MINUTES OF THE BOARD OF TRUSTEES
June 6, 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 11:25 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn
- Trustee Jeff Cawdrey
- Trustee Gene Bednarchik
- Trustee Chris Stine
- Trustee Doak Smith
- Trustee Robert Steinbacher
- Trustee Steve Tufts
- Trustee Craig White
- Trustee Francisco Hernandez
- Trustee Steven Domanski
- Trustee Rick Godinez
- Trustee Gary Matsubara
- Trustee Kurt Stabel
- Trustee Mark Akahoshi
- Trustee David Peters
- Trustee David Ortiz
- Trustee Barry Hedberg
- Trustee David Lowe
- Trustee Tim Larson
- David Ned Smith – Executive Director
- Todd Layfer – Controller
MEMBERS ABSENT:
- Trustee Chris Hart (Excused)
- Trustee Michael Overholser (Excused)
GUESTS:
- INVOCATION & Flag Salute
- Rick Godinez led the invocation. David Lowe 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 May 2, 2012. Gary Matsubara so moved. David Peters 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 May 2, 2012.
PRESIDENT’S REPORT
1) Jacobsen informed the Board that they will hold a Policy Committee meeting on June 20th to review the policy book and add items that have been approved. He also mentioned that they will have a By-laws committee meeting that same day. He asked the Trustees if they had any issues concerning the By-laws to submit them in writing for discussion and for debate.
2) Jacobsen stated that they have been working on a workers comp flow process chart for presumptive claims with the City. He indicated that Wayne Sherman is the key point person at HSB for presumptive claims for members if they are active or within the ten-year time frame for filing after retirement.
3) Jacobsen referred to the Eternal Flame Society for those members who wish to leave behind a contribution as a legacy to the WODFF. He stated that so far they have fifteen members signed up with various amounts committed; he indicated that some wish to remain anonymous.
VICE PRESIDENT REPORT
Juan Albarran reported on the Grass Valley event and indicated that the event was well received with about 130 attendees.
AUDIT COMMITTEE REPORT
Doak Smith reported on the auditors findings compared to previously received investment reports on the unrealized loss for 2011 due to the poorly performing stock market. He stated that Beacon Pointe reported that the loss, after investment management fees, compared to the audit report had a difference in $3.6 million. He reported that the majority difference ($2.6 million) in reporting was that interest and dividends received in the investment account was shown on a different line in the Audit report and was really not a difference between the two reports. He reviewed the remaining $1 million difference in figures which was that not all of the management fees, willed estates and capital calls for investments had been included in the Beacon Pointe reports. David Smith indicated that everything is now reconciled and that Garth has restated the last four years of investment returns. The revised numbers were only slightly different than the previously reported numbers. All future reporting will be done with this in consideration to maintain accuracy.
Doak Smith made the following motion. The committee recommends and I so move to accept the audit report presented for 2011. There was no further discussion or objections.
Motion carried to accept the audit report presented for 2011.
EXECUTIVE DIRECTOR’S REPORT
Todd Layfer presented the First Quarter Expenditure report for 2012. He reported on the main revenue sources and stated that everything was on target for the budget. He stated that benefits paid to members were tracking below what was anticipated for the budget except for the DME benefit. He indicated that the contributions were on target for the year and mentioned that the Hook & Ladder event netted $15K and the Buzzard Baits netted $8K. He referred to the operating expenses and stated that they are within budget; however, he stated that the Trustee expenses were up due to the Wharton Investment conference. He reported on the market value of the portfolio and indicated that they were holding steady. Todd summarized that the Association was on budget and that revenues were exceeding expenditures.
INVESTMENT COMMITTEE REPORT
Jacobsen informed that the investment transfer of funds to the three new investment managers have been completed. He also briefly reported on several Trustee’s participation in the Wharton Investment Conference.
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 $998,933.67. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $998,933.67.
The committee recommends and I so move to pay the professional fees in the amount of $100,099.52. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $100,099.52.
The committee recommends and I so move to purchase another 100 flag boxes from Daniel Marino at $140 each. There was no discussion or objections.
Motion carried to purchase another 100 flag boxes from Daniel Marino at $140 each.
The committee recommends and I so move to enter into contract with the Hentzenwerke Corporation web consultants for $37K to develop the specification leading to the upgrade the FRITS database system. Jacobsen reported that this company will go through the entire FRITS system and will document how to recreate the program when converting from the Fox Pro data base which has not been maintained by Microsoft for several years. He also indicated that this will be Phase II of the project. David Smith stated that this contract will include delivery of a 300-page detailed specification so they can then send out to bid to upgrade the FRITS system.
Motion carried to enter into contract with the Hentzenwerke Corporation web consultants at $37K to develop the specification leading to the upgrade the FRITS database system.
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.
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 $27,104.38
The Estate Planning benefit in the amount of $4,800
The Life & Accident Withdrawals in the amount of $3,111
The Relief Death Benefits in the amount of $31,500
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
PHILIP K. BOUKATHER
EDWARD J. DREHER
PAUL L. MITTENDORF
WALTER L. BALL
WINFRED D. PARKER
EARL G. JOHNSON
EDWARD E. WEGNER
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $16,906.02 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $16,906.02 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.
James Coburn informed the Board that they have decided to change a member’s payroll deduction plan.
SCHOLARSHIP COMMITTEE REPORT
Doak Smith reported that the grading has been done for all the essays and stated that the winners will be notified within the week. He also indicated that they will ask the winners to come to the July Board meeting for their checks.
NEW BUSINESS
James Coburn mentioned that the amount of money taken in from the payroll deductions has been declining and asked if there was a way that they could reach out to those not already contributing. David Smith mentioned that there are about 40% of the membership that do not contribute through the payroll deduction system. He stated that Marlene is working on a correspondence to members not contributing to WODFF through payroll deductions.
SETTING OF DATES
1) Hope for Firefighters – June 7th
2) Fallen Firefighter Memorial Run June 30th
3) Over the Line Tournament – September 12th
4) LAFD Invitational Golf Tournament – September 24th
5) IFEBP Annual Employee Benefits Conf. – November 11th – 14th
6) LAFRA Open House – December 1st
RETIREMENT DINNERS
1) Tom Burroughs, Barry Sears, Rick Semsch, Jim Walters – June 9th FS 114 (Peters)
2) Frank Cosola – June 9th Frank & Susan’s Home Leona Valley (Domanski)
3) Gerald Horwedel – June 10th Odyssey Restaurant (Lowe)
4) Gail Martin, Jr. – June 11th Sutter’s Mill Restaurant (Bednarchik)
5) David Castaneda – June 16th Brookside County Club (Larson)
6) *Randall Opperman – June 24th Odyssey Restaurant *Dinner at 3:00pm (White)
7) Steve Owens – June 26th Avalon (Larson)
8) James Lawrence Gaffney – June 28th Sagebrush Cantina (Lowe)
9) Scott Ames – July 12th Knollwood Country Club (Peters)
10) Don Cascio and John Rojas – July 19th Los Robles Greens Golf Course (Albarran)
11) Wes Shundo – July 28th Elk’s Lodge #966 San Pedro (Larson)
12) Alan Bush – August 11th Scarlett Belle, Oxnard (Doak/Lowe)
ADJOURNMENT
John Jacobsen entertained a motion to adjourn. Gary Matsubara so moved. David Peters seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 12:34pm.
John Jacobsen, President