MINUTES OF THE BOARD OF TRUSTEES
April 2, 2009
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 10:28 a.m.
- David Marino, President
- Robert Steinbacher, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn – Battalion 1
- Trustee Juan Albarran, Battalion 3
- Trustee Mark Akahoshi, Battalion 5
- Trustee Tim Larson – Battalion 6
- Trustee Gene Bednarchik – Battalion 7
- Trustee Doak Smith – Battalion 9
- Trustee Gary Matsubara – Battalion 11
- Trustee Craig White – Battalion 12
- Trustee Chris Stine – Battalion 13
- Trustee Michael Overholser – Battalion 14
- Trustee Francisco Hernandez – Battalion 17
- Trustee Dennis Mendenhall – Battalion 18
- Trustee Kurt Stabel – Headquarters 2
- Trustee David Lowe – Pension 1
- Trustee Tom Stires – Pension 2
- David Ned Smith – Executive Director
- Controller – Todd Layfer
- Trustee Chris Hart – Battalion 4 (Excused)
- Trustee David Peters – Battalion 10 (Excused)
- Trustee John Jacobsen – Battalion 2 (Excused)
- Trustee Steven Domanski – Battalion 15 (Excused)
- Trustee David Ortiz – Headquarters 1 (Excused)
- Warren Braun
Warren Braun led the invocation.
In-Person Member Appeal
Tim Larson informed that a member was present to address the Board for an appeal. The member has been applying for advancements which have been granted. Tim Larson stated that the member is appealing to the Board for an advancement of $22,000 which would be added to the $26,000 already advanced. The member was informed that he would be notified of the Board’s decision within the next few days.
James Coburn informed that the member has exceeded the maximum amount that the Relief Committee was allowed to approve without the Board’s consent. He stated that the member is asking for an extension of three months of advancement payments.
Dennis Mendenhall motioned to approve the member’s request for an additional three months of advancements. Gene Bednarchik seconded the motion. On the question, there were objections. Thirteen voted in favor of the motion, three voted opposed. There was no further discussion.
Motion carried to approve the member’s request and provide an additional three months of advancement payments.
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 March 5, 2009. David Lowe so moved. Gary Matsubara 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 March 5, 2009.
RELIEF COMMITTEE REPORT
Chairman James Coburn presented the following motion.
The committee recommends and I so move to pay:
Sick and Injury benefits for active and retired members in the amount of $13,109.61,
Estate Planning benefits in the amount of $2,578.28,
Relief Death benefits in the amount of $45,000,
Life & Accident withdrawals in the amount of $2,082.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Gerald B. Richardson
James T. Magruder
Richard C. Anderson
Roy A. Walters
Ned W. Shafer
Wilburt W. Young
James W. Kalp
Robert E. Henderson
William R. Blair
Kenneth E. Padgham
James Coburn read the names of members who recently passed and asked for a moment of silence from the Board.
Chairman James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $45,943.03 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $45,943.03 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for March 2009
- STAKER LAW TAX AND ESTATE PLANNING LAW CORPORATION
- THE AMERICAN LEGION POST NO. 43
- EVALYN MOSSER
- RICHARD E. FOX IN MEMORY OF JOHN LAWRENCE
- WAYNE E. HUDDLESTON IN GRATITUDE TO THE FS-43C FOR SAVING OUR SON MARK’S LIFE IN 2007
- EVELYN L MORRISSETTE IN MEMORY OF MY HUSBAND BILL MORRISSETTE
- ED TURNER IN MEMORY OF ROY ALVIN WALTERS
- MARK EGERMAN IN GRATITUDE TO FIRE STATION 108 AND FIREFIGHTERS MIKE GUZMAN & FERNANDO LINARES
- VALERIE BARNES-CLARK IN MEMORY OF ROBERT HENDERSON
- DANIEL J. KEMP IN MEMORY OF ROY WALTERS & JOE SCHALLER
