MINUTES OF THE BOARD OF TRUSTEES
December 3, 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 10:31a.m.
ROLL CALL
MEMBERS PRESENT:
Juan Albarran, President
Robert Steinbacher, Vice President
Andrew Kuljis, Secretary
Trustee James Coburn
Trustee Jeff Cawdrey
Trustee David Peters
Trustee Chris Hart
Trustee Gene Bednarchik
Trustee Steve Berkery
Trustee David Ortiz
Trustee Rick Godinez
Trustee Mark Akahoshi
Trustee Tyler Tomich
Trustee Steve Tufts
Trustee Doak Smith
Trustee Craig White
Trustee Steven Domanski
Trustee Barry Hedberg – Pension
Trustee David Lowe – Pension
Trustee Tim Larson – Pension
Todd Layfer – Executive Director
Liberty Unciano – Controller-Treasurer
MEMBERS ABSENT:
Trustee Chris Stine (Excused)
Trustee Francisco Hernandez (Excused)
Trustee Steve Ruda (Excused)
GUESTS:
Dave Wagner, Grapevine Editor
INVOCATION & Flag Salute
Rick Godinez led the invocation. David Lowe led the flag salute.
RATIFICATION OF MINUTES
Juan Albarran entertained a motion to ratify and dispense with the reading of the minutes and Board actions of the Board of Trustees meeting held November 5, 2014. David Peters so moved. Tim Larson seconded. There was no further discussion or objections.
Motion carried to ratify and dispense with the reading of the minutes and Board actions of the Board of Trustees held November 5, 2014.
PRESIDENT REPORT
1) Juan Albarran provided an update on the Javier Martinez fundraiser. He reported around $20K was raised and via the Fire Family Foundation it will be designated for Javier’s use. He also provided an update on Wendy Cummings.
2) Juan Albarran referred to the 7470 building and reported that LAFRA and the last remaining tenant reached a successful agreement to vacate the office space. He indicated that the tenant will be out by January 4, 2015.
3) Juan Albarran introduced new Trustee Frank Aguirre. He also indicated that there will be a vacant Trustee spot with Steve Tufts leaving the LAFRA Board.
VICE PRESIDENT REPORT
1) Bob Steinbacher thanked all the Trustees for their hard work this past year. He provided the 2015 conference schedule list for Trustees to review. He stressed the importance of Trustees attending investment conferences for them to understand the investment choices of the LAFRA portfolio.
BUILDING COMMITTEE REPORT
Steve Domanski reported that they would be receiving another dry-wall bid. He indicated that a few items came in under budget.
EXECUTIVE DIRECTOR’S REPORT
1) Liberty Unciano presented the 3rd quarter financials compared to the budget. She reported that the main revenue sources were running in line with the budget. She reported on the benefits paid to members and indicated that overall they are tracking slightly under budget but noted that Rx claims are pacing higher than projected. She reviewed contributions made and indicated that we are pacing slightly ahead of our budget. Todd referred to the 7470 building income and expenses and reported that for the first nine months of 2014, we are at $43K to the positive. Overall, total revenue and expenses are on target with projections.
2) Todd Layfer reported the final numbers of the open enrollment and stated that they have added 12 members and 38 dependents to the medical plan.
3) Todd Layfer indicated that LAFRA will be visiting the Drill Tower class on December 16th to make our presentation. He reported that there are no more than 60 candidates in this class.
ADMINISTRATIVE COMMITTEE REPORT
Todd Layfer presented the 7470 Building Construction and Data/Networking budgets for the Board’s review and approval.
Jeff Cawdrey presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $1,121,184.15. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $1,121,184.15.
The committee recommends and I so move to pay the professional fees in the amount of $177,255.20. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $177,255.20.
The committee recommends and I so move to approve $1,000 donation for the Grossman Burn Center Annual Reunion. There was no discussion or objections.
Motion carried to approve $1,000 donation for the Grossman Burn Center Annual Reunion.
