MINUTES OF THE BOARD OF TRUSTEES
June 4, 2008
CALL TO ORDER
President David Marino called the meeting of the Board of Trustees of the Los Angeles Firemen’s Relief Association to order at 11:55 a.m.
ROLL CALL
MEMBERS PRESENT:
- David Marino, President
- Robert Steinbacher, Vice President
- Trustee James Coburn – Battalion 1
- Trustee Gary Matsubara – Battalion 2
- Trustee Juan Albarran, Battalion 3
- Trustee Chris Hart – Battalion 4
- Trustee Tim Larson – Battalion 6
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee William Dunn – Battalion 12
- Trustee Michael Overholser – Battalion 14
- Trustee Francisco Hernandez – Battalion 17
- Trustee Dennis Mendenhall – Battalion 18
- Trustee David Ortiz – Headquarters 1
- Trustee Kurt Stabel – Headquarters 2
- Trustee Tom Stires – Pension 2
- Executive Director – David Ned Smith
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Mark Akahoshi, Battalion 5(Excused)
- Trustee Gene Bednarchik – Battalion 7 (Excused)
- Trustee Chris Stine – Battalion 11 (Excused)
- Trustee John Jacobsen – Battalion 13 (Excused)
- Trustee Glen Prine – Battalion 15 (Excused)
- Trustee Warren Braun – Pension 1 (Excused)
- Trustee Robert Henderson – Pension 3 (Excused)
- Andrew Kuljis, Secretary-Treasurer (Excused)
GUEST PRESENT:
- Garth Flint, Beacon Pointe Advisors
- Dawna Gray, Bradawn Inc.
INVOCATION
Trustee David Ortiz led the invocation.
PRESIDENT’S REPORT
1) President David Marino entertained a motion to ratify the Minutes of the Board Meeting held May 8, 2008. Trustee David Peters so moved. Trustee Gary Matsubara seconded the motion. There was no discussion or objections.
Motion carried to ratify the Minutes of the Board Meeting held May 8, 2008.
2) David Marino mentioned that all Odd numbered Trustees would be up for election for 2009 along with Pensions 1 and 3.
3) David Marino reminded the Board of the meeting with the Credit Union regarding their Fire Family Foundation on June 12th at 7:30a.m.
MEDICAL COMMITTEE REPORT
1) President Marino informed the Board that a member was present to address her denied medical appeal.
The member presented a packet of information to Board members for review. The member informed the Board of her request for coverage for non-covered services. David Marino informed the member that they would be notified of the Board’s decision in writing.
Trustee David Peters motioned to deny the member’s request of coverage for non-covered services. Trustee David Ortiz seconded the motion. There was discussion regarding the issue. There was no further discussion or objections.
Motion carried to deny the member’s request of coverage for non-covered services.
2) David Marino referred to the tabled discussion from last month’s Board meeting regarding offering LAFRA employees the option of enrolling into the LAFRA Medical PPO Plan. Trustee Gary Matsubara asked if it was cost effective. Dawna Gray from Bradawn Inc. indicated that it would cost the same amount of money as the current cost because the proposal is that LAFRA would subsidize employee premiums up to the Kaiser Premium as is done currently. The employees would pay the difference between the Kaiser Premium and the PPO premium out-of-pocket. She stated that most associations extend the ability to participate in their healthcare plans to their employees. She also indicated that it would not place LAFRA in any new regulatory position and does not change the status of the plan under ERISA definitions.
Dawna mentioned another alternative was to terminate the Kaiser Plan altogether and go to a fully-insured plan such as Blue Cross plan where employees would have the option to enroll into the network’s HMO or PPO. She stated that LAFRA cannot offer a fully-insured Blue Cross plan alongside the LAFRA Kaiser Plan. She indicated that the employee population was too small and Blue Cross would not allow an organization to have another carrier competing with their small product as an offering to the employees.