- WASHINGTON MUTUAL EMPLOYEE GIVING PROGRAM
- RICHARD SMITH IN MEMORY OF NOREEN HENDERSON
- BETTY V. LARSON
- ROBERT P. LUTZ IN MEMORY OF DUB NIELSON & HAL BORDNER
- ANONYMOUS DONATION IN MEMORY OF DALE BOOTH
- JOHNITA L. WALTERS IN MEMORY OF CAPTAIN II ROY A. WALTERS
- DENNIS L. MENDENHALL IN MEMORY OF ROY WALTERS
- WOODLAND HILLS SCHOOL/PARENTS ASSOC. GROUP, INC. IN HONOR OF ENG. SCOTT TANNER & FS-105
- CHARLOTTE F ANDREWS
- DONALD PAONE FROM THE BUZZARD BAITS ANNUAL RIDE
- CHARLOTTE F. ANDREWS IN MEMORY OF DICK DENNING
- JACK BENNETT IN MEMORY OF BILL BLAIR
- MAURICE M. WEAVER IN MEMORY OF BETTY JANE WEAVER
- JAMES D. ROSS IN MEMORY OF JOE SCHALLER
- DENNIS L. COVILLE IN MEMORY OF LINDA DEFEO
- IRENE E. HASKIN IN MEMORY OF ROY WALTERS
- CAROLYN R. WEIR IN MEMORY OF SYKA JOYCE PICKEREL
- CHARLOTTE F. ANDREWS IN MEMORY OF ROY WALTERS
- MARJORIE J. WILLIAMSON
- PHILIP V. TOPPENBERG IN MEMORY OF CLYDE STIMSON
- MARIE D. SHAFER
- HELEN D. DAY IN MEMORY OF ROY ALVIN WALTERS
- OLIVER T. MARTIN IN MEMORY OF OUR FRIEND GERALD B. RICHARDSON
- ED TURNER IN MEMORY OF ROY A. WALTERS FROM THE “TRIBE”
- ROBERT COMETTA IN MEMORY OF ROY A. WALTERS
- GERRY E MCCLANAHAN IN MEMORY OF HAROLD K. BORDNER
- GERRY E MCCLANAHAN IN MEMORY OF EARL D. GIBBS
- ROBERT VANDERHAGEN IN MEMORY OF HAL BORDNER
- BILLIE J. BRUBAKER IN MEMORY OF BETTY WEAVER
- EDWARD BURNS IN MEMORY OF WILLIAM BLAIR
- WILLIS M. MARTIN IN MEMORY OF ROBERT E. HENDERSON A MAN OF INTEGRITY
- LEWIS F. STAUCH IN MEMORY OF ROY WALTERS
- STEPHANI M. GARRIDO IN MEMORY OF LINDA DEFEO FROM SONNY GARRIDO
- MARJORIE MURO IN MEMORY OF BOB HENDERSON
- MARJORIE MURO IN MEMORY OF WILLIE YOUNG
- ARLENE J. MARTINEZ IN MEMORY OF ROY WALTERS
- JOHN MCKINNEY IN MEMORY OF ANDY ABELS
- AT & T UNITED WAY EMP. GIVING CAMPAIGN
The committee recommends and I so move to assist;
A widow with a one time payment of $288.12,
A widow with $275 per month with a six month review,
A member with medical premiums with a six month review,
A member with $600 per month with a six month review,
A member with $400 per month with a six month review,
A member with a one time payment of $1,099.51 plus $1,000 per month with a six month review.
There was no discussion or objections.
Motion carried to approve the above assistance as stated.
Chairman James Coburn presented the following motions.
The committee recommends and I so move to advance:
A member $1,000 per month for two months,
A member $2,000 for moving expenses,
A member’s spouse $2,500 per month with a six month review.
There was no discussion or objections.
Motion carried to approve emergency advancements as stated.
1) James Coburn informed the Board that they have talked with Recovery Associates and indicated that they have added a section for members to sign when receiving NIOD benefits. He indicated that it will state that if the member’s case is ruled IOD, all Relief benefits paid to the member will be refunded to the Los Angeles Firemen’s Relief Association. It will also state that the member will protect LAFRA’s right of reimbursement by pursing appropriate legal remedies and recognize LAFRA’s right to file a lien on any such proceedings. It states that the member shall also refund any daily funds utilized for compensation from LAFRA such as vacation, TS or holidays off.
2) James Coburn stated that the committee recommended and he so moved to pay for the Chaplains hats and jackets along with the already approved expenses they incur on behalf of the Relief Association. He mentioned that the committee discussed what was already approved, but also decided to pay for the Chaplains jackets and hats. There was no further discussion or objections.
Motion carried to approve paying for the Chaplains hats and jackets in addition to other approved expenses incurred on behalf of the Relief Association.
