MINUTES OF THE BOARD OF TRUSTEES
December 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 10:05 a.m.
- David T. Marino, President
- Robert Steinbacher, Vice President
- Andrew Kuljis, Secretary
- Trustee James Coburn – Battalion 1
- Trustee John Jacobsen – Battalion 2
- Trustee Juan Albarran, Battalion 3
- Trustee Chris Hart – Battalion 4
- Trustee Gene Bednarchik – Battalion 7
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee Gary Matsubara – Battalion 11
- Trustee Craig White – Battalion 12
- Trustee Chris Stine – Battalion 13
- Trustee Michael Overholser – Battalion 14
- Trustee Steven Domanski – Battalion 15
- Trustee Francisco Hernandez – Battalion 17
- Trustee Dennis Mendenhall – Battalion 18
- Trustee David Ortiz – Headquarters 1
- Trustee Kurt Stabel – Headquarters 2
- Trustee David Lowe – Pension 1
- Trustee Tom Stires – Pension 2
- Trustee Ralph Brownell – Pension 3
- David Ned Smith – Executive Director
- Controller – Todd Layfer
- Trustee Mark Akahoshi, Battalion 5 (Excused)
- Trustee Tim Larson – Battalion 6 (Excused)
- Barry Hedberg, Pension 2 Elect
- Chung Ho, ULFAC
- Jeff Cawdrey
INVOCATION & Flag Salute
David Ortiz led the invocation.
President Marino presented Dennis Mendenhall with a commemorative clock containing a plaque to acknowledge and show appreciation for his 25 years of service as a dedicated Trustee of the Los Angeles Firemen’s Relief Association. Dennis Mendenhall thanked the Board for his acknowledgement and stated it was his pleasure to serve the Relief Association because they had been there for him and his family. On behalf of UFLAC Chung Ho and Doak Smith presented Dennis with an engraved firefighter’s axe.
David Marino also presented Dawna Gray of Bradawn Inc. a firefighter’s axe with special engraving acknowledging her tremendous support and service to the Association and especially its members. David Marino stated that Dawna has gone above and beyond her services to personally help members with their medical needs.
David Marino acknowledged Tom Stires for his service as Trustee and presented him with a plaque. He thanked him for his dedication and support to the LAFRA membership. Tom stated that he’d still be around to help when needed.
David Marino informed the Board that he had asked Chung Ho to be present at the Board meeting to speak on the Union’s EAP. Chung Ho spoke briefly on what the Union’s EAP offered and mentioned his background as a practicing attorney and how he can help with legal questions. He also mentioned the importance in developing the relationship with the Union’s EAP program and the Relief Association. He had also discussed the EAP program in more detail with the Relief Committee prior to the Board meeting.
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 5, 2009. David Peters so moved. David Lowe 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 5, 2009.
Andrew Kuljis informed the Board of the election results for the Pension 2 position. He announced that the winner was Barry Hedberg. He reported that Barry Hedberg received 65% of the vote and John Keys received 34.9%. He asked for the Board to ratify the election results.
David Marino entertained a motion to ratify the results of the election. David Lowe so moved. David Peters seconded. There was no discussion or objections.
Motion carried to ratify the results of the election.
It was announced that in accordance with the By-laws Barry will be sworn in as a Trustee at the January 2010 Board meeting.
1) David Marino informed the Board that he had met with the new Fire Chief Millage Peaks and indicated that he is very supportive of the Relief Association. He also mentioned that the Chief plans to attend the LAFRA ESPN Zone Holiday party.
2) David Marino mentioned the ESPN Zone party and asked Trustees to assist with the event. He indicated that they need several people to help at the front desk to ensure that only firemen and their guests get into the party. He stated there were over 200 RSVP’s for the event.
MEDICAL COMMITTEE REPORT
Chairman David Peters 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 the applications to the Medical Plan.
INVESTMENT COMMITTEE REPORT
Chairman Kurt Stabel presented the following report concerning the transition plan to the previously approved investment allocation.
