MINUTES OF THE BOARD OF TRUSTEES
December 4, 2008
CALL TO ORDER
President David Marino called the meeting of the Board of Trustees of the Los Angeles Firemen’s Relief Association to order at 9:50 a.m.
ROLL CALL
MEMBERS PRESENT:
- David Marino, President
- Robert Steinbacher, Vice President
- Andrew Kuljis, Secretary-Treasurer
- Trustee James Coburn – Battalion 1
- Trustee Gene Bednarchik – Battalion 2
- Trustee Juan Albarran, Battalion 3
- Trustee Chris Hart – Battalion 4
- Trustee Tim Larson – Battalion 6
- Trustee Gary Matsubara – Battalion 7
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee Chris Stine – Battalion 11
- Trustee John Jacobsen – Battalion 13
- Trustee Glen Prine – Battalion 15
- Trustee Francisco Hernandez – Battalion 17
- Trustee Dennis Mendenhall – Battalion 18
- Trustee Kurt Stabel – Headquarters 2
- Trustee Warren Braun – Pension 1
- Trustee Tom Stires – Pension 2
- Trustee Robert Henderson – Pension 3
- Executive Director – David Ned Smith
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Mark Akahoshi, Battalion 5 (Excused)
- Trustee Michael Overholser – Battalion 14 (Excused)
- Trustee David Ortiz – Headquarters 1 (Excused)
INVOCATION
Trustee Warren Braun led the invocation.
RATIFICATIONS OF MINUTES
David Marino entertained a motion to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held November 6, 2008. Warren Braun so moved. Tim Larson 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 November 6, 2008.
RATIFICATION OF ELECTION
David Marino informed the Board that David Lowe and Robert Henderson had won the Pension positions. Both of these gentlemen were elected by more than 50 percent of the votes cast. David Marino stated that there were three candidates running for the Pension 1 position and David Lowe won with 53%. He also stated that all the By-law changes had passed with 85% or more on every by-law submitted for election. David Marino entertained a motion to ratify the results of the election. Gene Bednarchik so moved. Gary Matsubara seconded the motion. There was no discussion or objections.
Motion carried to ratify the results of the election.
ADMINISTRATIVE COMMITTEE REPORT
Chairman David Peters referred to a tabled issue from October’s Board meeting regarding Robert Henderson’s submitted Trustee Expense Voucher. He recalled the discussions held at the Administrative Committee and Board regarding the Trustee Expense Voucher submitted regarding attending the Hope for Firefighters event.
He addressed Robert Henderson directly and informed him that the following action was recommended.
Suspension of Trustee Bob Henderson. You are hereby suspended as a Board Member, from the Board of Trustees of the Los Angeles Firemen’s Relief Association, effective immediately and for the next 30 calendar days. All privileges of a Trustee shall therefore and forthwith be denied. This action taken by the Board of Trustees is for the following documented actions:
In early July 2008, you submitted a signed request for expense reimbursement for mileage for June 5, 2008. The justification for the mileage was stated in writing as working on the “Hope for Firefighters” event. After an investigation, no one was aware that you worked on this event so you were asked to substantiate the justification for mileage reimbursement in writing. This request was made after multiple attempts to discuss and resolve this issue at the lowest possible level, but your continued contempt toward the Administrative Committees investigation caused the Board to be notified and take action. You refused to answer the question in person and were sent certified letters directing you to respond. One of your written responses restated that Hope for Firefighters was your justification. Again, the investigation proved this was not true. On October 9, 2008, you stated to the Board that “it was a mistake” and wrote down the incorrect purpose for the mileage request. You stated you drove to the Association facility on June 5, 2008 because you thought it was a Board meeting day. The Board denied the requested reimbursement.
It is the Board’s conclusion that you, Trustee Henderson lied to the Board in writing on your expense reimbursement form as to the justification of a reimbursement and you refused to respond to the Administrative Committee and the Board in a timely and forthright manner when questioned about the accuracy of this justification. It is the Board’s conclusion that this action is “conduct unbecoming to a member of the Board and the Association”. The Board condemns this action and puts you, Trustee Henderson on notice that any future inappropriate action may result in being expelled from the Association.
