MINUTES OF THE BOARD OF TRUSTEES
February 3, 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 10:37 a.m.
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee Jeff Cawdrey – Battalion 1
- Trustee Michael Overholser, Battalion 3
- Trustee James Coburn – Battalion 4
- Trustee Mark Akahoshi, Battalion 5
- Trustee Chris Hart – Battalion 6
- Trustee Rick Godinez – Battalion 7
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee Gary Matsubara – Battalion 11
- Trustee Chris Stine – Battalion 13
- Trustee Robert Steinbacher – Battalion 14
- Trustee Steven Domanski – Battalion 15
- Trustee Francisco Hernandez – Battalion 17
- 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
- David Ned Smith – Executive Director
- Controller – Todd Layfer
- Trustee Gene Bednarchik – Battalion 2 (Excused)
- Trustee Craig White – Battalion 12 (Excused)
- Garth Flint, Beacon Pointe Advisors
- Jim Dolan, Asst. Secretary
- Bob Olsen, L.A. Retired Fire & Police
- Lee Kebler, Retired
INVOCATION & Flag Salute
Tim Larson led the invocation and 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 January 6, 2011. Gary Matsubara so moved. Doak Smith 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 January 6, 2011.
1) John Jacobsen updated the Board on status of discussions with LAFPP staff on a new MOU including an agreement in terms for auditing the Association. . He mentioned that he has a meeting scheduled with Mike Perez later in the week.
2) Jacobsen stated that he met with James Soto from Tristar as well as with the new representative from Tristar. He indicated that the purpose of the meeting was to improve the relationship with between Tristar and LAFRA as well as improve payment of claims by the City on behalf of members. He stated that they will talk on a monthly basis to cover any issues that may arise.
3) Jacobsen referred to the ERRP filing and indicated that they are waiting to hear back on the status from the Federal Government. The filing has the potential of providing the PPO Medical Plan $1-2 million as a part of the National Healthcare Plan.
4) Jacobsen stated that they have picked a location for the Strategic Planning meeting and indicated that they will have the event in Santa Monica at the Fairmont Hotel. He mentioned that they have hired a new facilitator for the meeting and indicated that he will be sending a survey for Trustees to complete prior to the meeting to help focus the agenda on the most important matters.
Garth Flint of Beacon Pointe Advisors provided an Executive Summary of the investment portfolio allocation and performance.
Garth Flint stated that the economy appears to be stabilizing, however, there is still structural weakness with housing, unemployment and low wage growth. He reviewed the portfolio performance and indicated that they want to focus on long-term numbers like the 5 and 7 year performances. He did mention that the year ending 12/31/10, overall performance ranked in the 24th percentile of all balance funds by increasing 13.5 percent. He indicated that we have outperformed the benchmark well with the 5, 7 and 10 year periods. Overall performance was in the second percentile for the three and five year periods (the lower the percentile the better). He indicated that the Large Cap managers for the one year numbers underperformed their benchmarks for several different reasons. He stated that these managers tend to be defensive and are expected to under perform in an up market. He indicated that they want to be patient with those managers because they will go through periods of under performance and they do not want to terminate a manager at the wrong time. He did mention that they want to place Cohen & Steers on the watch list because they are not impressed with their current portfolio. He reported that International manager Artisan has had a great year and really outperformed the benchmark. He stated that they are in process of terminating the Columbia international fund because they’ve had poor performance for quite some time.
VICE PRESIDENT’S REPORT
1) Juan Albarran informed the Board that the Grass Valley event will be advertized in the Grapevine and website. He mentioned that the information has not yet been finalized. He indicated that the event will be held May 2nd through May 7th and said that the Relief Association will collect reservations and the money will be collected at the event except for the Golf fees which need to be prepaid ahead of time to Ted Bailey.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer presented the Budget for 2011 to the Board for approval. He reviewed the estimated income and expenses. He also reviewed the revenue sources and benefits forecast to be paid to members. Todd reviewed the budget assumption that with no Drill Towers that Relief revenue is declining about $100,000 per year due to retirements and deaths with no new firemen joining the Association. The 2011 Budget is balanced with revenue and expense in line with each other.