Kurt Stabel asked if the employees would have the same right of survivorship of coverage. Dawna stated that they do not and indicated that they would clearly define and set guidelines under the policy. She indicated that the only right the employees who leave LAFRA employment or surviving dependents would have is to continue coverage under COBRA that would have a defined period of time.
Tim Larson referred to the issue at the last Board meeting that LAFRA employees would pay less for their medical premiums than firefighters. Dawna indicated that LAFRA now pays 100% of the Kaiser premiums for employees. She stated that they do not have any out-of-pocket costs currently with Kaiser. The premiums are a result of the current employee benefit. David Smith reminded the Board that employees do not get a defined retirement that firefighters get.
David Smith mentioned that this was a significant issue when recruiting in that many candidates do not want employment where the only medical coverage is an HMO. He stated that it would help attract and retain quality employees. He also indicated that Ridley, the Association’s attorney, has reviewed the proposal and found no problems with offering the medical plan to employees. His written comments are attached.
Doak Smith asked if they had discussed options and scenarios of risk and negativity if they were to give the LAFRA employees an option to join the plan. David Ortiz indicated that those issues had been discussed and referred to the attorney. Dawna added that LAFRA would control the eligibility for the health plan. David Smith referred to the comments from Ridley and indicated that he also states that they would need to keep the number of participants to a small percentage of the total in the plan. David stated this is not an issue as we only have 30 employees and most of them will not switch medical plans.
David Peters motioned to remove the issue from the table. Michael Overholser seconded the motion. There was no discussion or objections.
Motion carried to remove the issue from the table.
David Peters motioned to approve to offer the LAFRA PPO plan to the LAFRA employees. Michael Overholser seconded the motion. On the question, there was an objection. Thirteen voted in favor of the motion, two voted opposed.
Motion carried to approve to offer the LAFRA PPO Plan to the LAFRA employees.
Chairman Michael Overholser presented the following motion.
The committee recommends and I so move to accept the Applications to the Medical Plan. There was no discussion or objections.
Motion carried to accept the Applications to the Medical Plan.
Michael Overholser informed the Board that they were currently working on a delinquency report for members behind on their medical premium payments. He indicated that certified letters have been sent to the members informing them of their delinquent status. He stated that they will have a process in place where they would suspend medical coverage until their delinquent balances were paid in full or until they have responded with acceptable reasons for their delinquencies.
Applications to the LAFRA Medical Plan
ROOKIES
ACTIVE
MEMBER APPLICANTS COMING ON PLAN EFFECTIVE DATE
- Avila, Christian Self 5/12/08
- Barcelona, Alex Justin Self 5/12/08
- Barnett, Michelle Self 5/12/08
- Brownell Aaron E. Self 5/12/08
- Brownell, Amber 5/12/08
- Brownell, Asher 5/12/08
- Carpenter, Kevin Michael Self 5/12/08
- Carpenter, Traci (Spouse) 5/12/08
- Cavanagh, Brendan Karl Self 5/12/08
- Doyle, Keith Self 5/12/08
- Marcoux, Erika 5/12/08
- Falls, James Robert Self 5/12/08
- Fisher, Adam Robert Self 5/12/08
- Francis, Nigel J. Self 5/12/08
- Gapuzan, Felix E. Self 5/12/08
- Hannan, Shawn J. Self 5/12/08
- Hannan, Jocelyn May (Dtr.) 5/12/08
- Hannan, Sadie Lynn (Dtr.) 5/12/08
