MINUTES OF THE BOARD OF TRUSTEES
February 1, 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 10:35 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn – Battalion 4
- Trustee Jeff Cawdrey
- Trustee Robert Steinbacher
- Trustee Gene Bednarchik
- Trustee Rick Godinez
- Trustee Doak Smith
- Trustee Chris Hart
- Trustee Craig White
- Trustee Michael Overholser
- Trustee Mark Akahoshi
- Trustee Steven Domanski
- Trustee Gary Matsubara
- Trustee David Peters
- Trustee Steve Tufts
- Trustee David Ortiz
- Trustee David Lowe
- Trustee Barry Hedberg
- Trustee Tim Larson
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Chris Stine (Excused)
- Trustee Francisco Hernandez (Excused)
- Trustee Kurt Stabel (Excused)
GUESTS:
- Lee Kebler, L.A. Retired Fire & Police
- Dennis Mendenhall, Retired
- Garth Flint, Beacon Pointe Advisors
INVOCATION & Flag Salute
Andy Kuljis 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 January 4, 2012. Robert Steinbacher so moved. Tim Larson 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 4, 2012.
In-Person Appeal
John Jacobsen informed the Trustees that a suspended member of the Relief was present to address the Board on her request for reinstatement.
The member appeared before the Board and stated her case. She informed the Board of her reasons for being unresponsive to the multiple letters sent by the Relief Association as well as her current situation. She was told that she would be informed of the Board’s decision after the meeting.
After further discussion, it was stated that it was the Relief Committee’s decision to deny her request to be reinstated as a member of the Relief.
Chris Hart motioned to approve her request to be reinstated as a member of the Relief Association. Michael Overholser seconded. On the question, there were objections. 10 voted opposed to the motion, 9 in favor. Motion failed.
INVESTMENT COMMITTEE REPORT
Robert Steinbacher stated that Garth Flint and Mike Breller of Beacon Pointe would address the Board with the 4th Quarter investments. He mentioned that by Friday, the committee will give Garth two names of new managers for consideration and indicated that they will make their decision after interviews scheduled on February 24th.
Garth Flint reported that 2011 was a tough year for investments. He reviewed the current market situation in terms of the unemployment rate, housing market and the possibility of inflation.
Mike Breller addressed the asset allocations and how the portfolio is diversified into the various asset classes. He stated that after review of performance from the sectors, he stated that Large Cap was up by 1%, Small Cap was down by 6% and International was down 12% for the year. He mentioned that St. James, Symons and The London Company were added at the end of the year as replacements for Knightsbridge and Seligman and should improve the performance. He reported that Stralem & Co. had performed fairly well and made up for some of the losses from the Knightsbridge portfolio relative to their index. He referred to the International component and stated that the Artisan Int’l Value was down 6% for the year instead of down 12% and held up substantially as well as Europacific Growth which was in line with the market and its peer groups. He also reported that IVA Int’l and Lazard Emerging Markets are in line with their peer groups and as well as the benchmark.
PRESIDENT’S REPORT
1) Jacobsen referred to the Pension Audit and stated that they have submitted the last documents to the auditor and are working on the rough draft. He mentioned that Dawna Gray and he will have a chance to review the final draft prior to it being submitted to the Pension Board.
2) Jacobsen mentioned that he attended the TriStar Open House event and mentioned that they are looking to resolve LAFRA’s workers comp issues. He also mentioned SB457 had passed legislation which states that if a worker gets treated for a work related injury, files a work comp claim and if the Work Comp Board declares it so, the City must pay dollar for dollar back to the healthcare plan all costs that were incurred. He stated that this applies to Self-Funded medical plans. He indicated that this will be a positive for the LAFRA Medical Plan.
3) Jacobsen mentioned that the Buzzard Bait ride event raised approximately $13K for the WODFF.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith had reported that Raytheon has again committed to $25K for this year’s Golf Tournament.
2) Todd Layfer presented the 2012 Budget for the Board’s approval. He reviewed projected and actual operating costs, benefits paid and contributions.
Robert Steinbacher motioned to adopt the 2012 Budget as presented by Todd Layfer. Chris Hart seconded. There was no discussion or objections.
Motion carried to adopt the 2012 Budget as presented.