David Marino asked if there was a motion to accept the Suspension of the Trustee. Gary Matsubara motioned to accept the Suspension of Trustee. Chris Hart seconded the motion.
On the discussion, David Marino informed Robert Henderson that he was not suspended from the Association, but was having his Trustee privileges suspended for 30 calendar days. On the question, there was an objection. Robert Henderson stated that he contacted the Administrative Committee Chairman the next day after receiving the certified letter. He indicated he was told by the Committee Chairman that they had never approved nor paid the expense. He also indicated there was another certified letter sent from the President and stated that this situation has occurred many times in the past. He stated that he was not aware as to why the Board is assessing damage when nothing was paid. He questioned the Board on how they could suspend anyone for something that was not paid.
David Peters responded that he had asked Henderson at one time to explain to the Administrative Committee the action regarding the submitted Expense form. He stated that Henderson told him that he would not explain to the Admin Committee and that he was “weird”. He stated “likewise any member who shall claim or receive benefits of the Association when not entitled thereto, shall be guilty of conduct unbecoming to a member and may with or without notice, be suspended from membership and benefits by majority vote of the Board upon such terms and for such period of time as may be fixed by the Board or until reinstated by the membership.” Chris Stine referred to the Trustee Expense Voucher where it states “I hereby certify that expenses detailed on this voucher are proper and actual expenses I incurred on behalf of the Los Angeles Relief Association” He stated that the matter isn’t that it was paid or not, but the attempt to deceive the Association.
David Peters called for a roll-call vote.
Battalion 1 – No Battalion 11 – Yes Pension 2 – Yes
Battalion 2 – Yes Battalion 13 – Yes Vice President – Yes
Battalion 3 – Yes Battalion 14 – Excused
Battalion 4 – Yes Battalion 15 – No
Battalion 5 – Excused Battalion 17 – Yes
Battalion 6 – No Battalion 18 – No
Battalion 7 – Yes HQ 1 – Excused
Battalion 9 – Yes HQ 2 – No
Battalion 10 – Yes Pension 1 – No
Vote result: 11 Yes, 6 No
Motion carried to accept the Suspension of Trustee.
Administrative Committee continued
David Peters presented the following motions.
The committee recommends and I so move to approve the usual and customary bills in the amount of $864,066.30. There was no discussion or objections.
Motion carried to approve the usual and customary bills in the amount of $864,066.30.
The committee recommends and I so move to pay the professional fees in the amount of $30,694.77. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $30,694.77.
The committee recommends and I so move to approve $5,000 of seed money for the Buzzard Bait Family Fun Ride. There was no discussion or objections.
Motion carried to approve $5,000 of seed money for the Buzzard Bait Family Fun Ride.
EXECUTIVE DIRECTOR REPORT
1) David Smith informed the Board that that they have applied and were approved for non-profit status on e-bay which means no fees. He indicated that they will place many of the 25 donated Sprite Premier night tickets on e-bay for auction. Two sets of four of the tickets will be used as silent auction items at the Holiday Dance. He also stated that this will be a new way to place items for auction to a broader audience with the potential of obtaining more revenue for WODFF.
2) David Smith presented a status report on the web design and walked the Board through a flow diagram of the proposed system and indicated that there were many facets in building a good website. He mentioned that there are many ways of taking advantage of the technology including credit card processing, POS system and inventory for the store. He also indicated that they want to be able to accept donations in any amount on the website and produce an immediate IRS compliant receipt and thank-you letter for the donor’s tax deduction. He mentioned that they’ve spent a lot of time studying how to publish the Grapevine on the web. He stated that they want to make a digital version of the Grapevine available which would also increase opportunity to go after new types of advertisers. He indicated that they will have the ability to view video on the website from a direct link to YouTube. The advantage of this approach is the saving from using a third parties’ software. He also mentioned that there will be a “members only” area on the website for personal calendar and sharing stories and photos. He stated that the key was to attract people to the website on a frequent basis. He asked the Trustees to submit their input to Marlene, Bob Dillon or himself.