- Hannan, Amanda Kaye (Spouse) 5/12/08
- Hernandez, Kyle Thor Self 5/12/08
- Hong, Dennis S. Self 5/12/08
- Jabr, Alexandra Yvonne Self 5/12/08
- Jun, William Self 5/12/08
- Kenoi, Keith Kalie Kenji Jr. Self 5/12/08
- Kline, Kenneth Self 5/12/08
- Lampkin, Eric A. II Self 5/12/08
- Meza, Angel Self 5/12/08
- Newon, Bryan Jeffrey Self 5/12/08
- Perelman, Daniel Lee Self 5/12/08
- Samuels, Shelby A. Self 5/12/08
- Sharlein, James A. Self 5/12/08
- Sharlein, Dylan (Son) 5/12/08
- Sermeno, Eduardo A. Jr. Self 5/12/08
- Serrano, Omar Self 5/12/08
- Smith, Jeremy Michael Self 5/12/08
- Walker, Adam Richard Self 5/12/08
- Yim, Jason Edward Self 5/12/08
- Zeller, Matthew John Self 5/12/08
ACTIVE
MEMBER APPLICANTS COMING ON PLAN EFFECTIVE DATE
- Bart, Matthew Allen Bar, Cody Joseph (Son) 4/24/08
- Boote, Kevin Donald Boothe, Melissa (Spouse) 5/10/08
- Cook, Brian Scott Cook, Hailey Jean (Dtr.) 4/29/08
- Ford, Ephrian William Ford, Langston David (Son) 4/2/08
- Herman, Huston Sherwood Herman, Steven Michael (Son) 4/22/08
- Langhans, Cameron Alan Langhans, Nicolette Sofia (Dtr.) 4/8/08
- Robideau, Nicholas Alan Robideau, Jake Wyatt (Son) 4/17/08
- Safran, Michael Safran, Kai Michael (Son) 5/5/08
- Sanchez, Jose Rafael Victor, Yesenia (Dom. Partner) 6/1/08
- Thompson, Matthew Raymond Thompson, Luke Andrew (Son) 4/17/08
ROOKIES
MEMBER APPLICANTS COMING ON PLAN EFFECTIVE DATE
- Archer, Jon-Paul Self 7/1/08
- Archer, MaryJane (Spouse) 7/1/08
- Archer, Griffin (Son) 7/1/08
- Arhcer, Isabella (Dtr.) 7/1/08
- MacIntyre, Tommy Self 7/1/08
- Morlock, James H. Self 7/1/08
- Needham, Ryan C. Self 7/1/08
- Romo, Matthew R. Self 7/1/08
- Smith, Marteese R. Self 7/1/08
- Waschak, Matthew Thomas Self 7/1/08
INVESTMENT COMMITTEE
Chairman Kurt Stabel informed the Board that he and Robert Steinbacher had attended an investment conference called “Portfolio Theory and Management” at the Wharton School of Business in Philadelphia. He indicated that over four days they reviewed Modern Portfolio Theory, Money Management and Financial Analysis. He also indicated that they were able to review different Pension Plans from around the nation to use as a benchmark to gauge LAFRA’s performance relative to other peers.
Garth Flint indicated that they plan to come back to the Board meeting in July and address the Board on basic strategies on Alternatives, such as Hedge Funds, Real Estate, Commodities, Private Equity and Venture Capital. He indicated that they are seeing exposure to “alternatives” in varying percentages anywhere from 20% up to 50% at not-for-profits. He stated that their goal was to get the Board up to speed and exposure on the area of “Alternative Investment”. When looking into alternatives, Garth stated that they are looking for a non-correlating asset classes that will behave well in adverse times. He mentioned that in some disciplines when Hedge Funds are concerned, such as Market Neutral Funds, they actually use it as a Fixed Income Surrogate. He stated that he wanted to be sure that the Board was educated and comfortable with the asset class.
Kurt indicated that what they planned on was slightly reducing the Domestic Equity and Fixed Income components of the portfolio and re-allocate those resources over to alternatives. He also indicated that they would review and further define alternatives in the Investment Policy. Garth also stated that it would be a gradual change and process that will be undertaken over approximately one to two years.
Kurt updated the Board on the managers and stated that they had placed Knightsbridge on the “watch list” because of their poor performance which has since slightly recovered but this will have to be review at the end of Q2. He also mentioned that Stralem and PIMCO continued to do very well in a difficult environment.