3) James Coburn stated that the committee recommended and he so moved to implement policy for funerals and add an additional up to $5,500 for an active duty death plus an additional up to $5,000 for an in the line of duty death in addition to the Relief Death benefit of $4,500. He mentioned that the Relief Association has incurred substantial debt for funeral costs and they need to be better controlled. He stated that this will provide a policy and procedure for what the Association will pay. There was discussion on how the City of Los Angeles will not reimburse the Relief Association for funeral expenses paid but will reimburse the family members. James Coburn also added that we will only pay additional amounts if all indebtedness is satisfied to the Relief Association as stated in the By-Laws. There was no further discussion or objections.
Motion carried to implement policy for funerals and add up to an additional $5,500 for an active duty Death and up to an additional $5,000 for an in the line of duty death.
ADMINISTRATIVE COMMITTEE REPORT
Trustee Gene Bednarchik presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $151,954.22. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $151,954.22.
The committee recommends and I so move to pay the professional fees in the amount of $2,004.10. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $2,004.10.
The committee recommends and I so move to approve signing contract with ESPN Zone with a $21,000 guarantee and setting ticket price at $45 presale and $55 two weeks prior to event. David Smith mentioned that several different options were presented to the Administrative Committee and the ESPN Zone was the one chosen for the Relief Holiday party. He reviewed cost comparisons from last year and indicated that LAFRA would subsidize the event by approximately $13,000 if 200 tickets were sold at $45 each. He indicated that the actual cost per person was $105. He also mentioned the $21,000 guarantee for ESPN Zone if the contract was signed. The food would be catered by Wolfgang Puck and would be buffet style. Each person attending would also receive a $20 game card for use in the facility. There was no further discussion or objections.
Motion carried to approve signing contract with ESPN Zone with a $21,000 guarantee and setting ticket price at $45 presale and $55 two weeks prior to event.
David Smith informed the Board that the mailing of the SPD’s was completed. He reported that the costs incurred for the mailing and printing of the packets was $44,000. He indicated that they saved money by packing and mailing in-house verses using a mailing house. He mentioned that the Medical Committee is looking into possibly for future mailings sending the SPD on CDs rather than printing and also placing it on the website in an effort to save costs.
David Smith referred to the audit performed on the entire medical plan by Segal on behalf of L.A. City Department of Fire and Police Pensions and indicated that it has been completed. He stated that the audit report was very favorable on LAFRA’s behalf. He indicated that a response letter from President Marino will be included in the appendix of the report. He mentioned that the audit report will be presented to the Pension Board on May 7th.
David Smith informed that Marlene and Dave Wagner have hired Tammy Gann as the new Web Administrator. He also mentioned that Dalmatians has hired a new part time employee, Grant Van Goeverden to staff one of the vans.
Board entered into executive session at 11:35am.
Board adjourned from executive session at 11:48am.
Mark Akahoshi motioned to approve the personnel salary action taken in Executive Session. Craig White so moved. There was no discussion or objections.
Motion carried to approve the personnel salary action taken in Executive Session.
EXECUTIVE DIRECTOR’S REPORT
Dave Smith stated that the majority of his items had been handled in the Administrative Committee report. He asked Todd Layfer to present the year-end financials for 2008. Todd reviewed overall revenue which was up about 6%, benefits paid to members, contributions and fund raising events which were up from 2007 and operating costs which were also up over 2007. He reported that the operating expenses are only 4% of total expenses. He also mentioned that the Grapevine loss was down 8% in 2008 because of an increase in full page ads and lower printing costs by changing printers. He stated that overall sales were down in the Dalmatians store due to walk-in traffic and the move. He presented a report summarizing investments by each fund balance. There was discussion on the allocation of indirect and shared costs to the WODFF. Todd Layfer recalled that the Board had approved new allocations for 2009 which would be lower for the WODFF. Todd stated this would continue to be an open item for future review.
1) Robert Steinbacher informed that he and several Board members attended the Healthcare Management Conference in Carlsbad along with our Medical Consultants and indicated that one of the take-a-ways was compared to other plans, LAFRA’s Medical Plan is one of the best. He mentioned how the conference addressed the mental/nervous benefit as well as the inpatient nervous benefit, which we may need to adjust in the future to be in-line with state law.
2) Steinbacher informed the Board of upcoming conferences and asked Trustees to let him know if they would be attending.
INVESTMENT COMMITTEE REPORT
Kurt Stabel addressed the Board and indicated that the pension funding level outlook did not look very positive for the future. He stated that in the past when there were market down turns, Cities could temper the impact with revenues that go down. He indicated that now revenues have gone down and the City will have to make up the short falls in the Pension funds. He felt that when contract negotiations come up, there will be no room for the City to move and they will have to make cuts someplace.