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 $856,178.87. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $856,178.87.
The committee recommends and I so move to pay the professional fees in the amount of $20,425.71. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $20,425.71.
The committee recommends and I so move to sponsor up to $600 for a foursome of Golf for the Firefighters Quest Golf Tournament. There was no discussion or objections.
Motion carried to approve up to $600 for a foursome of golf for the Firefighters Quest Golf Tournament.
The committee recommends and I so move to donate up to $500 for the L.A. Heat Tournament. There was no discussion or objections.
Motion carried to donate up to $500 for the L.A. Heat Tournament.
The committee recommends and I so move to approve an additional $2K in seed money for the Hook & Ladder Enduro. There was no discussion or objections.
Motion carried to approve an additional $2K in seed money for the Hook & Ladder Enduro.
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 increase the minimum RX copays from $8 to $10 for generic and $20 to $25 for brand name when generic is available, decrease the maximum RX copay for meds from $500 to $300 and increase the medical premium rates at 4% for active and 7% for retired. There was no discussion or objections.
Motion carried to increase the RX copays from $8 to $10 for generic and $20 to $25 for brand name when generic is available, decrease the maximum RX copay for meds from $500 to $300 and increase the medical premium rates at 4% for actives and 7% for retired.
The committee recommends and I so move to approve contracting with Lexmond Communications to produce and distribute open enrollment materials.
Motion carried to approve contracting with Lexmond Communications to produce and distribute open enrollment materials.
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 $29,336.08
The Estate Planning benefit in the amount of $3,500,
The Life & Accident Death Benefit in the amount of $12,000
The Relief Death Benefits in the amount of $22,500
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
Vincent L. Chavez
Stanley B. Green
William R. Antisdel
Douglas A. Morton
Gerald R. Foust
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $18,063.82 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $18,063.82 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for January 2012
- BUZZARD BAITS 2012 EVENT
- GLEN & ANGELA CHARLES FAMILY FOUNDATION
- ROBERT MUNOA
- PAT JESSUP
- THOMAS J. JEFFERS III IN MEMORY OF GLENN SMITH
- MYRON H. DAVIS IN GRATITUDE FOR LAFRA ASSISTANCE
- JULIE APODACA
- BRIAN HISHINUMA
- ALBERT BOCTOR
- RHODA A. JEPSEN IN MEMORY OF WAYNE H. JEPSEN
- RICHARD T. SAKURAI
- CARL COPPA
- BARBARA J COY
- JEFF PARKER
- MARK STAFFORD
- FS 69 EXTINGUISHER FUNDS
- LAWRENCE FIORI
- ANTHONY BOOKER
- KAREN WALLER
- TERENCE DEPACKH
- JANINE BAILEY
- JEANETTE GARCIA
- ALAN BARRIOS
- JOSEPH D STEFANO
- ENRIGUE MERCADO
- JAMES F. PERSON IN MEMORY OF JACK MALONE & PAUL MITTENDORF
- RUTH TAYLOR IN HONOR OF KEN BUZZELL
- JIMMIE L RYLAND IN MEMORY OF TONY ENNIS
- CHARLES H. HARVEY IN MEMORY OF RAYMOND T. CAMPUZANO
- HENRY O. HUIZINGA JR IN MEMORY OF BARBARA GILLETT
- TROY BONAR IN MEMORY OF STEVE GENERAUX
- JON HOLTBY IN GRATITUDE TO FS-93
- BETTY V. LARSON IN REMEMBRANCE OF 9-11
- GARY HIGHT
- ROBERT DAVENPORT
- BRUCE GALIEN
- BRIAN HISHINUMA
- ROBERT DEAN
- FIRE STATION NO. 85 FROM THE FIRE EXTINGUISHER FUND
- RONALD TOMACRUZ
- GUARDIAN TECHNICAL SERVICES INC
- ERIC A BROWN
- ROY PRINCE
- ANTHONY HENSON
- MARK STAFFORD
- CLIFFORD RUNYEN
