MINUTES OF THE BOARD OF TRUSTEES
March 7, 2018
CALL TO ORDER
President Bob Steinbacher called the meeting of the Board of Trustees of the Los Angeles Firemen’s Relief Association to order at 10:45 a.m.
ROLL CALL
MEMBERS PRESENT:
Bob Steinbacher, President
Jeff Cawdrey, Vice President
Andrew Kuljis, Secretary
Trustee David Peters
Trustee Chris Stine
Trustee Frank Aguirre
Trustee Kenneth Breskin
Trustee Craig White
Trustee Jim Duffy
Trustee Gene Bednarchik
Trustee Steve Berkery
Trustee John Jacobsen
Trustee Joe Vigil
Trustee Tim Freeman
Trustee Mike Sailhamer
Trustee Steve Domanski – Pension
Trustee Doak Smith – Pension
Todd Layfer – Executive Director
Liberty Unciano – Controller-Treasurer
MEMBERS ABSENT:
Trustee Gayle Sonoda
Trustee Tim Larson – Pension
Trustee Richard Moody
Trustee Danny Wu
Trustee Tyler Tomich
Trustee Rick Godinez
GUESTS:
Lee Kebler, LARFPA
Bob Olsen, LARFPA
Tom Stires, Retired
INVOCATION & Flag Salute
Frank Aguirre led the invocation. Jim Duffy led the flag salute.
RATIFICATION OF MINUTES
Bob Steinbacher entertained a motion to ratify and approve the Board meeting minutes of February 7, 2018. David Peters so moved. Craig White seconded. There was no discussion or objections.
Motion carried to approve minutes Board meeting minutes of February 7, 2018.
PRESIDENT REPORT
1) Bob Steinbacher and Dawna Gray addressed the Board regarding the Pension subsidy issue and the Medical Plan premium rates.
2) Bob Steinbacher informed the Board of a request from a member who retired in 2000 for reinstatement of LAFRA membership. He indicated that the individual wrote a letter explaining his reason for the lapse in membership and asked the Board to consider his reinstatement.
David Peters motioned to approve reinstatement as requested. Gene Bednarchik seconded. There was no discussion or objections.
Motion carried to approve reinstatement as requested.
3) Bob Steinbacher referred to the Hook & Ladder Enduro and asked who is planning to attend.
4) Bob Steinbacher referred to the Pechanga Reunion and asked those interested in attending to let Irma know so that she can reserve a hotel room.
5) Bob Steinbacher informed that the L.A. Fire & Police Pension offsite meeting will be held on April 5th.
INVESTMENT COMMITTEE REPORT
John Jacobsen reported on the annual investment meeting held at Beacon Pointe. He indicated that they discussed the overview of LAFRA’s investments and manager performance. He indicated that they met with Engaged Capital.
Garth Flint presented the 2017 investment performance on the LAFRA portfolio. He reported that Growth and International Growth has outperformed Value for some time now. He indicated that the Bond market is down on the year to date, due to increasing rates, although he felt that they wouldn’t increase substantially. He reviewed the overall market and money manager performance.
VICE PRESIDENT REPORT
1) Jeff Cawdrey referred to the Bylaw review meeting and indicated that they discussed proposed language changes under the Associate Membership section and applying for membership after the first five years on the department. He also indicated that they will obtain additional information regarding the Sick & Injury benefit as it pertains to pregnancies.
2) Jeff Cawdrey informed that he attended the Drill Tower 81 recruit class. He stated that there were 67 new recruits and 66 signed up as Associate Members.
3) Jeff Cawdrey referred to the upcoming conferences and indicated that he, John Jacobsen and Tyler Tomich will be attending the Funding & Finance of Health Benefits in Las Vegas. He stated that the next conference will be the Washington Legislative Update and indicated that so far, John Jacobsen and Joe Vigil have requested to attend.
EXECUTIVE DIRECTOR’S REPORT
1) Todd Layfer informed that the first Hope for Firefighters kick-off meeting will be on March 14th. He reported that Ralphs has once again stepped up to sponsor the event with $25K.
2) Todd Layfer referred to the HIPAA training and indicated that the LAFRA staff and retired Trustees will attend on March 8th.