VICE PRESIDENT’S REPORT
1) Vice President Steinbacher stated that they needed to know who would be attending the IFEBP Conference in San Antonio, TX as well as the SIIA Conference in Phoenix, AZ. He asked that they look at their calendars and let the Irma know as soon as possible.
2) Robert Steinbacher referred to Living Wills and Trust issue and asked Trustees to encourage members to utilize the Estate Planning Benefit. He mentioned how assets end up in probate and the costs involved. He indicated that he would write an article to be placed in the Grapevine to stress the importance of obtaining a Living Will and/or Trust.
ADMINISTRATIVE COMMITTEE REPORT
Chairman David Peters presented the following motions.
The committee recommends and I so move to approve the usual and customary bills in the amount of $1,015,463.72. There was no discussion or objections.
Motion carried to approve the usual and customary bills in the amount of $1,015,463.72.
The committee recommends and I so moved to approve the professional fees in the amount of $35,310.21. There was no discussion or objections.
Motion carried to approve the professional fees in the amount of $35,310.21.
The committee recommends and I so move that the Board delegate the authority to approve the insurance contracts to the Administrative Committee so that they may be considered and approved at the next committee meeting. He indicated that it has to do with timing with insurance renewals. There was no discussion or objections.
Motion carried to delegate the authority to approve the insurance contracts to the Administrative Committee so that they may be considered and approved at the next committee meeting.
The committee recommends and I so move to approve a 3.1% COLA increase for LAFRA employees effective July 1, 2008. There was no discussion or objections.
Motion carried to approve a 3.1% COLA increase for LAFRA employees effective July 1, 2008.
David Peters informed the Board that the Picnic/Regatta would be held on September 13th at the Hanson Dam. He mentioned that they did obtain liability insurance for both water and picnic area.
David Peters informed the Board that the asbestos abatement has been completed and removed at the 2900 W. Temple building. The completion of the abatement has been certified by an independent licensed inspector. The final payment would be paid from the funds set aside for this purpose in escrow. The project is on budget.
EXECUTIVE SESSION
Board entered into Executive Session at 1:10p.m.
Board adjourned from Executive Session at 1:42p.m.
David Peters stated that during the Executive Session, the Administrative Committee approved the hiring of a Marketing Coordinator and authorized management to negotiate the contract.
Todd Layfer informed the Board that Marino had a meeting with members of the Credit Union last week and it was mentioned that members have attempted to make donations to WODFF at the teller windows. Currently, LAFRA does not have a mechanism set up to do that. He called Richard Romero at the Credit Union and spoke with him about accepting donations. He stated that the Credit Union has agreed to accept the donations to WODFF and track the person donating as well as the amount. LAFRA would be responsible for sending the appropriate letters. He asked if they needed approval to set up an account to receive those donations.
The committee recommends and I so move that to open an account at the Credit Union for the purpose of accepting donations to WODFF. There was no discussion or objections.
Motion carried to open an account at the Credit Union for the purpose of accepting donations to the WODFF.
EXECUTIVE DIRECTOR REPORT
1) David Smith mentioned the planning for Hope for Firefighters event was going very well and that they had 18 teams participating in the muster contest and 24 Fire stations cooking.
2) David Smith informed that Board that Liz Denison had met with the Administrative committee and reviewed the FRITS program and content.
David stated all his other items had been reported on by the Administrative Committee.
RELIEF COMMITTEE REPORT
Chairman James Coburn presented the following motions.
The committee recommends and I so move to pay the Sick and Injury benefits for active and retired members in the amount of $10,560.11. There was no discussion or objections.
Motion carried to pay the Sick and Injury benefits in the amount of $10,560.11.
The committee recommends and I so move to pay the Estate Planning benefits in the amount of $9,948. There was no discussion or objections.
Motion carried to pay the Estate Planning benefits in the amount of $9,948.
