MINUTES OF THE BOARD OF TRUSTEES
August 6, 2014
CALL TO ORDER
President Juan Albarran called the meeting of the Board of Trustees of the Los Angeles Firemen’s Relief Association to order at 10:22a.m.
ROLL CALL
MEMBERS PRESENT:
Juan Albarran, President
Robert Steinbacher, Vice President
Andrew Kuljis, Secretary
Trustee James Coburn
Trustee Jeff Cawdrey
Trustee Tyler Tomich
Trustee Chris Hart
Trustee Francisco Hernandez
Trustee Steve Ruda
Trustee Chris Stine
Trustee Steve Tufts
Trustee David Ortiz
Trustee Doak Smith
Trustee Mark Akahoshi
Trustee Barry Hedberg – Pension
Trustee Tim Larson – Pension
Todd Layfer – Executive Director
MEMBERS ABSENT:
Trustee David Lowe – Pension (Excused)
Trustee Gene Bednarchik (Excused)
Trustee Craig White (Excused)
Trustee David Peters (Excused)
Trustee Steven Domanski (Excused)
Trustee Steve Berkery (Excused)
Trustee Rick Godinez (Excused)
GUESTS:
Dennis Mendenhall, Retired
David Wagner, Grapevine Editor
Bob Olsen, L.A. Retired Fire & Police Assoc.
Bill Quinn, L.A. Retired Fire & Police Assoc.
Tom Stires, Retired
INVOCATION & Flag Salute
Steve Ruda led the invocation. Doak Smith led the flag salute.
RATIFICATION OF MINUTES
Juan Albarran entertained a motion to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held July 9, 2014. Tim Larson so moved. Mark Akahoshi 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 July 9, 2014.
PRESIDENT REPORT
1) Juan Albarran presented a Member Service Award plaque to Wayne Sherman for his 25 years of service to LAFRA.
2) Juan Albarran reported on the status of the 7470 Figueroa building and indicated that the plans were close to being finalized. He also indicated that they have been reviewing the I.T. needs for the office. He reported that they are ending their property management agreement with Morlin Management as of August 31st and we will manage the building ourselves.
3) Juan Albarran indicated that we have been talking with Ray Cirranna from the Pensions Department regarding the MOU agreement. He stated that Dawna Gray with Bradawn is reviewing the agreement as well as attorney Bob Macaulay to determine how it impacts LAFRA.
4) Juan Albarran asked the Trustees if any of them would be interested in running for President or Vice President for 2015. He stated that they will now accept nominations.
Bob Steinbacher motioned to nominate Juan Albarran for President for 2015. Barry Hedberg seconded. There was no discussion or objections.
Motion carried to nominate Juan Albarran for President for 2015.
Barry Hedberg motioned to nominate Bob Steinbacher as Vice President for 2015. Frank Hernandez seconded. There was no discussion or objections.
Motion carried to nominate Bob Steinbacher for Vice President for 2015.
VICE PRESIDENT REPORT
1) Bob Steinbacher asked if any Trustees would be able attend the Sacramento Memorial. He stated that Matthew McKnight will be placed on the memorial wall. He indicated that they would provide support to his family on October 11th.
2) Bob Steinbacher encouraged the Trustees to book their flights for the Annual IFEBP Conference in Boston. He stated that all Trustees are booked at the Marriott.
INVESTMENT COMMITTEE REPORT
Juan Albarran introduced Mike Breller of Beacon Pointe to present the 2nd Quarter Investments Performance Review.
Mike Breller reported that the investment portfolio had a stellar 2nd quarter with 4% to 5% returns across the board. He mentioned that the REITs did very well but Fixed Income securities have flattened out some. He stated that Emerging Markets have been showing stronger returns with 15% for the 6 month period. He reviewed the overall market performance and how it affected the industry as well as the portfolio.
Todd Layfer indicated that the following actions for approval will be subject to completion of due diligence which will be an on-site visit to the new investment managers.
Juan Albarran presented the following motions.
The committee recommends and I so move to authorize the transfer of funds from Stralem & Co. to Fiduciary subject to completion of due diligence. There was no discussion or objections.
Motion carried to authorize the transfer of funds from Stralem & Co. to Fiduciary Management Inc. subject to completion of due diligence.
The committee recommends and I so move to transfer funds from the London Company and split into two separate funds, Neumeier Poma 50% and Silvercrest SCV50%. This will also be subject to an onsite visit of both managers. There was no discussion or objections.
Motion carried to transfer funds from the London Company and split into two separate funds to Neumeier Poma and Silvercrest SCV.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer informed that the Get Together foundation held a concert on July 3rd at the Canyon Club and donated the proceeds to the WODFF in the amount of $8,055.
