MINUTES OF THE BOARD OF TRUSTEES
July 9, 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 10:22a.m.
ROLL CALL
MEMBERS PRESENT:
Juan Albarran, President
Robert Steinbacher, Vice President
Andrew Kuljis, Secretary
Trustee James Coburn
Trustee Steven Domanski
Trustee Jeff Cawdrey
Trustee Tyler Tomich
Trustee Gene Bednarchik
Trustee Chris Hart
Trustee Steve Ruda
Trustee Chris Stine
Trustee Steve Berkery
Trustee Doak Smith
Trustee Rick Godinez
Trustee Tim Larson – Pension
Trustee David Lowe – Pension
Todd Layfer – Executive Director
MEMBERS ABSENT:
Trustee Mark Akahoshi (Excused)
Trustee Francisco Hernandez (Excused)
Trustee Craig White (Excused)
Trustee David Ortiz (Excused)
Trustee Steve Tufts (Excused)
Trustee Barry Hedberg – Pension (Excused)
Trustee David Peters (Excused)
GUESTS:
Dennis Mendenhall, Retired
Dave Wagner, Grapevine Editor
Bob Olsen, L.A. Retired Fire & Police Assoc.
Bill Quinn, L.A. Retired Fire & Police Assoc.
Tom Stires, Retired
INVOCATION & Flag Salute
Rick Godinez led the invocation. Gene Bednarchik 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 June 4, 2014. Tim Larson so moved. David Ortiz 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 June 4, 2014.
PRESIDENT REPORT
1) Juan Albarran stated that they have submitted the plans for the 7470 building to the City of Los Angeles for plan check and indicated that they are waiting for approval. He also mentioned that the electrical plans submitted by Simon Wong had been cleared before July 1st. Todd Layfer indicated that they have paid the Edison easement in the amount of $6,700 and have a five-year agreement. Juan Albarran stated that Iolo had given their 60-day notice to vacate and should be out by August 31st. He indicated that the last remaining tenant is currently looking for a place to move into, but has not confirmed a move-out date.
2) Juan Albarran mentioned that they have received a final payment from a member’s family for those bills that were encumbered to their property. He mentioned that the Relief Committee will continue with care for this member.
VICE PRESIDENT REPORT
1) Bob Steinbacher reported on the Brian Lee funeral services and indicated that they received an overwhelming amount of support.
2) Bob Steinbacher mentioned the Colorado Springs Memorial and stated that so far, Steve Berkery and Steve Ruda have volunteered to attend the memorial.
INVESTMENT COMMITTEE REPORT
Steve Domanski referred to the last Investment Committee meeting on June 25th and reported that they terminated Stralem & Co. and indicated that they will interview two more money managers to replace Stralem. He also indicated that Garth Flint suggested that they terminate the London Company which is their small cap manager. He stated that they will hold Small Cap/Mid Cap manager interviews on August 4th.
Steve Domanski referred to the LAFRA Investment Policy and indicated that they have made some changes to the asset allocations as well as changing from the S & P 500 Index to the MSCI All Country World Index. He indicated that this recommendation comes from Garth Flint because he feels that it would be a better measurement for the performance of our funds.
Juan Albarran entertained a motion to accept the proposed changes to the Investment Policy. Jeff Cawdrey so moved. Chris Hart seconded. There was no discussion or objections.
Motion carried to accept the proposed changes to the Investment Policy.
Juan Albarran entertained a motion to approve the distribution of funds from BRAVO to Southwest Value Partners. David Ortiz so moved. Doak Smith seconded. There was no discussion or objections.
Motion carried to approve the distribution of funds from BRAVO to Southwest Value Partners.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer reported on the Hope for Firefighters event and thanked all Trustees who helped out with the event. He indicated that the event was well attended and a success.
2) Todd Layfer reported on the insurance renewals and stated that the premium amount for this year was down about 8%. He stated that the total insurance package for the coming year will be $205,486. He stated that the main reason for the decrease was due to workers comp claims that have fallen off.