Robert Steinbacher stated the Administrative Committee had approved the proposed 2011 Budget
The committee recommends and I so move to approve the 2011 Budget presented by Todd Layfer. There was no discussion or objections.
Motion carried to approve the 2011 Budget presented by Todd Layfer.
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 $880,546.15. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $880,546.15.
The committee recommends and I so move to pay the professional fees in the amount of $60,384. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $60,384.
The committee recommends and I so move to purchase a new Toyota Sienna for the office staff and a new Toyota Avalon for the President. Jacobsen stated that they will sell one of the vehicles following the committee approved process. There was no discussion or objections.
Motion carried to purchase a new Toyota Sienna for the office staff and a new Toyota Avalon for the President.
The committee recommends and I so move to purchase LAFRA.com for $600. John Jacobsen reported that the person selling the domain originally wanted $30K. There was no discussion or objections.
Motion carried to purchase the LAFRA.com domain for $600.
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.
The committee recommends and I so move to expend $9.72 per medical plan member per month toward active and retired Long Term Care coverage beginning July 1, 2011. He stated that this will be a new medical plan benefit. There was no discussion or objections.
Motion carried to expend $9.72 per medical plan member per month for the Long Term Care coverage for active and retired beginning July 1, 2011.
David Peters reported that the Medco contract has been completed and signed. He also mentioned that Lexman Communications Consultants company has begun working on the open enrollment material.
David Peters informed that the committee is scheduled to meet on February 9th to discuss the medical plan renewals for July 1, 2011.
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 $32,959.57
The Estate Planning benefit in the amount of $8,550,
The Life & Accident Withdrawals in the amount of $5,410,
The Life & Accident Death benefit in the amount of $36,000
The Relief Death Benefits in the amount of $63,000.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Thomas J. Baron
Ray C. Kent
William H. Latham
Richard P. Stuart
Leonard E. Simpson
John G. Degenkolb
Frank O. Georgi Jr.
Donald L. Jenks
Walter C. Weis, Jr.
Norman T. Devereux
Jesse J. McGeary
John L. Gilchrist
James Coburn read the names of members who recently passed and asked for a moment of silence from the Board.
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $4,222.85 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $4,222.85 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for January 2011
- THE GLEN AND MARY ANN CHARLES FAMILY FOUNDATION
- JANICE E WAGNER IN MEMORY OF DON WAGNER
- JOHN KURY IN MEMORY OF RALPH C. ROOK
- BEVERLY PICKETT IN MEMORY OF MY HUSBAND HUGH L. PICKETT
- KAREN A. LARSON IN MEMORY OF OUR FATHER ROBERT C. HEDGES
- MARY K WILLEY IN MEMORY OF CHESTER WILLEY
- LARS NELSON IN MEMORY OF CHESTER WILLEY
- EVELYN MORRISSETTE IN MEMORY OF LEO CHRISTENSEN
- BETTY LARSON
- ARDIS L. WILLEY IN MEMORY OF MY HUSBAND AND FATHER CHESTER WILLEY
- LENELL DEVEREUX IN MEMORY OF MY HUSBAND AND FATHER NORMAN T. DEVEREUX
- ALVIN WEAVER IN MEMORY OF GORDON FRIES & MO ROGERS
- DANA LAINE IN MEMORY OF RAY LAINE
- DANA LAINE IN MEMORY OF RICHARD & JULIA PALACIOS
- JEANNE URQUIZA & FAMILY IN HONOR OF OUR HUSBAND & FATHER RALPH D. URQUIZA
- MINNIE ROBBINS IN MEMORY OF HELEN GORMAN
- CHARLES L KADLEY IN MEMORY OF CHESTER(BUD)WILLEY
- LEO & MARY JANE BUCKLEY IN MEMORY OF OUR UNCLE BUD/CHESTER WILLEY
- SUSAN M. HERBERT IN MEMORY OF MY UNCLE CHESTER (BUD) WILLEY
- MARLYS SHOMMER IN MEMORY OF CHESTER WILLEY
- CRESZENTIA F DEVEREUX IN MEMORY IF NORMAN T. DEVEREUX
- DOROTHY & CLARENCE DUMLER IN MEMORY OF CHESTER “BUD” WILLEY
