MINUTES OF THE BOARD OF TRUSTEES
February 6, 2013
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 10:05 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee Jeff Cawdrey
- Trustee Gene Bednarchik
- Trustee Chris Hart
- Trustee Chris Stine
- Trustee Doak Smith
- Trustee Francisco Hernandez
- Trustee Robert Steinbacher
- Trustee Steven Domanski
- Trustee Steve Tufts
- Trustee Kurt Stabel
- Trustee David Ortiz
- Trustee Barry Hedberg – Pension
- Trustee Tim Larson – Pension
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Michael Overholser (Excused)
- Trustee Mark Akahoshi (Excused)
- Trustee David Peters (Excused)
- Trustee Craig White (Excused)
- Trustee Rick Godinez (Excused)
- Trustee David Lowe – Pension (Excused)
- Trustee James Coburn (Excused)
GUESTS:
- Dennis Mendenhall, Retired
- Lee Kebler, L.A. Retired Fire & Police
- Bob Olsen, L.A. Retired Fire & Police
- Mark Breller, Beacon Pointe Advisors
INVOCATION & Flag Salute
Tim Larson 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 9, 2013. Tim Larson so moved. David Peters 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 January 9, 2013.
PRESIDENT REPORT
1) Jacobsen informed the Board that Steve Ruda has offered to join the LAFRA Board as Trustee. He stated that he would like to appoint Steve Ruda as a new active Trustee which is in the current vacant position.
Kurt Stabel motioned to approve the appointment of Steve Ruda as a new active Trustee. Jeff Cawdrey seconded. There was no discussion or objections.
Motion carried to appoint Steve Ruda to the vacant active Trustee position.
Andy Kuljis proceeded to administer the Oath of Office to Steve Ruda.
2) Jacobsen referred to the new WODFF.org site and stated that this site is separate from the LAFRA.org member site and indicated that it has been built by the LAFRA marketing staff. He indicated that the WODFF.org site will be primarily for the public and outside donors. Marlene Casillas stated that this site is for our non-member supporters where they can learn about our charity and how they can get involved. She indicated that this site enables them to write stories and give acknowledgements to our donors and supporters. She stated that this has been a huge team effort with the marketing staff with support from leadership. She indicated that the WordPress platform has made it much easier to make changes and keep up with the technology. She also mentioned that they are in the process of posting on social media networks, such as YouTube and they are producing monthly newsletters for both members and the public.
3) Jacobsen informed the Board that the Strategic Planning Session will be held March 11th and 12th at the Universal Sheraton. He mentioned that a facilitator has been contracted and indicated that they will distribute the agenda for the meeting at the March Board meeting.
4) Jacobsen informed the Board that the Buzzard Bait event had netted a profit of $10K for the WODFF. He thanked Mike Reitmayer and Doug Weber for their efforts and hard work.
5) Jacobsen referred to the 2% opt-in/opt-out Pension issue and indicated that there have been a couple of legal actions brought by the L.A. Retired Fire & Police, PPL and ULFAC. He stated that it has been declared that because they signed a 2% letter of agreement, the City or the Pensions Dept. would be obligated to give a 7% health subsidy increase if the medical inflation rate was that high or greater. He stated that they sent the agreement for an early ruling with a judge to determine the specifics. Lee Kebler of the L.A. Retired Fire & Police indicated that they have a court date set and have obtained an attorney.
6) Jacobsen referred to the building search and indicated that they need to get together to determine which direction to go. He mentioned that some information was pending and indicated that once they receive it, it will help decide on whether to continuing leasing or move in the direction of a purchase.
VICE PRESIDENT REPORT
1) Juan Albarran mentioned the LAFRA Reunion at the Pechanga RV Resort and stated that the dates are May 29th through June 2nd. He indicated that the planning is coming along and stated that they already have 20 RV spots reserved for the event.
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 $949,756.48. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $949,756.48.
The committee recommends and I so move to pay the professional fees in the amount of $112,814.03. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $112,814.03.
The committee recommends and I so move to enter into three year contract with Alternate Solutions at their current rate. There was no discussion or objections.
Motion carried to enter into three year contract with Alternate Solutions.
The committee recommends and I so move to approve the contract with Wil Hentzen at $250K for the remaining work on the FRITS platform conversion. There was no discussion or objections.
Motion carried to approve the contract with Wil Hentzen at $250K for the remaining work on the FRITS platform conversion.
The committee recommends and I so move to sponsor the Firefighters Quest Golf Tournament and purchase a foursome and tee sign. There was no discussion or objections.
Motion carried to sponsor the Firefighters Quest Golf Tournament and purchase a foursome of golf and tee sign.
The committee recommends and I so move to approve the proposed budget for 2013 presented by Todd Layfer. There was no discussion or objections.