2) Todd Layfer reported on the status of the Golf Tournament and indicated that so far they have $93K in sponsorship funds. He stated that they have 29 new sponsors for the event. He reported that they currently have 120 golfers.
3) Todd Layfer informed the Board that they will have a property tax audit from the L.A. County Tax Assessor on Monday, August 11th. He indicated that they usually audit LAFRA every four to five years.
4) Todd Layfer informed that they have received the latest capital call from RCP for $100K due on August 12th. He indicated that they have a $2 million commitment with RCP and stated that with this latest call, they will be at 58% funded.
ADMINISTRATIVE COMMITTEE REPORT
Jeff Cawdrey presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $958,727.13. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $958,727.13.
The committee recommends and I so move to pay the professional fees in the amount of $100,257.20. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $100,257.20.
The committee recommends and I so move to approve up to $12K annually for chaplain expenses. There was no discussion or objections.
Motion carried to approve up to $12K annually for chaplain expenses.
The committee recommends and I so move to approve $720 to purchase a foursome for the Craig Alder Charity Golf Tournament. There was no discussion or objections.
Motion carried to approve $720 to purchase a foursome of golf for the Craig Alder Charity Golf Tournament.
The committee recommends and I so move to approve $220 for airfare for the Wounded Warrior being honored at USC. There was no discussion or objections.
Motion carried to approve $220 for airfare for the Wounded Warrior being honored at USC.
The committee recommends and I so move to approve $5K in start-up money for the Mayo Classic event on October 22nd. There was no discussion or objections.
Motion carried to approve $5K in start-up money for the Mayo Classic event on October 22nd.
The committee recommends and I so move to approve up to $500 for a memorial plaque for Matthew McKnight. There was no discussion or objections.
Motion carried to approve up to $500 for a memorial plaque for Matthew McKnight.
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.
The committee recommends and I so move to approve the pharmacy benefit manager (PBM) contract with Express Scripts for a 3-year period starting January 1, 2015. There was no discussion or objections.
Motion carried to approve PBM contract with Express Scripts for a 3-year period.
The committee recommends and I so move to approve the agreement with Medical Imaging Center of Southern California to provide body scans for LAFRA Medical Plan members. There was no discussion or objections.
Motion carried to approve the agreement with Medical Imaging Center of Southern California.
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 $18,922.97,
The Estate Planning benefit in the amount of $10,180,
The Life & Accident Withdrawals in the amount of $2,544
The Relief Death Benefits in the amount of $31,500.
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
Timothy A. Walgren
Ervin R. Woody
Mario J. Lara
Charles L. Mc Cown
John S. Christopher
Arthur R. Parker
Carleton J. Phillip
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $355,990.35 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $355,990.35 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.
GRAPEVINE/WEB REPORT
Chris Hart referred to the website and mentioned that they will have a section called Kitchen Table Wisdom that will include suggestions and input on different situations. He also indicated that they will try to create some type of memorial for members on their social media sites.
SECRETARY’S REPORT
Andy Kuljis reported that they have received a lot of donations lately. He also asked the Trustees to remind the members of the $600 Estate Planning Benefit available to them.
OLD BUSINESS
Chris Hart asked if they should consider increasing the Estate Planning Benefit. Bob Steinbacher indicated that there were several members who were unaware that the Relief provided that benefit. Juan Albarran indicated that they would need to discuss the issue further in committee.
SETTING OF DATES
1) Over the Line Tournament – September 3rd
2) L.A. Kings Hockey Fest – September 14th
3) Colorado Springs Memorial – September 18th – 21st
4) LAFD Invitational Golf Tournament – September 22nd
5) SIIA Conference Arizona – October 5 – 7
6) IFEBP Annual Conference (Boston) – October 12th – 15th
7) Mayo Classic – October 22nd
8) LAFRA Open House – December 6th
RETIREMENT DINNERS
1) Robert Ruffino – August 28th LAFD Historical Museum
2) Richard Watson – August 30th Spring Lake Club House
3) Bassiano Peters Jr. – August 30th Marriott Hotel Marina del Rey
4) Gary Zieger – August 31st Fire Station 109
5) Ed Tapia – September 6th Castle Catering Pasadena
6) Matthew Powell – September 13th Dalmatian Amer. Club
7) Jim Eberle & Dave Rowley – September 26th 94th Aero Squadron
8) Jorge Ostrovsky – October 4th Jorge’s House
9) Raul Miranda – October 18th The Odyssey Restaurant
ADJOURNMENT
Juan Albarran entertained a motion to adjourn in honor of Tom Burroughs. Doak Smith moved. Tim Larson seconded. There was no discussion and no objections.
Motion carried to adjourn in honor of Tom Burroughs. The Board of Trustees meeting adjourned at 12:16 a.m.
Juan Albarran, President