- JOHN FEDELE
- FS 17 EXTINGUISHER FUNDS
- ALBERT C. ABEL IN MEMORY OF EVERETT COURTER
- CHRISTINA M MCKILLIP IN MEMORY OF CAPTAIN TONY & ANTOINETTE DIDOMENICO
- FRANK & CONNIE BARIN IN MEMORY OF BERNARD SUBKOSKI
- WILLIAM WAKELAND
- JEFFREY LANDIS
- JANINE BAILEY
- ALBERT BOCTOR
- ROBERT VOWELS
- DOREEN M BURNHAM IN MEMORY OF JACK CREAGER
- SYLVIA S DELGADO
- BARNYARD SIGN & DECALS
- ARCHER R. MORGAN IN MEMORY OF MY DRILL TOWER CLASSMATE FELIX PIERE
- ARCHER R. MORGAN IN MEMORY OF MY X-AIDE STEVE KOENEKAMP
- ARCHER R. MORGAN IN MEMORY OF ONE OF FS60B FINEST MEMBERS DON GOODSPEED
- JOHN J. CONN IN MEMORY OF DOUGLAS P. MCDONALD
- JOHN M. MC KINNEY IN MEMORY OF LEON EGGERS
- HELEN MEGORDEN
- MALEN W. JACOBS IN MEMORY OF HOWARD MASON & THE “CHOSIN FEW SURVIVORS” OF THE KOREAN WAR
- PATRICIA MURDY IN MEMORY OF BARBARA GILLETT
- PAMELA J ABBOTT
- JILL M. MOODY IN RECOGNITION OF LIZ PEREZ ASSISTANCE
- GEORGE F OSBERG IN MEMORY OF JACK CREAGER
- NETWORK FOR GOOD
- JACK L. PETERSON IN MEMORY OF MY BUDDIES AT FS-61 DOUG HANSEN, MAURICE JOHNSON & CARL MARINO
- LAWRENCE FIORI
- JEFFREY LANDIS
- EMI KIDO IN MEMORY OF JACK CREAGER
- DAVID D. DUMLER
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/WEBSITE COMMITTEE REPORT
Chris Hart mentioned that they will have a meeting to discuss lowering costs to publish the Grapevine and possibly decreasing the amount of issues. He stated that they will also discuss advertisements on the website.
David Ned mentioned that they are currently dealing with three different potential vendors on taking the website to the next level. He stated that once they meet with all three vendors, they will make a recommendation to the Administrative Committee.
SCHOLARSHIP COMMITTEE REPORT
Doak Smith reported that all the updates are finalized on the website and Grapevine for the Scholarship Program. He indicated that he will provide a written report to the President on how the Scholarship application process is handled. He mentioned that the deadline to submit applications is April 13th.
AUDIT COMMITTEE REPORT
Doak Smith reported that the Audit committee met with the Harrington Group to discuss the annual audit. He indicated that they will conduct the audit beginning on February 13th and will have a closing meeting with management on March 2nd.
SECRETARY’S REPORT
Andy Kuljis reported that they need to review the inventory of cemetery plots and suggested that they appoint a committee to address the issue. He also indicated that they may need to purchase more plots in the near future.
SETTING OF DATES
1. Hook & Ladder Enduro – March 24th
2. Corbin Bowl – May 6th
3. Lane Kemper Softball Tournament – May 9th
4. Grass Valley – May 16th – 20th
5. Hope for Firefighters – June 7th
6. Over the Line Tournament – September 13th
7. LAFD Invitational Golf Tournament – September 24th
8. IFEBP Annual Employee Benefits Conf. – November 11th – 14th
9. LAFRA Open House – December 1st
RETIREMENT DINNERS
1. Chris Kawai – February 17th Brookside Golf Course (Matsubara/Akahoshi)
2. Raymund Peralta – February 27th The Odyssey (Godinez)
3. John Martinez – March 1st San Antonio Winery (Larson)
4. Neal Jones, Paul Steffen, Tom Kephart – March 4th Bridgeport Valencia (Domanski)
5. Louis Origel – March 9th Kyoto Grand Hotel (Coburn/Larson)
6. Kenneth Cassidy – March 11th Edendale (Albarran)
7. Fred Lopez – April 29th Sportsmen’s Lodge (Godinez)
ADJOURNMENT
John Jacobsen entertained a motion to adjourn in memory of John Squire. Doak Smith so moved. Craig White seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 12:40 pm.
John Jacobsen, President