. SCHULZ
- HENRY O. HUIZINGA JR IN MEMORY OF CHESTER HUPP
- IRENE HIRSCH IN MEMORY OF FRANCES GUIDERA
- THOMAS E. DEMPSEY IN MEMORY OF PAT MCCULLOM
- BETTY V. LARSON IN MEMORY OF WAYNE WILLIAMSON
- JOHN C. WARE IN MEMORY OF ENGINEER DAVID C. MUDD
- WILLIAM J. TANNAHILL IN MEMORY OF OLIVIA B. HOSPE
- HERBERT R. FISCHER IN MEMORY OF LAURENCE B. WIRTZ
- EUGENE E. OLSON IN MEMORY OF WILLIAM (BILL) CRENSHAW
- JERRY L. CAIN IN MEMORY OF JOHN CRENSHAW
- ANONYMOUS DONATION IN HONOR OF FIREFIGHTER GARY MATSUBARA
- WILLIAM A CONN IN MEMORY OF FRANCES GUIDERA
- EVELYN PIPPEN IN MEMORY OF JOHN CRENSHAW
- MARY JEAN MURPHY IN MEMORY OF MY HUSBAND PAT TIERNEY
- JOHN M. WEISSHAUPT IN MEMORY OF DAVE MUDD
- ROBERT M. MARTINO IN MEMORY OF LAURENCE B. WIRTZ
- JACK D. GRUNDEEN IN GRATITUDE FOR THE DURABLE MEDICAL EQUIPMENT
- FIRE STATION NO. 39 FROM THE FIRE EXTINGUISHER FUND
- FRANCES Y. TATOM IN MEMORY OF JOHN W. CRENSHAW
- WESLEY E RAY IN MEMORY OF JOHN W. CRENSHAW
- GEORGE F. DEMOTT IN MEMORY OF JOHN CASS
- GEORGE F. DEMOTT IN MEMORY OF CHRIS IRONS
- MARCIA H. BREWER IN MEMORY OF JOHN CASS
- DELLA F CRENSHAW IN MEMORY OF MY HUSBAND & FATHER JOHN W. CRENSHAW
- HELEN MEGORDEN
- JAMES E. GILLUM FROM THE “BREAKFAST GANG”
- CORNELIA V DUSSEN IN MEMORY OF JOHN W. CRENSHAW
- ROBERT F KAMANSKY IN MEMORY OF LAURENCE B. WIRTZ
The committee recommends and I so move to approve the assistance applications for surviving spouses, active and retired members. There was no discussion or objections.
Motion carried to approve the 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 advancements for active and retired members and surviving spouses. There was no discussion or objections.
Motion carried to approve the advancements for active and retired members and surviving spouses.
GRAPEVINE/WEB COMMITTEE
Chris Hart reported that the web will have new forms for members use and will also consider placing a Medical button on the main screen that would provide easier access to the Medical portion of the website. He also mentioned that he will look into finding a few educational seminars or conventions that will help improve the website.
SECRETARY REPORT
Andy Kuljis stated that they must have nominations for next year’s President and Vice President.
David Lowe nominated John Jacobsen for President and Juan Albarran for Vice President. David Peters seconded the nominations. There was no discussion or objections.
Nominations were approved by the Board to elect John Jacobsen as President and Juan Albarran as Vice President for 2012.
SETTING OF DATES
1) Magic Mountain Firefighter Night – August 26th
2) Kings Fest – September 10th
3) IAFF Fallen Firefighter Memorial Colorado Springs Sept. 17th
4) LAFD Invitational Golf Tourn. – September 19th
5) SIIA – October 9th – October 12th
6) LAFRA Casino Night – October 22nd
7) IFEBP Annual Conf. – October 30th – November 2nd
8) LAFRA Open House – November 5th
RETIREMENT DINNERS
1) James Horimoto & Richard Hirigoyen, Stephen Johnson – August 5th Ports O’Call Restaurant (Larson)
2) Robert “LL” Wilcox – August 9th Knollwood Country Club (Steinbacher)
3) Ken Kraus – August 11th Grace E. Simons Lodge (Albarran)
4) Gary Mannan – August 12th Fire Station 101 (Hedberg)
5) Charles “Chuck” Hallman – August 17th Los Angeles Police Academy (Matsubara)
6) Dave Grijalva & Eric Johnson – August 19th Los Angeles Athletic Club (Coburn)
7) Jerry Brown – August 20th Proud Bird Restaurant
8) John A. Buck – September 12th Ports O’Call Restaurant (Kuljis, Larson)
9) Mike Pesich – September 22nd Ports O’Call Berth 76 (Kuljis)
10) Bruce Bickly – September 27th Odyssey Restaurant (Overholser)
11) Bob Turner – November 5th & 6th Hyatt Regency Valencia (White)
ADJOURNMENT
John Jacobsen entertained a motion to adjourn in memory of Eric Shepherd. Chris Hart so moved. Tim Larson seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 11:49am.
John Jacobsen, President