MINUTES OF THE BOARD OF TRUSTEES
February 5, 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 10:00 a.m.
ROLL CALL
MEMBERS PRESENT:
Juan Albarran, President
Andrew Kuljis, Secretary
Trustee James Coburn
Trustee Steven Domanski
Trustee Jeff Cawdrey
Trustee Chris Hart
Trustee Chris Stine
Trustee Mark Akahoshi
Trustee David Peters
Trustee Steve Ruda
Trustee Gene Bednarchik
Trustee Steve Tufts
Trustee Francisco Hernandez
Trustee David Ortiz
Trustee Steve Berkery
Trustee David Lowe – Pension
Trustee Barry Hedberg – Pension
Trustee Tim Larson – Pension
Todd Layfer – Executive Director
MEMBERS ABSENT:
Trustee Craig White (Excused)
Trustee Doak Smith (Excused)
Trustee Rick Godinez (Excused)
Trustee Tyler Tomich (Excused)
Robert Steinbacher, Vice President (Excused)
GUESTS:
Bob Olsen, L.A. Retired Fire & Police
Lee Kebler, L.A. Retired Fire & Police
Dennis Mendenhall, Retired
Garth Flint, Beacon Pointe Advisors
Mike Breller, Beacon Pointe Advisors
INVOCATION & Flag Salute
Tim Larson led the invocation. Steve Ruda led the flag salute.
RATIFICATION OF MINUTES
Juan Albarran entertained a motion to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held January 8, 2014. David Ortiz so moved. David Lowe 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 8, 2014.
PRESIDENT REPORT
1) Juan Albarran referred to the new recruitment class and indicated that they were able to meet with the new recruits and speak to them about joining the Medical Plan. He reported that they collected 67 cards from them and were waiting for UFLAC to submit drop cards if any. He stated that they may end up with 60 joining the plan out of the 70 class members.
2) Juan Albarran mentioned the status of a member from Fire Station 88 who suffered injury while on the job. Steve Berkery reported that the member is doing well and all his needs are being met.
BUILDING COMMITTEE REPORT
Steve Domanski reported that the Building Committee met with the Ware Malcomb architects last week and revised some of the plans. He stated that they will meet again to review revised plans on February 12th. Domanski also mentioned that they will discuss costs.
INVESTMENT REPORT
Juan Albarran informed the Board that the Investment Committee will have a meeting on February 11th at the Beacon Pointe offices in Newport Beach.
Garth Flint presented the Investment Portfolio performance ending December 31, 2013 and reviewed the overall market performance. Mike Breller reported that the composite portfolio returned 14.5% for the calendar year 2013 and indicated that the Allocation Index was at 14.8%. He stated that overall, the portfolio had a strong year.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer presented the proposed 2014 Budget for approval. He indicated that the proposed budget had already been presented and approved by the Administrative Committee. He reviewed all projected costs and income from Relief, Operations and the new 7470 Figueroa building.
David Lowe motioned to approve the proposed 2014 budget presented by Todd Layfer.
Tim Larson seconded. There was no discussion or objections.
Motion carried to approve the proposed 2014 budget presented by Todd Layfer.
ADMINISTRATIVE COMMITTEE REPORT
Jeff Cawdrey presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $909,154.46. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $909,154.46.
The committee recommends and I so move to pay the professional fees in the amount of $86,536.80. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $86,536.80.
The committee recommends and I so move to approve travel expenses of up to $1,000 for medical attorney, Bob Macaulay, to attend the annual HIPAA training for LAFRA staff. He stated that training will take place on March 19th. There was no discussion or objections.
Motion carried to approve travel expenses of up to $1,000 for Bob Macaulay to attend annual HIPAA training.
The committee recommends and I so move to approve $1,700 for staff and volunteer shirts. There was no discussion or objections.
Motion carried to approve $1,700 for staff and volunteer shirts.
The committee recommends and I so move to approve sending two Trustees to the SIIA, IFEBP Medical Management, IFEBP Washington Legislative and Express Scripts Drug Trend Symposium. There was no discussion or objections.
Motion carried to approve sending two Trustees to each stated conference.
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.
The committee recommends and I so move to increase the medical premium rate by 2% for actives and 7% for retirees. There was no discussion or objections.
Motion carried to increase medical premium rates by 2% for actives and 7% for retirees.
The committee recommends and I so move to increase copays for in network PPO office visits from $10 to $15 and out of network copays from $20 to $30. There was no discussion or objections.
Motion carried to increase copays for in network PPO office visits from $10 to $15 and out of network copays from $20 to $30.
The committee recommends and I so move to modify the plan to cover accidental injury the same as with medical care.
Motion carried to modify the plan to cover accidental injury the same as with medical care.
The committee recommends and I so move that the Medical Plan conduct an RFP for its pharmacy benefit plan manager. There was no discussion or objections.
Motion carried to approve the medical plan to conduct an RFP for its pharmacy benefit plan manager.
The committee recommends and I so move to expand the dispersion of the ERRP funds to cover all Rx copays for generic medication refills at retail and mail orders effective July 1, 2014. David Peters stated that this would enable them to fully utilize the ERRP funds by the end of 2014. There was no further discussion or objections.
Motion carried to increase the dispersion of the ERRP funds to cover all Rx copays for generic medication refills at retail and mail orders.
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 $13,745.20,
The Estate Planning benefit in the amount of $7,200,
The Life & Accident Death Benefits of $24,000,
The Life & Accident Withdrawals of $2,698,
The Relief Death Benefits in the amount of $31,500.
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
Henry R. Auguste
Jerold M. Andrew
Leonard P. Cobb
Robert E. Wooden
Charles S. Zuber
Morris E. Denton
John E. Holland
ASSISTANCE COMMITTEE
Tim Larson presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $20,871.57 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $20,871.57 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/WEB REPORT
Chris Hart informed that there was a packet sent out to Fire Stations and vendors containing the new ad pricing.
SECRETARY’S REPORT
Andy Kuljis thanked the Trustees for helping with the flying of the flags for members who have passed. He reported that they have been attending more funerals lately and would appreciate help in attending from Trustees.
OLD BUSINESS
Juan Albarran stated that they will be placing the conference dates on the master calendar.
Todd Layfer mentioned that the Scholarship Application is now online. He stated that applicants will be able to complete and submit online for consideration. He mentioned that the exam will take place here at the Relief office on April 12th.
SETTING OF DATES
1) Beacon Pointe Advisors Meeting – February 11th
2) Hook & Ladder Enduro – March 22nd
3) SIIA Conference – March 24th – 26th
4) Scholarship Program Essay – April 12th
5) Corbin Bowl – April 27th
6) LAFRA Reunion Pechanga – May 19th – 23rd
7) Hope for Firefighters – June 5th
8) World Fire Games – August 15th – 24th
RETIREMENT DINNERS
1) Jon Holtby – March 5th Braemar Country Club
2) Jon Balich – March 8th The Overland
3) Greg Gibson – March 11th Odyssey Restaurant
ADJOURNMENT
Juan Albarran entertained a motion to adjourn. David Peters moved. Larson seconded. There was no discussion and no objections.
Motion carried to adjourn. The Board of Trustees meeting adjourned at 11:40 pm.
Juan Albarran, President