He referred to the RFP and indicated that the Board has approved to contract with Ciplex or Tridian.
3) Todd Layfer indicated they were in the process of putting together the annual operating budget. He stated that their goal was to present the budget at the January 2009 Board meeting. He informed that they have done a line by line review of actual expenditures for 2008 and will use it as a baseline for next year’s budget. He mentioned that they have taken into consideration one time costs related to the move which will be removed and costs related to the new website design. He indicated that they have sought the Managers input. He mentioned that the medical consultant, Dawna Gray would provide input on the medical aspect and determine costs and premiums from claims history and plan enhancements for 2009.
INVESTMENT COMMITTEE REPORT
Chairman Kurt Stabel addressed the Board and indicated that the financial markets have had a major correction culminating at the end of October early November. He indicated that this was related to increased stress on the financial system due to a lack of liquidity and lack of confidence in most financial markets. Mortgage Backed Securities (MBS) which had previously experienced price appreciation had been whipsawed due to the FED wavering back and forth regarding their support of assets in this subset of the market. The FED has now returned to the MBS market, actively buying assets, which will support our investment in PIMCO’s private equity vehicle that is buying securities in this area. Further, the FED and Treasury have expanded areas of the market that will be supported by the “TARP” (Troubled Asset Relief Program) which should begin to thaw frozen credit markets, reduce spreads and begin to rebuild confidence in financial markets.
He referred to the long term outlook and stated that the FED was actively buying 30-year treasuries and commercial paper which will pump money in the economy (and help to stabilize bank balance sheets) which should help to push down long-term interest rates. He indicated that the long term effect of this policy is currently unknown and that many market strategists have raised concerns that once the economy has stabilized (the end date of this event is unknown) we may be facing a period of long-lasting inflation. The committee will continue to monitor new developments in the economy and financial markets and align our portfolio accordingly.
VICE PRESIDENT’S REPORT
1) Robert Steinbacher informed the Board of the upcoming conferences for 2009. He asked the Board to review the dates and let him know which if any, they planned to attend.
MEDICAL COMMITTEE REPORT
David Peters presented the following motions.
The committee recommends and I so move to accept the applications from Open Enrollment, Rookies and Associate Members to the Medical Plan. There was no discussion and no objections.
Motion carried to accept the applications from Open Enrollment, Rookies and Associate Members to the Medical Plan.
David Peters informed the Board that the Medical Committee has approved an expanded Durable Medical Equipment list. He indicated that the list was very extensive and applies to only those members on the medical plan and does not affect the Relief Committee’s DME list which applies to Relief members who are not in the medical plan.
Chris Hart indicated that Heather Leavitt was working on a booklet of items for Trustees to have when addressing members’ questions. He also asked that Trustees remind members of the new I.D. cards.
RELIEF COMMITTEE REPORT
Chairman James Coburn presented the following motions.
The committee recommends and I so move to pay the Sick and Injury benefits for active and retired members in the amount of $52,255.39. There was no discussion or objections.
Motion carried to pay the Sick and Injury benefits in the amount of $52,255.39.
The committee recommends and I so move to pay the Estate Planning benefits in the amount of $4,772.01. There was no discussion or objections.
Motion carried to pay the Estate Planning benefits in the amount of $4,772.01.
The committee recommends and I so move to pay the Relief Death benefits in the amount of $27,000. There was no discussion or objections.
Motion carried to pay the Relief Death benefits in the amount of $27,000.
The committee recommends and I so move to pay the Life & Accident Death benefits in the amount of $6,249.33. There was no discussion or objections.
Motion carried to pay the Life & Accident Death benefits in the amount of $6,249.33.
The committee recommends and I so move to pay the Life & Accident withdrawals in the amount of $5,018. There was no discussion or objections.
