MINUTES OF THE BOARD OF TRUSTEES
November 3, 2011
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 10:40 a.m.
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee Jeff Cawdrey – Battalion 1
- Trustee Gene Bednarchik – Battalion 2
- Trustee James Coburn – Battalion 4
- Trustee Gary Matsubara – Battalion 5
- Trustee Chris Stine – Battalion 6
- Trustee Doak Smith – Battalion 9
- Trustee Francisco Hernandez – Battalion 10
- Trustee Chris Hart – Battalion 11
- Trustee Craig White – Battalion 12
- Trustee Mark Akahoshi, Battalion 13
- Trustee Robert Steinbacher – Battalion 14
- Trustee Steven Domanski – Battalion 15
- Trustee Steve Tufts – Battalion 18
- Trustee David Lowe – Pension 1
- David Ned Smith – Executive Director
- Controller – Todd Layfer
- Trustee Michael Overholser – Battalion 3 (Excused)
- Trustee Rick Godinez – Battalion 7 (Excused)
- Trustee David Peters – Battalion 17 (Excused)
- Trustee David Ortiz – Headquarters 1 (Excused)
- Trustee Kurt Stabel – Headquarters 2 (Excused)
- Trustee Barry Hedberg – Pension 2 (Excused)
- Trustee Tim Larson – Pension 3 (Excused)
- Tom Stires, Retired
- Garth Flint, Beacon Pointe Advisors
- Mike Breller, Beacon Pointe Advisors
INVOCATION & Flag Salute
Andy Kuljis 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 October 6, 2011. Gary Matsubara so moved. Gene Bednarchik 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 October 6, 2011.
INVESTMENT COMMITTEE REPORT
Garth Flint and Mike Breller of Beacon Pointe Advisors provided a summary report on LAFRA’s investment portfolio.
Garth mentioned that the last quarter was one of the worst quarters on record since 1974 and indicated that the market was down about 15%.
Mike referred to the LAFRA composite and mentioned that LAFRA is still ranking in the 18th percentile in the 3, 5, and 7 year period and are ahead of the policy index. He mentioned that Stralem has been doing very well in near term but still struggles with the 3-year number. He referred to the International managers and mentioned that IVA was added in the quarter to strategically move out some of the risk in the International markets and add a down market protector. He indicated that they are comfortable with the International managers’ rankings with the 3, 5 and 7 year periods.
Robert Steinbacher stated that because of Seligman’s poor performance, he asked for the Board’s approval to terminate their contract with them that day. He also mentioned that he and Jacobsen were going to visit three new possible investment managers in Pittsburg, Richmond and Dallas.
1) Jacobsen stated that they have had a lot of involvement with the Pensions Department and indicated that they are going to meet with them later in the day to discuss and present the audit information. He indicated that they don’t expect any obstacles and hope that the audit goes smoothly.
2) Jacobsen reported that they have received the funds from the ERRP filing totaling about $1.1 million. He indicated that these funds will be used for premium reductions and/or plan benefit enhancements.
3) Jacobsen stated that the Relief Committee wanted to place a policy in the policy manual that when active members go to retired status that they have a set time period of 60 days to change their status and the same payroll deductions would continue for 60 days that were in place at the time of retirement. He mentioned that when a member retires, LAFRA sends a packet of information asking them to inform LAFRA about their status change. He stated that when members do not return their packets in a timely manner, currently the accounting department has to send notices and track members down regarding their status change.
4) Jacobsen reported that he went to a meeting in the Controller’s office where they reviewed how the electronic pay system is being revamped. He indicated that it will affect LAFRA with programming changes and reformatting files.
5) Jacobsen referred to the travel policy and stated that they are looking to have expenses submitted and paid within 60 days from a conference.
6) Jacobsen stated that they continue to battle with Tri-Star on outstanding workers comp claims. He mentioned that they had a tentative agreement with Tri-Star to waive penalties and interest if they paid a particular claim within a two week time period. He stated that Tri-Star had reneged on the agreement. He stated that they will demand penalties and interest from this point forward but will continue to allow Tri-Star to utilize the Blue Cross network for discounts.
7) Jacobsen mentioned that there has been some discussion affecting non-Medicare retirees and Medicare retirees about what their subsidy is tied to. He indicated that Medicare eligible retirees are tied to a single payer LACERS plan that could change to a single party LACERS Medicare Advantage Plan. He stated that this could result in a reduction of around $100 of a member’s subsidy. He mentioned that this issue will be discussed at Pensions in the near future.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith addressed the LAFRA Holiday Trustee/Staff dinner and asked Trustees to RSVP back to Irma Mondragon regarding their attendance. He also mentioned that they have arranged a hotel room discount for those that wish to spend the night.
2) David Smith mentioned that the DISCO investment is being returned as its life is completed; the return received was excellent. He also mentioned that PIMCO management is starting to ask for capital calls on their new fund which is called BRAVO. We are in essence transferring funds from DISCO to BRAVO .
3) David Smith referred to the Loughran Estate and mentioned that the funds have been moved from the Loughran Merrill Lynch account to LAFRA’s Union Bank account. He indicated that they are in the process of doing a detailed accounting.
4) David Smith reported on the open enrollment for LAFRA and mentioned that we have 62 new members with 172 dependents. He indicated that approximately 10 members have left the LAFRA medical plan.
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 $906,870.81. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $906,870.81.