The committee recommends and I so move to approve $200 for Chad Richardson for the purchase of instruments and uniform for the CSFA Pipes & Drums.
Motion carried to approve $200 for Chad Richardson for the purchase of instruments and uniform for the CSFA Pipes & Drums.
The committee recommends and I so move to approve $8,000 in start-up money for the Hook & Ladder Enduro event. There was no discussion or objections.
Motion carried to approve $8,000 in start-up money for the Hook & Ladder Enduro event.
The committee recommends and I so move to approve the construction budget for 7470 building as presented. There was no discussion or objections.
Motion carried to approve the construction budget as presented.
The committee recommends and I so move to approve the data/networking budget for 7470 building as presented. There was no discussion or objections.
Motion carried to approve the data/networking budget as presented.
INVESTMENT COMMITTEE REPORT
Steve Domanski reported that the committee interviewed and proposes to hire three new money managers.
The committee recommends and I so move to sell 100% of PIMCO Total Return investment and place 50% in Metropolitan West Total Return Bond fund and 50% in the Dodge & Cox Income fund. There was no discussion or objections.
Motion carried to move to sell 100% of PIMCO Total Return investment and place 50% in Metropolitan West Total Return Bond fund and 50% in the Dodge & Cox Income fund.
The committee recommends and I so move to sell 100% of the holdings in the PIMCO Unconstrained fund and reallocate those proceeds to the Black Rock Strategic Income Opportunity fund. There was no discussion or objections.
Motion carried to sell 100% of the holdings in the PIMCO Unconstrained fund and reallocate those proceeds to the Black Rock Strategic Income Opportunity fund.
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.
David Peters reported that the EGWP materials will be sent out to the Medicare eligible members. He informed Trustees to tell members to call into LAFRA with any questions they may have regarding the EGWP notice. Todd Layfer informed that the pre-note mailing has been sent out in November. He stated that the next mailing will be the Welcome Kit on December 15th which will give more information to the EGWP population.
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 $82,244.16,
The Estate Planning benefit in the amount of $7,162,
The Life & Accident Withdrawals in the amount of $2,229
The Relief Death Benefits in the amount of $27,000.
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
Kenneth J. Clore, Jr.
Richard A. Arlt
Antoni Kwapinski
Frederick K. Yager
Gilbert E. Nash
Samuel E. Mundt
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $8,545.09 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $8,545.09 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.
The committee recommends and I so move to approve the Christmas bonuses for the Widows & Orphans. There was no discussion or objections.
Motion carried to approve the Christmas bonuses for the Widows & Orphans.
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 indicated that there have been some questions about pictures in the Grapevine and not being big enough or cropped. He also indicated that they have been receiving some participation with articles being submitted for the Battalion News.
SECRETARY’S REPORT
Andy Kuljis reported that the By-laws voted upon at this year’s election have been ratified. He also reported that he has ordered 100 more flag boxes and flags.
NEW BUSINESS
Steve Domanski referred to a previous discussion to clarify the definition of a member in good standing. There was a question if LAFRA should consider the Fire Department’s suspension or reprimands for LAFRA members. Juan Albarran confirmed that the Board’s definition of a member in good standing is by LAFRA standards only.
SETTING OF DATES
1) LAFRA Open House – December 6th
2) L.A. Retired Fire & Police Christmas Celebration – December 7th
RETIREMENT DINNERS
1) Ray Mayo – January 22nd Ports O’ Call
2) Jim Jure – January 28th San Antonio Winery
3) Mike Ketaily – February 7th Duke’s Malibu, Ocean Room
4) Gregory E. Newland – April 11th Dalmatian American Club San Pedro
5) Paul Hilleary – March 7th Banning Landing
ADJOURNMENT
Juan Albarran entertained a motion to adjourn. David Peters so moved. Tim Larson seconded. There was no discussion and no objections.
Motion carried to adjourn. The Board of Trustees meeting adjourned at 12:23 p.m.
Juan Albarran, President