3) Todd Layfer informed that on February 28th, we had a 401K educational meeting for staff with our financial advisor and Mass Mutual. He reported that LAFRA’s plan fees compared very favorably to the comparative benchmark in terms of what we pay for services when comparing to other companies with similar asset values.
4) Todd Layfer referred to the new phone system and indicated that it will be installed the weekend of April 6th.
5) Todd Layfer informed that LAFRA will have two Medicare informational seminars; March 20th and March 22nd. He indicated that they will discuss how Medicare works alongside the LAFRA Medical Plan and the Kaiser Senior Advantage Plan.
ADMINISTRATIVE COMMITTEE REPORT
Frank Aguirre presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $872,827.16. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $872,827.16.
The committee recommends and I so move to pay up to $750 for a foursome of golf and tee sign for the LAFD Sertoma Charity Golf Tournament. There was no discussion or objections.
Motion carried to pay up to $750 for a foursome of golf and tee sign for the LAFD Sertoma Charity Golf Tournament.
MEDICAL COMMITTEE REPORT
Frank Aguirre 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 reduce the medical premium rates by 5% for active members and 2% for retired members effective July 1, 2018. There was no discussion or objections.
Motion carried to reduce the medical premium rates by 5% for active members and 2% for retired members effective July 1, 2018.
Todd Layfer informed that there will be no plan design changes, however we are adding a new wellness benefit with the Healthy Lifestyles program. He indicated that this will include gym membership as well as coaching for smoking cessation and healthy nutrition options. He stated that this will be offered only to LAFRA Medical Plan members.
The committee recommends and I so move to enter into contract with Healthy Lifestyles. There was no discussion or objections.
Motion carried to enter into contract with Healthy Lifestyles.
RELIEF COMMITTEE REPORT
Mike Sailhamer presented the following motion.
The committee recommends and I so move to pay:
The Sick & Injury benefits in the amount of $16,285.19
The Estate Planning benefit in the amount of $5,400
The Life & Accident Death Benefit in the amount of $12,000
The Relief Death Benefits in the amount of $65,000
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Mike Sailhamer read the names of members who recently passed and asked for a moment of silence from the Board.
MEMORIALS
Ernest T. Spearman
Douglas F. Cully
Jack R. Brodie
Henry I. Bent
Carl C. Wilson
Edwin R. Crooker
Bernard E. Nipp
Lawrence C. Shuler
Robert J. Laret
Gene F. Taylor
Tomas L. Rix, Jr.
Leroy M. Lilly
Seferino Godinez
ASSISTANCE COMMITTEE
Mike Sailhamer presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $2,725.95 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $2,725.95 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.
ADVANCEMENT COMMITTEE REPORT
The committee recommends and I so move to advance funds for both active and retired members. There was no discussion or objections.
Motion carried to advance funds for both active and retired members.
SCHOLARSHIP COMMITTEE REPORT
Doak Smith indicated that there are six applicants for Scholarship. He indicated that the deadline for applications is March 31st. He stated that the exam date will be on April 14th.
EXECUTIVE SESSION
The Board entered into Executive Session at 11:59 a.m.
The Board adjourned from Executive Session at 12:30 p.m.
Action was taken on a vendor matter during executive session.
SETTING OF DATES
1) Hook & Ladder Enduro – March 17th
2) L.A. Marathon – March 18th
3) Lane Kemper Softball Tournament – May 2nd
4) Pechanga Reunion – May 21st – 25th
5) Hope for Firefighters – June 7th
RETIREMENT DINNERS
1) Chuck Butler – March 8th B @ Brookside Golf Club (White)
2) Dean Ulrich – March 21st A @ Fire Station 80 (Vigil)
3) Tony Senior – March 24th B @ Holiday Inn Torrance Getaway (Freeman)
4) Brian Baltad – March 25th C @ Fire Station 69 (Doak)
5) Mike Schaefer – April 5th C @ Caesar Banquet Hall (Berkery)
6) Glenn Ames – April 20th B @ Sagebrush Cantina
ADJOURNMENT
Bob Steinbacher entertained a motion to adjourn. Frank Aguirre so moved. Craig White seconded. There was no discussion and no objections.
Motion carried to adjourn. The Board of Trustees meeting adjourned at 12:40 p.m.
Bob Steinbacher, President