MINUTES OF THE BOARD OF TRUSTEES
October 2, 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 10:27 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 Steve Tufts
- Trustee Chris Stine
- Trustee Craig White
- Trustee Steve Ruda
- Trustee Francisco Hernandez
- Trustee Mark Akahoshi
- Trustee Steve Berkery
- Trustee Barry Hedberg – Pension
- Trustee David Lowe – Pension
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Michael Overholser (Excused)
- Trustee Gene Bednarchik (Excused)
- Trustee Chris Hart (Excused)
- Trustee Rick Godinez (Excused)
- Trustee Tim Larson – Pension (Excused)
GUESTS:
- David Wagner, Grapevine Editor
- Lee Kebler, L.A. Retired Fire & Police
- Bob Olsen, L.A. Retired Fired & Police
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 September 4, 2013. David Lowe so moved. Craig White 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 September 4, 2013.
PRESIDENT REPORT
1) John Jacobsen informed the Board that they will present a plaque to Monica Garcia for her ten years of service to the L.A. Firemen’s Relief Assoc. He thanked her for her hard work and dedication to the LAFRA members.
2) Jacobsen informed the Board that Executive Director, David Smith has given his notice and will be retiring from LAFRA in 60 days. He indicated that David Smith has also agreed to come back part-time to help with the transition of the move and to find a replacement for his position.
3) Jacobsen mentioned that Rick Godinez and Steve Berkery attended the Colorado Springs Memorial. Steve Berkery indicated that it was a great opportunity to attend this event and represent Dee Santos, with the help of Melanie Allen. He stated that the whole event was outstanding and indicated that it was truly an honor to represent the LAFD.
4) Jacobsen referred to the Pension Dept. meeting scheduled for tomorrow and indicated that they will discuss recommendations for members that live out of the country and how it relates to Medicare and their subsidy. He indicated that he will report back to the Board after the meeting.
VICE PRESIDENT REPORT
1) Juan Albarran stated that they have dates set for the Pechanga LAFRA Reunion in May 2014. He indicated that it will be one week before the last reunion.
BUILDING COMMITTEE REPORT
David Smith reported that they had sent out the RFPs last week to five architects. He stated that they are due back by next week and indicated that they will work with the project manager to narrow them down to two or three for the interviewing process.
INVESTMENT REPORT
Robert Steinbacher mentioned that he and Jacobsen had visited Wedgewood in St. Louis and indicated that they were satisfied with their infrastructure and location. He reported that we are currently going through the process of closing the position with Cohen & Steers and complete the reallocation to Wedgewood.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith reported on the Golf Tournament and indicated that it was a success and collected $125K in gross income. He stated that after expenses, they are looking at $82K net income.
2) David Smith mentioned that they had made the employee medical plan open enrollment somewhat more formal than previous periods. He indicated that they used the same material for employees that they send to the membership and it was mailed to their homes.
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 $995,869.07. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $995,869.07.
The committee recommends and I so move to pay the professional fees in the amount of $138,709.20. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $138,709.20.
The committee recommends and I so move to donate up to $300 to the LAFD Leadership Academy for their ceremony refreshments. There was no discussion or objections.
Motion carried to donate up to $300 to the LAFD Leadership Academy for their ceremony refreshments.
MEDICAL COMMITTEE REPORT
Barry Hedberg 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.
Jacobsen referred to the proposed Express Scripts formulary change and stated that it will exclude 48 brand name drugs that they will no longer offer. He stated that the option for LAFRA is to accept this change or opt out. He stated that if we opt out, it will cost LAFRA about $300K in rebates and if they opt in, it will give LAFRA around $400K in addition to the existing rebates. He indicated that the committee has discussed and identified that there will be member disruption. He stated that there will be about 600 people affected. He indicated that some members should have no issues of changing to alternative drugs and others may have concerns. Barry Hedberg indicated that this will affect all companies contracting with Express Scripts and does not only include LAFRA. Jacobsen also mentioned that this formulary change will begin January 1, 2014 and stated that letters will be sent to members and providers prior to this date.
The committee recommends and I so move to opt into the Express Scripts formulary change with the option to opt out if necessary. There was no discussion or objections.
Motion carried to opt in to the Express Scripts Formulary change with the option to opt out if necessary.
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 $16,185.60,
The Estate Planning benefit in the amount of $8,275,
The Life & Accident Death Benefits of $12,000,
The Life & Accident Withdrawals of $2,495,
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
Pasquale J. Buono
Larry D. Munden
Joseph L. Young
Frank S. Gorman
James E. Kemp
Ramon F. Haro
Thomas W. Johnson
ASSISTANCE COMMITTEE
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $4,293.26 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
1) David Wagner asked if the Board had selected a person or group to honor at this year’s LAFRA Open House event.
Barry Hedberg motioned to nominate Lee Kebler as the LAFRA Honoree for the Open House event. Robert Steinbacher seconded. There was no discussion or objections.
Motion carried to honor Lee Kebler at the LAFRA Open House event.
2) David Wagner indicated that they need Battalion News writers and asked Trustees to ask around and let him know if anyone is interested in writing.
SECRETARY’S REPORT
Andy Kuljis reported that they have attended many funerals lately. He also stated that he has gotten a great response from the article he has written in the Grapevine.
SETTING OF DATES
1) California Firefighters Memorial, Sacramento – October 5th
2) LAFD Fallen Firefighter Memorial – October 12th
3) LAFD Car Show – October 13th
4) IFEBP Annual Conference – October 20th – 23rd
5) LAFRA Open House – December 7th
RETIREMENT DINNERS
1) Dennis Waters – October 25th Odyssey Restaurant
2) David Yamahata – October 26th Japanese American National Museum
3) Joe Foley – November 30th TBD
ADJOURNMENT
John Jacobsen entertained a motion to adjourn. David Peters so moved. Craig White seconded. There was no discussion and no objections.
Motion carried to adjourn. The Board of Trustees meeting adjourned at 11:38 pm.
John Jacobsen, President