3) Todd Layfer presented the 1st Quarter Review of the LAFRA financials. He reported that the revenues were on target and stated that the member benefits were tracking favorably. He stated that the operating expenses were tracking under budget and indicated that Trustee expenses were on target. He referred to the professional fees for investments and indicated that they were also running favorably for the quarter, about 12.9% below what was budgeted. He briefly reviewed the valuation of the portfolio and indicated that the performance drivers were the International and Alternatives investments.
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 $1,078,346.26. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $1,078,346.26.
The committee recommends and I so move to pay the professional fees in the amount of $218,692.82. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $218,692.82.
MEDICAL COMMITTEE REPORT
Bob Steinbacher 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.
Todd Layfer reported that every July we are to pay the PCORI tax for each person enrolled in the Medical Plan. He stated that this year we have to pay approximately $23K.
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 $14,960.34,
The Estate Planning benefit in the amount of $4,175.92,
The Life & Accident Withdrawals in the amount of $2,698
The Life & Accident Death Benefit in the amount of $24,000
The Relief Death Benefits in the amount of $40,500.
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
Willis A. Friend
Wallace M. Decuir
Ray M. Carpenter
Joseph E. Lockwood
James R. Laflamme
Ora D. Mendenhall
Steward E. Premmer
Aldo Zuliani
James M. Barrett
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $15,005.30 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $15,005.30 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
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 referred to this year’s LAFRA Open House and indicated that we are accepting suggestions of the honoree for this year’s event. He indicated that Dave Wagner suggested honoring the Grapevine Photographers. Juan Albarran indicated that they needed to decide at the next Board meeting in order to get the honoree(s) in the Grapevine.
SECRETARY’S REPORT
Andy Kuljis reminded the Trustees to pay attention to their emails referring to the Flag Presentation requests. He also mentioned that Jim Dolan was attending the retiree breakfast in the O.C. that morning which helps them keep in touch and receive input.
BY-LAW COMMITTEE REPORT
Juan Albarran indicated that David Peters submitted a proposed bylaw change in the section pertaining to the selection of Trustees. Todd Layfer stated that they need to make a recommendation at the August Board meeting in order to send it for a vote by the membership.
SETTING OF DATES
1) Over the Line Tournament – September 3rd
2) L.A. Kings Hockey Fest – September 14th
3) Colorado Springs Memorial – September 18th – 21st
4) LAFD Invitational Golf Tournament – September 22nd
5) SIIA Conference Arizona – October 5 – 7
6) IFEBP Annual Conference (Boston) – October 12th – 15th
7) LAFRA Open House – December 6th
RETIREMENT DINNERS
1) Robert “Bob” Motheral – July 10th Towsley Lodge
2) Joseph Johnson – July 19th Friendly Hills Country Club
3) Robert Ruffino – August 28th LAFD Historical Museum
4) Richard Watson – August 30th Spring Lake Club House
5) Bassiano Peters Jr. – August 30th Marriott Hotel Marina del Rey
6) Gary Zieger – August 31st Fire Station 109
7) Ed Tapia – September 6th Castle Catering Pasadena
8) Matthew Powell – September 13th Dalmatian Amer. Club
9) Jim Eberle & Dave Rowley – September 26th 94th Aero Squadron
EXECUTIVE SESSION
The Board entered into Executive Session at 11:28am.
The Board adjourned from Executive Session at 11:42am.
Juan Albarran entertained a motion to approve the action taken in Executive Session on two personnel matters. James Coburn so moved. Doak Smith seconded. There was no discussion or objections.
Motion carried to approve the action taken in Executive Session.
ADJOURNMENT
Juan Albarran entertained a motion to adjourn in honor of Brian Lee. Tim Larson moved. Doak Smith seconded. There was no discussion and no objections.
Motion carried to adjourn. The Board of Trustees meeting adjourned at 11:43 a.m.
Juan Albarran, President