The committee recommends and I so move to pay the Relief Death benefits in the amount of $22,500. There was no discussion or objections.
Motion carried to pay the Relief Death benefits in the amount of $22,500.
The committee recommends and I so move to pay the Life & Accident Death benefits in the amount of $12,000. There was no discussion or objections.
Motion carried to pay the Life & Accident Death benefits in the amount of $12,000.
MEMORIALS
RAYMOND H. FARRELL
OLIVER RAYMOND SPRENGER
BOB B. BOLLS
EDGAR B. CLEMENS
BENJAMIN H. RUCKEL
ASSISTANCE COMMITTEE
Chairman James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $55,538 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $55,538 to the Widows, Orphans & Disabled Firemen’s Fund.
Donation to Widows, Orphans & Disabled Firemen’s Fund for May 2008
- JOHN O’CONNOR Fire Hogs 2007 Donation
- GARY E. MONTGOMERY from the “Corbin Bowl”
- MAGIC MAINTENANCE, INC in memory of Brent Lovrien
- OCEANSIDE FIREFIGHTERS LOCAL 3736 in memory of Brent Lovrien
- LAMBDA CHI ALPHA FRATERNITY
- PATRICE J. DOWLING in memory of Captain Thomas Dowling
- VERNE W. DISNEY, JR. in gratitude for my wifes assistance
- NOTRE DAME HIGH SCHOOL in memory of Brent Lovrien from the “ND Grillers”
- DON W. CLEGG in memory of Sam Lostutter and Betty Bayless
- RICHARD L. WATTERS in memory of Tom Dowling
- RICHARD L. WATTERS in memory of Brent Lovrien
- CAROLYN GENTRY SHAW in memory of my father Battalion Chief Manuel “Mike” Carter
- GEORGE AQUINO in memory of Kathryn Uruburu
- HENRY HUIZINGA JR in memory of Betty Andrew
- ANDREA L. SMITH in memory of Kay Uruburu
- SUSAN K. YAMASHIRO in memory of Brent Lovrien from friends in the Santa Barbara Fire Dept.
- DEREK K. CHEW in memory of Tom Dowling
- SUSAN STONE in memory of Dick Coleman and Nancy O’Connor wife of Ray O’Connor
- JAMES STILES in memory of Mike Carter
- SUSAN VERNON in memory of Kay Uruburu wife of “Big” Nick Uruburu Fireman deceased
- CARLTON COOKMEYER in memory of Manuel Carter
- JIM JARVIS in memory of Bob Bolls
- JIM JARVIS in memory of Captain Lane Kemper
- TERRIE HUBBARD in memory of Brent Lovrien
- DIANE P. KALOPER in memory of Kathryn Uruburu
- FRANK R. KARMELICH in memory of Kathryn M. Uruburu
- ROSIE J. ROYAL in memory of Kathryn Uruburu
- MARIA T. DIAZ in memory of Kay Uruburu
- FRED E. IHDE in memory of Claude Creasey
- FRED E. IHDE in memory of Sam Chernow a friend from “Boyle Heights”
- LEE A. YAMASHIRO in memory of Brent Lovrien from friends in the L.A. County Fire Dept.
- UNITED WAY INC.
- MARIE D. SHAFER
- JOHN ARA in memory of Kathryn Uruburu
- DONALD L. RIEDMAN in memory of Mike Carter
- LLEWELLY NICHOLS in memory of “Uncle Mike”
- BILLIE J. BRUBAKER in memory of Betty Lou Andrew wife of Jerry Andrew
- CHARLES OSBORNE in memory of Betty Andrew
- CHARLES OSBORNE in memory of Sam Lostutter
- MABEL SCHARGITZ in memory of Kathryn Uruburu
- PATRICIA BRAJEVICH in memory of Kathryn Uruburu
- PHYLLIS J. BUZZA in memory of our dear friend Richard Coleman
- JAMES H. GRANT in memory of Dorothy M. Holloway
- CLARE A. WHEELER-BRANDT in memory of Dorothy M. Holloway
The committee recommends and I so move to assist a widow with medical premiums with a six month review. There was no discussion or objections.