Motion carried to approve the proposed budget for 2012 presented by Todd Layfer.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer presented the 2013 proposed budget for the Board’s approval. He referred to retirements and the fact that the Fire Department had no drill towers in five years. He mentioned how the wage increase affects the sick and injury benefits. He stated that the budget reflects multi-year trends and compares them with one-time occurrences for both expenses and revenue. He reported that the Relief dues were down about $8K for the year because of the loss of members and those retiring from active duty. He reported on the Grapevine budget along with the Sick & Injury and Relief benefits. He stated that the medical budget will reflect the premium increase approved by the Medical Committee of 3.79% for actives and 5% for retirees. He stated that included in the budget were a full year of premiums for the increased coverage of the D & O and liability. He mentioned that the salaries were budgeted at a 4% increase pool and also included is a full year of employee benefits and salary for the new employee hired in October of 2012. He reported that the overall revenue and operations budget was 3% higher than last year. The budget is balanced.
2) David Smith mentioned that a LAFRA employee has scheduled her retirement date for March 8th. He stated that they will not replace her position and indicated that they will reallocate her duties among the current staff.
3) David Smith informed that the Summary of Benefits mailing will be going out to the members next week.
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 a premium increase of 3.79% for actives and 5% for retirees. There was no discussion or objections.
Motion carried to approve a premium increase of 3.79% for actives and 5% for retirees.
The committee has decided to use the ERRP funds to apply to PPO office visit co-pays until the funds are exhausted. Barry Hedberg stated that LAFRA will reimburse member co-pays once the final dollar amount of the ERRP funds has been depleted.
INVESTMENT REPORT
Mark Breller of Beacon Pointe Advisors presented the 4th quarter investment performance for 2012. He reported that the total composite return for the quarter was 1.7% which outpaced the policy and allocation index. He stated that the 12-month period for 2012 was up 12%. Kurt Stabel asked if Beacon Pointe was planning on speaking with St. James and Symons about their lower performance. Mark Breller indicated that it was their intention on speaking with the two managers.
RELIEF COMMITTEE REPORT
Tim Larson presented the following motion.
The committee recommends and I so move to pay:
The Sick & Injury benefits in the amount of $32,451.54
The Estate Planning benefit in the amount of $5,325,
The Life & Accident withdrawals in the amount of $3,398
The Relief Death benefits in the amount of $22,500.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Tim Larson read the names of members who recently passed and asked for a moment of silence from the Board.
MEMORIALS
Gilbert L. Maga
Willard C. Knecht, Jr.
William W. Kirkendall
William D. Sims
Howard L. Kelley
ASSISTANCE COMMITTEE
Tim Larson presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $21,771.82 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $21,771.82 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
Tim Larson 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/WESBITE REPORT
Jacobsen mentioned that they are in the final phases of the wire frames for LAFRA.org site.
SECRETARY’S REPORT
Andy indicated that have been busy and have been working with the new program for sending death notices. He stated that so far, it is working well. Andy also asked that Trustees respond to his emails when he needs assistance in flying memorial flags for members.
AUDIT COMMITTEE REPORT
Kurt Stabel mentioned that the Audit Committee met with the auditors to start this year’s audit review. He stated that they will report back to the Board when the audit is completed.
SETTING OF DATES
1) Estate Planning Seminar February 27th
2) Strategic Planning Session – March 11th & 12th
3) Hook & Ladder Enduro – March 23rd
4) LAFD Foundation Open House – April 13th
5) Corbin Bowl – April 28th
RETIREMENT DINNERS
1) Henry J. Amparan – February 16th Fire Station 49 (Hedberg/Larson)
2) John L. Pecel – February 20th Sportsmen’s Lodge (Jacobsen)
3) Mike Brehm – February 23rd Ports O’Call Restaurant (Bednarchik)
4) Dave Wagner – February 24th LAFD Museum Old 27’s (Godinez)
5) Robert Barocas – February 27th Odyssey Restaurant (Steinbacher)
6) Roger Duke – March 5th The Odyssey Restaurant (White)
7) Rich Hernandez – March 8th LAFD Museum Old 27’s (Hedberg)
8) Thomas Reyes – March 9th Porter Valley Country Club (Peters)
9) Alan Schatz – March 14th Saddle Ranch Chop House (Albarran)
10) Phil Weireter – March 15th Odyssey Restaurant (Ruben Navarro)
11) Robert Hernandez – March 24th Knollwood Country Club (Tufts)
12) Tony Campos – March 22nd The Odyssey Restaurant (Akahoshi)
13) Richard Rivas – March 27th Steven’s Steak House (Albarran)
14) Dean Stivason – April 13th San Pedro Elks Lodge #996 (Kuljis)
15) Roger Camunas – April 26th Quiet Cannon (Bednarchik)
16) Kenny Myers & Ernie Navarro – May 11th Newport Beach Vineyards (Bednarchik)
17) Richard Martinez – May 31st The Castaway Restaurant (Larson)
NEW BUSINESS
Jacobsen entertained a motion to approve up to $350 to purchase a table at the Firefighter of the Year Luncheon. David Ortiz so moved. Jeff Cawdrey seconded. There was no discussion or objections.
Motion carried to purchase a table for the Firefighter of the Year Luncheon.
ADJOURNMENT
John Jacobsen entertained a motion to adjourn. David Peters so moved. Frank Hernandez seconded. There was no discussion and no objections.
Motion carried to adjourn. The Board of Trustees meeting adjourned at 11:59 am.
John Jacobsen, President