The committee recommends and I so move to pay the professional fees in the amount of $36,963.94. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $36,963.94.
Steinbacher indicated that it has been recommended to scan all old Grapevine issues and dispose of the old hard copies. He indicated that it was suggested that they send the old issues to the museum and/or give away to the members.
The committee recommends and I so move to approve up to $5,000 in seed money for the Buzzard Baits event. There was no discussion or objections.
Motion carried to approve up to $5,000 in seed money for the Buzzard Baits event.
MEDICAL COMMITTEE REPORT
Robert Steinbacher 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 $17,523.68
The Estate Planning benefit in the amount of $4,650,
The Life & Accident Withdrawals in the amount of $2,082
The Relief Death Benefits in the amount of $45,000
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Williard S. Atkins
Jerry L. Bjork
Richard C. Kimball
Jack H. Nowell
Paul J. Berokoff
Aubrey L. Monroe
August F. Oddo
Glenn V. Smith
Ferris F. Murdy
James Coburn read the names of members who recently passed and asked for a moment of silence from the Board.
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $5,263.48 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $5,263.48 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for October 2011
- MELANIE K. ALLEN IN HONOR OF THE LAFD CHAPLAINS
- LYNN D. ROGERS
- DELBERT C. THOMPSON IN MEMORY OF WILLARD S. ATKIN, CHARLES L. MULLER, RICHARD C. KIMBALL AND EVELYNE(GINGER)REED
- VERA TYLECEK PROCEEDS FROM YOUR DONATED CAR
- LOWMAN ELEMENTARY SCHOOL
- PAUL R. OLSON IN MEMORY OF WILLIARD ATKIN & GINGER REED
- ROGER RUDDICK IN MEMORY OF JOHN CASS
- MARSHA MEISSNER IN MEMORY OF OUR FATHER AUBREY LEE MONROE
- MARJORIE J. WILLIAMSON
- MICHAEL J. CASTILLO IN GRATITUDE FOR DAVID POWELL’S FLAG
- STEVEN VENTURA
- IDA L MCKIM IN MEMORY OF MARJORIE MCKIM
- JOHN J. CONN IN MEMORY OF RYAN QUAGLIANA, MARIANN JENKINS, LANCE PATTEN AND EVELYNE(GINGER)REED
- BETTY V. LARSON
- MR. & MRS. WILLIAM R. CHIDSEY, JR.
- JAMES L. STIGLICH IN MEMORY OF MERLE DELZELL
- BRUCE A. BICKLY PROCEEDS FROM MY RETIREMENT DINNER
- FIRE STATION NO. 5 FROM THE FIRE EXTINGUISHER FUND
- EARL G. WATZ IN MEMORY OF EVELYNE”GINGER”REED
- FIRE STATION NO. 75 FROM THE FIRE EXTINGUISHER FUND
- ROBERT C. BULLARD IN MEMORY OF CHIEKO TESTERMAN
- CHERYL J HEPBURN IN HONOR OF CAPT. JOHN E. CASS
- PATRICIA MURDY IN MEMORY OF MY HUSBAND FERRIS F. MURDY, JR.
- LEEANNE HILL
- JAMES E. GILLUM FROM THE “BREAKFAST GANG”
- JUAN CARLOS SANCHEZ
- FIRE STATION NO. 18 FROM THE FIRE EXTINGUISHER FUND
- LARRY SMITH IN MEMORY OF MARJORIE MCKIM
- VERNA V. IONATA IN MEMORY OF MERLE DELZELL
- MARY MINER IN MEMORY OF MARGE MCKIM
- DAVID RAYA IN MEMORY OF TIMOTHY JURE
- JOHN M. MC KINNEY IN MEMORY OF DAVE BAYLESS
- DAVID J. RAYA IN MEMORY OF ARLENE OLIVARI
- HELEN MEGORDEN
- EDWARD H. MC ADAM IN MEMORY OF AUBREY(LEE)MONROE
- JUNE J SMITH IN MEMORY OF EVELYN G. REED
- JOHN D. BADGETT
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.
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/WEBSITE COMMITTEE REPORT
Chris Hart mentioned that they are in the process of scanning all the old Grapevine magazines and placing them in the archives on the website. He also mentioned that have been discussing how they would operate the website in the future. He indicated that they are working towards having the LAFRA staff perform more of the work rather than contracting with a web company.
SCHOLARSHIP COMMITTEE REPORT
Doak Smith mentioned that Rick Godinez has offered to help with the Scholarship program for 2012. He mentioned that there has been confusion between the LAFRA Scholarship Program and the LAFD City Scholarship. He indicated that he spoke to Juan Carlos in the Grapevine department about remedying the situation and how the LAFRA Scholarship program is advertised.
Andy Kuljis reported that the Trustee elections are going to be a white ballot this year and indicated that there was only one candidate for the Battalion 6 Trustee position. He asked the Trustees to encourage members to vote for the by-law changes.
SETTING OF DATES
1) LAFRA Open House – November 5th
2) LAFRA Trustee/Staff Holiday Dinner – December 8th
1) Bob Turner – November 5th & 6th Hyatt Regency Valencia (Marino)
2) John Buck – December 5th Ports O’Call Restaurant (Kuljis?)
John Jacobsen entertained a motion to adjourn. Gary Matsubara so moved. Jeff Cawdrey seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 11:46am.
John Jacobsen, President