Motion carried to assist a widow with medical premiums with a six month review.
The committee recommends and I so move to assist a widow with $550 per month plus medical premiums with a six month review. There was no discussion or objections.
Motion carried to assist a widow with $550 per month plus medical premiums with a six month review.
The committee recommends and I so move to assist a widow with $500 per month with a six month review. There was no discussion or objections.
Motion carried to assist a widow with $500 per month with a six month review.
The committee recommends and I so move to assist a member with $700 per month for healthcare with a six month review. There was no discussion or objections.
Motion carried to assist a member with $700 per month for healthcare with a six month review.
The committee recommends and I so move to assist a member with a prescribed insulin pump. There was no discussion or objections.
Motion carried to assist a member with a prescribed insulin pump.
The committee recommends and I so move to assist a widow with medical premiums with a six month review. There was no discussion or objections.
Motion carried to assist a widow with medical premiums with a six month review.
The committee recommends and I so move to assist a widow with medical premiums with a six month review. There was no discussion or objections.
Motion carried to assist a widow with medical premiums with a six month review.
EMERGENCY ADVANCEMENTS
Chairman James Coburn presented the following motions.
The committee recommends and I so move to advance a member $15,787 for back house payments. There was no discussion or objections.
Motion carried to advance a member $15,787 for back property taxes and back house payments.
The committee recommends and I so move to advance a member $2,000 emergency advancement. There was no discussion or objections.
Motion carried to advance a member $2,000 emergency advancement.
The committee recommends and I so move to proceed with a reversed mortgage for a member. He mentioned that it would be about $2,500 per month with a six month review. There was no discussion or objections.
Motion carried to proceed with a reversed mortgage for a member.
BY-LAWS COMMITTEE REPORT
Juan Albarran informed the Board that the committee has been reviewing the By-laws and indicated there are several recommended changes. He asked the Trustees to review and comment by the July 1st Board meeting.
SPECIAL EVENTS
Chairman David Ortiz mentioned the Hope For Firefighters event and mentioned that all the food booths are sold with plenty of sponsorships.
SETTING DATES
1) Hope for Firefighters – June 5th
2) Fire Hogs Run – June 7th
3) LAFD Invitational Golf Tournament – July 28th
4) Picnic/Regatta – September 13th
5) Strategic Planning Retreat – September 30th – October 1st
6) Open House – November 6th
7) Chili Cook Off – November 22, 2008 (7:00a.m. – 2:00p.m.)
8) Holiday Hoorah – December 13th Biltmore Hotel
RETIREMENT DINNERS
1) Howard Kaplan – June 9th Knollwood Country Club
2) Wilfred Bisson – June 12th San Antonio Winery (Marino/Kuljis)
3) Bob Haffner & Gary Sauck – June 13, 2008 John Christman’s Home
4) Michael J. Arguelles – June 18th Disabled American Veteran’s Center (Marino)
5) Ted Bailie – June 18th Ports O’Call (Kuljis)
6) Steve Montiel – June 21, 2008 TBA (Larson)
7) Larry McAndress – June 11th Ports O’Call (Larson)
8) Robert Kilpatrick – June 27, 2008 Knollwood Country Club (Marino)
9) Mike Proffitt – July 17th Doubletree Hotel (San Pedro) Madeo Room (Larson)
10) Will Alderson, Mike Gross, James Just, Richard Miller, Edward Strange – October \
3rd Odyssey (Smith)
ADJOURNMENT
David Marino entertained a motion to adjourn. Trustee David Peters so moved. Trustee Kurt Stabel seconded the motion. There was no discussion and no objections.
Motion carried to adjourn in.
The Board of Trustees meeting adjourned at 2:11p.m.
David Marino, President