MINUTES OF THE BOARD OF TRUSTEES
December 5, 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 9:42 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee Jeff Cawdrey
- Trustee Gene Bednarchik
- Trustee James Coburn
- Trustee Gary Matsubara
- Trustee Rick Godinez
- Trustee Doak Smith
- Trustee Francisco Hernandez
- Trustee Michael Overholser
- Trustee Mark Akahoshi
- Trustee Craig White
- Trustee Robert Steinbacher
- Trustee Steven Domanski
- Trustee David Peters
- Trustee Steve Tufts
- Trustee David Ortiz
- Trustee David Lowe – Pension
- Trustee Barry Hedberg – Pension
- Trustee Tim Larson – Pension
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Chris Hart (Excused)
- Trustee Chris Stine (Excused)
- Trustee Kurt Stabel (Excused)
GUESTS:
- Jim Dolan, Asst. Secretary
INVOCATION & Flag Salute
Rick Godinez 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 November 8, 2012. David Lowe so moved. Robert Steinbacher 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 November 8, 2012.
PRESIDENT REPORT
1) Jacobsen mentioned that the Investment Committee will conduct a meeting at Beacon Pointe on February 11th. He indicated that he will give let the committee know the time and agenda within the next couple of weeks. Any Trustee is welcome to attend.
2) Liz Denison addressed the Board on the latest developments with the FRITS system. She mentioned that they began working on issues that they had at the beginning of the year with the City’s conversion of their payroll system as well as issues with Death Notices. She indicated that they had also created a tracking screen to record policy changes which will include who made those changes and the date they were made. She also stated that the policy tracking will give us the ability to look back on why changes were made. Jacobsen stated that anything given for Liz Denison to work on should first go through Bob Dillon because he will know what she is working on and what are the priorities.
Liz Denison mentioned that she has been working with Wil Hensen who works with Fox Pro and performs conversions. She stated that he documented every screen in the FRITS system and came up with a 516 page document that is very detailed. She stated that she reviewed all his questions and provided him with the program. Jacobsen mentioned that they are at the point that they have the write up of the FRITS system and have the ability to rebuild it if necessary. He indicated that they will continue to update FRITS and will need additional funds to do so which will be discussed in the Administrative Committee report.
3) Jacobsen referred to member monthly Relief Association dues and stated that they need to bring the dues structure to match the cost of living increases active firemen received effective July 1, 2012 and January 1, 2013. He stated that the active dues will be increased by $2 and retirees should see a $.21 increase. He indicated that he will place the notice in the next month’s Grapevine President’s message.
4) Jacobsen thanked everyone who came to the Open House event. He indicated that they estimate an attendance of around 275 people which was an increase from the year before.
5) Jacobsen referred to the Strategic Planning session and mentioned that we will schedule the meeting for March 2013.
6) Jacobsen mentioned that the medical plan review meeting will be scheduled for January 22nd at 2p.m. He stated that he will send a reminder email to the committee. He stated that they will review the rate categories including for those with Medicare. Also potential changes to medical plan benefits will be discussed. Both of these items will be effective July 1, 2013.
7) Jacobsen mentioned that they held a meeting with Bill Peterson, Bob Sherwin, Bob Macaulay and Dawna about the new workers comp law becoming effective in January 2013. He stated that they discussed potential ways be able to continue to obtain reimbursement of monies paid for workers comp claims. He stated that in January, the process for a medical review will be changed to be one review that will be final and binding. He stated that they are working to put together a plan recommended by the experts that will benefit the members and the medical plan.
INVESTMENT REPORT
Robert Steinbacher presented the following motion.
The committee recommends and I so move to enter into agreement to invest with Southwest Value Partners for $2 million. He mentioned that they will be LAFRA’s private REIT manager. There was no discussion or objections.
Motion carried to enter into agreement to invest with Southwest Value Partners for $2 million.
The committee recommends and I so move to move additional $1 million each from the Money Market investment to investment managers, FPA, IVA and Titan. Jacobsen stated that this will bring the Alternative investments close to the target allocations. There was no discussion or objections.
Motion carried to move additional $1 million to each investment manager as stated.
Robert Steinbacher informed that they will have an Investment Committee meeting at Beacon Point on February 11th.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer presented the expenditures compared to the budget through September 2012. He stated that they anticipate more dividend income than budgeted due to companies declaring special dividends because of new tax laws. He reported that the benefits paid to members are running below what was anticipated. He indicated that contributions were on target for the first nine months and reported that the operating expenses were just below what had been budgeted. He reported that the Grapevine loss was running lower than expected and stated that the professional fees paid were on target. Overall expenditures and income are running very close to the budget. He stated that the investment balances as of October are showing that they are 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 $888,882.01. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $888,882.01.
The committee recommends and I so move to pay the professional fees in the amount of $117,793.74. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $117,793.74.
The committee recommends and I so move to approve $28K for the consultant to perform the first phase of 10% of the Frits platform conversion. David Smith stated that they have informed the consultant that they will go out to bid with an RFP for the work and to get input from other individuals to determine what they will charge to complete the entire conversion.
Motion carried to approve $28K for the consultant to perform the first phase of the Frits platform conversion.
The committee recommends and I so moved to approve up to $500 for the Grossman Burn Foundation Holiday Reunion. There was no discussion or objections.
Motion carried to approve up to $500 for the Grossman Burn Foundation Holiday Reunion.
MEDICAL COMMITTEE REPORT
David Peters 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 $26,326.33
The Estate Planning benefit in the amount of $11,525,
The Relief Death Benefits in the amount of $13,500.
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
Leon R. Rauh
Richard H. Downey
Rodney G. Cobb
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $10,856.16 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $10,856.16 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.
NEW BUSINESS
Juan Albarran referred to the Grass Valley reunion and mentioned that he received a quote from the Nevada Fairgrounds to rent a portion of the campground instead of the past practice of renting the whole campground. He stated that the quote he got was around $7K instead of the $9,200 from the year before. He indicated that they discussed considering moving the reunion further south to such places like Temecula, Paso Robles and other places where members could bring their motorhomes as well as be more convenient for active’s to participate. He stated that they would entertain other ideas and places.
SETTING OF DATES
1) L.A. Retired Fire & Police Holiday Party – December 9th
2) Buzzard Bait Family Fun Ride – January 18 – 21
3) Hook & Ladder Enduro – March 23rd
RETIREMENT DINNERS
1) Michael Camello – January 25th Brookside Golf Club (Kuljis)
2) John Pecel – February 20th Sportsmen’s Lodge (Jacobsen)
3) Mike Brehm – February 23rd Ports O’Call Restaurant (Bednarchik)
4) Roger Duke – March 5th The Odyssey Restaurant (White)
ADJOURNMENT
John Jacobsen entertained a motion to adjourn. Gary Matsubara so moved. Tim Larson seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 10:51 am.
John Jacobsen, President