- MARCIA MORROW IN HONOR OF MY COUSIN DAVE MAUER’S MARRIAGE TO MARTHA ON VALENTINES DAY 2011
- MARGARET E. HAIR IN MEMORY OF JOE HALL
- ANONYMOUS DONATION
- SMART CIRCLE INTERNATONAL LLC
- WILLIAM BAILEY
- GILBERT MAGA IN MEMORY OF RETIRED SAN FRANCISCO FIREFIGHTER ROGER MARTIN
- JAMES GILLUM
- TIM LARSON
- ARCHER MORGAN IN MEMORY OF ODIE KIRKMAN
- WILLIS MARTIN IN MEMORY OF HERM SCHULER
- WILLIS MARTIN IN MEMORY OF TOM BARON
- ARCHER MORGAN IN MEMORY OF JOE EVERETT
- ARCHER MORGAN IN MEMORY OF PHIL MCKIM
- VERNA IONATA IN MEMORY OF CHESTER WILLEY
- DONALD CATE IN MEMORY OF MY BELOVED WIFE LOIS
- PIETER VAN EKRIS IN MEMORY OF JOSEPH HALL
- HELEN MEGORDEN
- LOCK STOCK AND BARREL INVESTMENTS
- DANIEL W. ARNOLD
The committee recommends and I so move to approve the assistance applications for both surviving spouses and surviving children. There was no discussion or objections.
Motion carried to approve the assistance applications as stated.
The committee recommends and I so move to approve the advancements for active members and surviving spouses. There was no discussion or objections.
Motion carried to approve the advancements for active members and surviving spouses.
Chris Hart reported on the Grapevine magazine and stated that are looking for individuals to contribute to the Battalion news. He mentioned that the Store Committee met to discuss improvements on the Dalmatian store and how they plan to integrate with the website. He indicated that they continue to work with Trellon on minor improvements for the website.
Andy Kuljis provided the membership statistics report and indicated that they are working with the personnel department on how death notices are reported.
Doak Smith indicated that past research showed that the Relief attorney, Robert Ridley suggested that LAFRA set up a separate account for the sole purpose of the Scholarship Fund. He stated that Ridley also provided proposals on how set up the account. He indicated that this was never created. He mentioned that the current auditors, the Harrington Group has given preliminary suggestions on the set up of a scholarship fund account. Currently, scholarships are funded out of WODFF accounts. The purpose was stated that on occasion, the Relief Association may be offered funds specifically designated for the scholarship fund. He stated that when the Relief accepts funds for that purpose, they should be held in an account specifically designated for that purpose. He mentioned that he spoke with Todd Layfer which said that as long as you set aside the money for the scholarship program, it can go into the WODF Fund. He also added that the committee recommends that no additional named scholarships be added to the LAFRA Scholarship program just because of a donation. He indicated that LAFRA can recognize those individuals donating to the Scholarship Program in other ways.
SETTING OF DATES
1) Hook & Ladder Enduro – March 19th
2) Strategic Plan Session – March 29th & 30th
3) Investment Conf. IFEBP – April 11th – 13th Las Vegas
4) Corbin Bowl – May 1st
5) Grass Valley – May 2nd – May 7th
6) Lane Kemper Softball Tournament – May 4th
7) Hope for Firefighters – June 2nd
8) LAFD Invitational Golf Tourn – September 19th
9) SIIA – October 9th – October 12th
10) IFEBP Annual Conf. – October 30th – November 2nd
1) James Morrow II – February 5th, Los Robles Green Golf Course (Lowe)
2) Michael Nealy – February 5th, Automobile Driving Museum (Larson)
3) Ron Berry – February 19th, FS 80 (Coburn)
4) Robert E. Miller – February 27th The Odyssey Restaurant (Jacobsen)
5) Derek “Rick” Chew – March 4th Brookside Golf Course (Tufts)
6) Robert A. Raya – March 4th Taix Restaurant (Albarran)
7) Bob Vege – March 12th, FS 114 (Steinbacher)
8) Richard C. Barnett – March 13th Andy Zimbeck’s House
9) Steven Resnick – April 22nd Robinson Ranch Golf Course (Godinez)
10) Ray Gonzalez – The Odyssey
John Jacobsen entertained a motion to adjourn. Tim Larson so moved. Gary Matsubara seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 12:24 p.m.
John Jacobsen, President