Kurt Stabel informed that PIMCO’s Distressed Debt Fund, which we are in, is well positioned and indicated that the Fund may do well. He mentioned that most other investment managers are negative in terms of the outlook for the economy.
MEDICAL COMMITTEE REPORT
David Lowe presented the following motions.
The committee recommends and I so move to pay the Medco Health Solutions bill in the amount of $464,414.24. There was no discussion or objections.
Motion carried to pay the Medco Health Solutions bill in the amount of $464,414.24.
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 the applications to the Medical Plan.
MEMBER APPLICANTS COMING ON PLAN EFFECTIVE DATE
- Futterer, Thomas J. Vanegaspou, Elizabeth (Dom. Partner) 3/6/2009
- Czubeck, James Charles Czubek, Cyrus Jameson (Son) 3/3/2009
- Hill, Bryan Hill, Alexandria (Dtr.) 2/3/2009
- Hernandez, Steven Wayne Self 2/17/2009
- Fernandez, Kelli (Spouse) 2/17/2009
- Fernandez, Mariah (Step Dtr.) 2/17/2009
- Basquez, Ricky (Step Son) 2/17/2009
- Leonard, Patrick Leonard, Jennifer (Spouse) 3/1/2009
- Mandelbaum, Adam Mandelbaum, Jennifer (Spouse) 3/1/2009
- Oropesa, Adrian T. Oropesa, Joel Tomas (Son) 3/2/2009
- Stromsoe, Craig Stromsoe, Tyler Warren (Son) 2/2/2009
- Tomlin, Kelly Dean Tomlin, Tyler Curtis (Son) 2/7/2009
- Hilyard, Harvey Lewis Jr. Hilyard, Glenda Rae (Spouse) 4/1/2009
- La Palio, Anthony M. Cassens, Savanna (Grandaughter) 3/2/2009
1) David Marino referred to the raffle for the Golf Tournament and asked if Trustees would want to carry the boxes to the stations to sell tickets. Trustees agreed to carry boxes and sell tickets.
2) David Marino informed the Board that the Mountain Gate Community held a fundraiser for the WODFF and raised over $30,000. He indicated that they wanted to show their appreciation for the firefighters saving their homes during the wildfires.
Doak Smith referred to the WODFF cards and asked if the Chiefs would be able to carry and give out and fires. David Marino mentioned that he was attending a meeting with the Chiefs and would bring up the issue May 6 and 7.
1) UFLAC & LAFRA Meeting – April 23th
2) IFEBP Investment Institute – April 26 – 29
3) Bowling for Firefighters – May 3rd
4) Medco Conference (Florida) – May 12 – 15
5) Grass Valley Reunion – May 12 – 17
6) Lane Kemper Softball Tournament – May 13th
7) Washington Legislative – May 16 – 20
8) Hope For Firefighters – June 4th
9) Dodger Game Firefighter Night – June 17th Heroes Day June 27th
10) LAFD Invitational Golf Tournament – July 27th
11) Colorado Springs Memorial – September 17 – 20
12) IFEBP Annual Conference – November 8 – 11th
13) Open House – November 21st
14) Relief Holiday Party – December 5th
1) John “Min” Lee – April 7th Odyssey Restaurant (Kuljis)
2) Wayne R. Langner – April 14th TBA
3) Craig Fletcher – April 15th Sagebrush Cantina, Calabasas (Doak)
4) Mark Villasenor – April 28th El Cariso Golf Course (White)
5) Mark Khitikian – April 30th Taix Restaurant (Lowe)
6) Tim Wilson – April 30th Sagebrush Cantina, Calabasas (Steinbacher)
7) Jimmy Nishimura – May 4th TBA
8) Arthur “Doug” Moore – May 12th Ports O’Call Restaurant (Kuljis & Larson)
9) Richard Markota – May 21st Odyssey Restaurant (Doak, Steinbacher)
10) Barry Hedberg – May 22nd Ports O’Call Restaurant (Marino, Lowe)
11) Gale E. Sanderson & William H. Koenig – May 26th Sage Brush Cantina
12) Reginald Williams & Delano Roberts – May 27th Kyoto Grand Hotel (Marino)
13) Terry S. Cooper – May 30th Dave’s Garage (Larson)
14) Jean C. Samson – July 23rd TBA
David Marino entertained a motion to adjourn. Gary Matsubara so moved. Juan Albarran seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 12:40pm.
David Marino, President