Motion carried to pay the Life & Accident withdrawals in the amount of $5,018.
MEMORIALS
Leonard Peterson
J. Slade Delaney
William B. Howell
Richard C. Ross
Randy K. Wilson
Harold K. Bordner
ASSISTANCE COMMITTEE
Chairman James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $11,149 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $11,149 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for November 2008
- JASON TORREY-PAYNE
- LEONARD D. LERNER IN GRATITUDE TO THE FIRE FIGHTER’S OF STATION 112 & 114 WHO PROVIDED US A GUIDED TOUR OF THEIR FIRE
- CHRIS WALDHEIM IN MEMORY OF RANDY WILSON FROM FIRE STATION 74C
- SHIRLEY ROOK IN APPRECIATION FOR ALL THE WORK THE RELIEF HAS DONE FOR MYSELF AND MY HUSBAND RALPH WHEN HE WAS ALI
- FENG ZHANG
- KAREN BAYLE IN APPRECIATION FOR THE FIRE FAMILY BENEFITS OF L.A.F.R.A.
- GARY G. HOOD CITY SHUTTLE SCOOTER
- CAROL EATON IN MEMORY OF JIM FRANCIS
- WOODLAND HILLS WOMANS CLUB INC IN HONOR OF FIRE STATION 84
- DONNA FRANCIS IN MEMORY OF MY HUSBAND CAPTAIN JAMES W. FRANCIS
- ANNE M MATHEUS IN MEMORY OF MY DEAR HUSBAND TOM MATHEUS
- DANNY LEON IN MEMORY OF TOM DOWLING
- KIRK F BASORE IN MEMORY OF MY L.A.F.D. FRIENDS THAT PASSED AWAY IN 2008
- LISA HACKNER IN MEMORY OF ROBERT G. LEFF
- EDWARD M HOLLAND IN MEMORY OF EARL GIBBS, PEARL BURRAGE AND BILLIE BORGMAN
- DANIEL J KEMP IN MEMORY OF HAROLD BORDNER
- FRANCES ISAACS IN MEMORY OF MY SON-IN-LAW JIM FRANCIS
- SUSAN CHIN FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- BRIAN WHITE FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- IRYNA ZALOZNA FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- CURTIS HARMAN FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- ARUNA VASHISTHA FOR THE FIREFIGHTER WORK DURING THE SESNON AND PORTER RANCH FIRES
- VINCENT BUENROSTRO FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- KEVIN F GALLIVAN FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- BARBARA MEDOVOY FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- ROMA L MIGUEL FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- ERIC ROSENBERG FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- SOO K LEE FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- ARGELIA ATILANO FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- MARY JOANN SHEERIN IN MEMORY OF HAROLD (HAL) BORDNER
- JAMES F PERSON IN MEMORY OF GROVER L. THOMAS
- LEONARD W CARACCIO IN MEMORY OF HAL BORDNER
- JACKIE KORMAN IN GRATITUDE FOR ALL OUR ASSISTANCE
- EDWARD G SUGAR IN GRATITUDE TO THE “BRAVE” FIREFIGHTERS WHO SAVED OUR HOME IN THE RECENT FIRES
- LAURA J. QUICK IN HONOR OF MY “LITTLE BUDDY” COREY CAPECE
- VERA C CATLOW IN LOVING MEMORY OF MY HUSBAND JOHN CATLOW, HIS BROTHER JIM AND MY BROTHER GUY COOK
- PEGGY LOHR
- WILLIAM HENCKE IN HONOR OF CARMEN RODRIGUEZ
- DONALD HIBBARD IN MEMORY OF GROVER THOMAS
- WILLIAM R COOPER IN GRATITUDE FOR THE DURABLE MEDICAL EQUIPMENT PROVIDED TO MY WIFE
- LOYETTA A. CHANDLER IN MEMORY OF JAMES FRANCIS RETIRED CAPTAIN L.A. HARBOR DIVISION
- REKHA R PATEL FOR THE FIREFIGHTERS WORK DURING THE SESNON AND PORTER RANCH FIRES
- CHARLYN A PAINE IN MEMORY OF MY HUSBAND FLOYD D. PAINE
- LYDIA REED IN MEMORY OF WORTH J. WELCH AND JAMES A. JUST
- FREDERICK E MARTIN IN MEMORY OF GROVER THOMAS
- ANNA DAVIS IN MEMORY OF J. SLADE DELANEY
- EVANNE SCHNEIDER
- FIRE STATION NO. 85 FIRE EXTINGUISHER FUND
- MARIE D SHAFER
- CATHERINE M NAEGLE IN MEMORY OF BETTY DOWNEN
- JOANNE KEROPIAN
