MINUTES OF THE BOARD OF TRUSTEES
November 6, 2013
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 10:30 a.m.
ROLL CALL
MEMBERS PRESENT:
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn
- Trustee Robert Steinbacher
- Trustee Doak Smith
- Trustee Steven Domanski
- Trustee Jeff Cawdrey
- Trustee David Ortiz
- Trustee David Peters
- Trustee Gene Bednarchik
- Trustee Rick Godinez
- Trustee Chris Stine
- Trustee Craig White
- Trustee Chris Hart
- Trustee Steve Ruda
- Trustee Francisco Hernandez
- Trustee Mark Akahoshi
- Trustee Steve Berkery
- Trustee Tim Larson – Pension
- Trustee David Lowe – Pension
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Michael Overholser (Excused)
- Trustee Barry Hedberg – Pension
- Trustee Steve Tufts (Excused)
GUESTS:
- David Wagner, Grapevine Editor
- Dennis Mendenhall, Retired
- Lee Kebler, L.A. Retired Fire & Police
- Bob Olsen, L.A. Retired Fired & Police
- Tom Stires, Retired
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 October 2, 2013. David Lowe so moved. Jeff Cawdrey 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 October 2, 2013.
INVESTMENT REPORT
Mike Breller from Beacon Pointe Advisors provided the investment report for the 3rd quarter 2013. He reviewed the market returns and performance for both U.S. and International markets. He stated that the portfolio is performing very well. He referred to the portfolio allocation and indicated that in August, the Board confirmed new targets within the ranges. He stated that they have increased the total Alternatives section by 2% and decreased from International Equity. He indicated that the Titan Masters Fund will be closing to new investments because they do not want too many assets that may affect their investment strategies. He indicated with this anticipation, they suggest that LAFRA pre-fund Titan before they close with an additional $1 million.
Robert Steinbacher made the following motion.
The committee recommends and I so move to transfer an additional $1 million to the Titan Masters Fund before December 1st from the Artisan International fund. There was no discussion or objections.
Motion carried to transfer an additional $1 million from the Artisan International fund to the Titan Masters Fund.
PRESIDENT REPORT
1) Jacobsen indicated that he sent the Express Script’s formulary change to the LAFRA staff and Trustees for their review and to help them answer questions from members. He mentioned that he has received a few calls but has not seen much disruption to the membership. He also indicated that there have been issues concerning workers comp. medications and members trying to get them filled with multiple Express Script cards. The City is now providing Express Script’s card for workers comp medications which creates member confusion with our PPO Medical Plan Express Scripts card.
2) Jacobsen stated that per the By-laws, there will be a dues increase effective January 1, 2014. He stated that this increase is tied to the wage increase that active firemen are receiving from the City. The amount includes the July 2013 one percent increase and the November one percent increase.
3) Jacobsen mentioned that the Marketing Department has produced an instructional video for flag raising ceremonies. He indicated that the video is easy to follow and stated that they have done a good job. He also mentioned that the video will be available by link on the LAFRA website and he will provide Trustees with a DVD copy.
VICE PRESIDENT REPORT
1) Juan Albarran reported on the IFEBP Conference that several Trustees attended in Las Vegas and mentioned that they spent time listening to different speakers on investment strategies and rebalancing portfolios as well as other issues related to LAFRA.
BUILDING COMMITTEE REPORT
Steve Domanski reported that the Building Committee met with the architect companies selected for the interview process. He stated that they have chosen Ware Malcomb Architects for their capabilities for the building project. He indicated that the Project Manager negotiated a contract price of approximately $86K. He presented the following motion.
The committee recommends and I so move to contract with Ware Malcomb Architects as the LAFRA design firm. There was no discussion or objections.
Motion carried to contract with Ware Malcomb Architects as LAFRA’s design firm.
Jacobsen indicated that they tentatively scheduled a first phase meeting with the architects on Tuesday, November 12th to begin evaluating our needs and wants.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith referred to the new building operations and indicated that they have had a couple of minor issues with tenants and their leases. He indicated that they are working through them and are negotiating.
2) David Smith reported that the new LAFRA.org site should be up and running by Friday evening. He stated that all content has been migrated over to the new site.
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 $1,700,357.32. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $1,700,357.32.
The committee recommends and I so move to pay the professional fees in the amount of $112,795.89. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $112,795.89.
The committee recommends and I so move to enter into contract with Ware Malcomb Architects for $86K plus reimbursable expenses. There was no discussion or objections.
Motion carried to contract with Ware Malcomb Architects at $86K plus reimbursable expenses.
MEDICAL COMMITTEE REPORT
Jeff Cawdrey 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 set the federally mandated member out-of-pocket expense for medical PPO claims at $6,350 beginning January 1, 2014. There was no discussion or objections.
Motion carried to set the federally mandated member out-of-pocket expense for medical PPO claims at $6,350 beginning January 1, 2014.
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 $16,553.20,
The Estate Planning benefit in the amount of $6,225,
The Life & Accident Death Benefits of $48,000,
The Relief Death Benefits in the amount of $67,500.
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
Howard L. Gellinck
Edward L. Castle
Frank R. Lunn
Mathew G. McKnight
Mario Martinez
Ronald J. MacKinnon
David E. Heryford
Hans R. Wolf
Robert C. Orman
Monte M. Vance
James L. Choner
Paul A. Parish, Jr.
Harry G. Stanton
Charles F. Breazeal
Laurence C. Romer
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $4,145.15 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $4,293.26 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 reported that the new Mac computers for the Grapevine department are up and running. He mentioned that they will sell the other old Mac computers on Craig’s List and one will be used by Jody Houser.
SECRETARY’S REPORT
Andy Kuljis reported that the elections were running on schedule and indicated that they received a few undeliverable ballots back due to address changes. He indicated that they will schedule a date for processing the ballots and asked for volunteers to help.
SETTING OF DATES
1) El Coyote Salsa event – November 19th
2) LAFRA Open House – December 7th
3) Hook & Ladder Enduro – March 22nd.
RETIREMENT DINNERS
1) Dale Farnes – November 19th Rancho Vista Golf Club
2) Joe Foley – November 30th Warner Center Marriott
3) John Durso – January 18th The Odyssey
EXECUTIVE SESSION
The Board entered into Executive Session at 11:55am.
The Board adjourned from Executive Session at 12:11pm.
David Lowe motioned to approve the actions discussed in Executive Session. Craig White seconded. There was no discussion or objections.
Motion carried to approve the actions discussed in Executive Session.
ADJOURNMENT
John Jacobsen entertained a motion to adjourn. Tim Larson moved. Craig White seconded. There was no discussion and no objections.
Motion carried to adjourn. The Board of Trustees meeting adjourned at 12:12 pm.
John Jacobsen, President