- STEVEN SLATE IN MEMORY OF RANDY WILSON
- PAOLO SASSO
The committee recommends and I so move to assist:
widow with $500 per month with a six month review
widow with $1,500 per month with a six month review
widow with medical premiums with a six month review
widow with $500 per month with a six month review
member with medical premiums with a six month review
widow with medical premiums with a six month review
member with $450 for DME
retired member by discharging payoff for emergency advancement $4,458.28
member with $700 per month with a six month review
member with $14,200 to pay off an emergency advancement
member with $300 per month with a three month
member with $2,472 per month with a six month review for dependents therapy
member with $837.21 per month with a six month review for medical subsidy
There was no discussion or objections.
Motion carried to approve assistance as stated.
EMERGENCY ADVANCEMENTS
James Coburn presented the following motions.
The committee recommends and I so move to advance:
member $2,700 for mortgage payment
member $8,000 for funeral expenses
member $4,900 for moving expenses
retired member $7,037.59 for funeral expenses
reversed mortgage for a widow at $2,880 per month with a six month review
reversed mortgage for a widow at $2,000 per month with a six month review
There was no discussion or objections.
Motion carried to approve emergency advancements as stated.
AUDIT COMMITTEE REPORT
Chairman Doak Smith reported that there were no status changes on the audit committee.
BY-LAWS COMMITTEE REPORT
Chairman Warren Braun informed the Board again that the proposed By-law changes passed by minimum approval of 85% for each by-law revision. He stressed the importance of continuing to review the By-laws and reflecting the Policy manual accordingly.
David Smith informed that they have accepted the changes to the By-laws and indicated that they would add the date of the significant changes. He stated that he would send the By-laws to attorney Ridley for legal review and then publish on the website.
GRAPEVINE COMMITTEE REPORT
Chairman Chris Hart informed the Board that the Marketing and Grapevine Department have obtained three new ads. He mentioned that all three were full-page ads for a one-year run. He provided an update with the Web Designer position and indicated that they would keep the Board posted.
SECRETARY REPORT
Andrew Kuljis reported the results of the election.
Pension 1 David Lowe 712 votes – 53.8%
Ralph Brownell 489 votes – 36.9%
Howard Kaplan 122 votes – 9.2%
Pension 3 Robert Henderson 775 votes – 57.7%
Warren Braun 566 votes – 42.2%
By-Laws All the By-Law revisions passed with a range of 85% to 95%.
He stated that of all the ballots mailed to the membership 1,911 were returned.
SETTING DATES
1) Holiday Hoorah – December 13th Biltmore Hotel
RETIREMENT DINNERS
1) Glen Prine – December 4th Ports O Call Restaurant (Marino)
2) Stanley Thomas – December 15th Fire Station 92 Luncheon (Kuljis)
3) Chuck Mills – January 7, 2009 LAPD Academy (Stires)
4) Jan Bernard – January 10th Valencia Summit Clubhouse (Marino)
ADJOURNMENT
David Marino entertained a motion to adjourn. David Peters motioned to adjourn in the memory of Trustee William A. Dunn. Warren Braun seconded the motion. There was no discussion and no objections.
Motion carried to adjourn in the memory of Trustee William A. Dunn. The Board of Trustees meeting adjourned at 11:03am.
David Marino, President