Bond, Equity, and Commodity markets continued to post strong gains during October and November. The U.S. Dollar has continued to steadily decline in value against both developed and emerging market currencies. Bond market observers have noted that U.S. Government Bond issuance is at record levels and demand has remained strong which has translated to very low current yields for investors in this asset class. The main question right now is how long can these seemingly opposite characteristics of record levels of supply (bond issuance) and low yields continue in light of mounting fiscal deficits, which may later lead to a loss of investor appetite for U.S. Government Debt.
The recent events in Dubai seem to have driven a sell-off in some Arab markets but a wide-spread downturn seems to have been avoided. The worldwide property bubble is still claiming victims and Dubai World (an investment company controlled by the Government of Dubai) is the latest story in a property market that is suffering from a mountain of bad debt. Further, global markets appear to have shrug off Dubai and the UAE’s stance that they will not “backstop” these loans, which some estimate to be approximately $60 billion dollars (possibly $26 billion will be restructured).
Emerging Markets continue to perform well, partially driven by improving underlying economic fundamentals and strong local currency markets (which are attracting a flood of money to these countries). Long term, these markets are expected to perform well due to their relatively low sovereign debt levels and higher organic growth rates versus developed countries. Our investment in this sector has performed well this year. We have transitioned from T. Rowe Price to another Emerging Market Manager with an expected lower level of volatility.
Bob and I will be traveling to visit our Large Cap Value Manager and will give a full report to the Board next meeting.
He stated that they will slowly move money out of PIMCO and move new money into Emerging Markets and Commodities Managers. He indicated that they will be doing so within the next several months. Stabel presented the following motion.
The committee recommends and I so move to move money out of PIMCO Total Return fund and move into new managers. There was no discussion or objections.
Motion carried to move into the PIMCO Real Return Commodities Fund and Gresham both are new commodities managers.
ADMINISTRATIVE COMMITTEE REPORT
Chairman John Jacobsen presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $653,948.72. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $653,948.72.
The committee recommends and I so move to spend up to $14,000 to purchase photo/video equipment for the Grapevine and Marketing departments. There was no discussion or objections.
Motion carried to spend up to $14,000 to purchase photo/video equipment for the Grapevine and Marketing departments.
The committee recommends and I so move to spend $5,500 on a new mobile POS system for the Dalmatian vehicles. There was no discussion or objections.
Motion carried to spend up to $5,500 on a new mobile POS system for the Dalmatian vehicles.
The committee recommends and I so move to approve the employee year-end bonuses. There was no discussion or objections.
Motion carried to approve the employee year-end bonuses.
The Board entered into executive session at 10:55am.
The Board adjourned from executive session at 11:10am.
John Jacobsen entertained a motion to ratify the actions taken for personnel issues from the Executive Session. David Peters so moved. Michael Overholser seconded. There was no discussion or objections.
Motion carried to ratify actions taken for personnel issues from the Executive Session.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith reported on the website status and indicated that they continue to make measured progress. He indicated that Ciplex is being responsive; however, they continue to come across bugs in the system when uploading content. He mentioned that once the site is launched, they will discontinue service with Ciplex and contract with R.A. Santiago to host the website and provide any needed consulting services.
2) David Smith mentioned that the Credit Union banking operations should be opened by December 14th which should help with visibility for the Dalmatian store.
3) David Smith informed the Board that Fire Attire and Aces & Angels have both been sent cease and desist letters from Robert Ridley. He indicated that they will meet with Ridley the following week to discuss further action.
4) David Smith reminded the Trustees of the Strategic Planning Session to be held on January 26th and 27th at the same location as the year before.
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 $5,100,
Estate Planning benefits in the amount of $600,
Relief Death benefits in the amount of $32,638.64,
Life & Accident Death benefits in the amount of $12,000
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Ralph D. Urquiza
Robert M. Parkinson, Jr.
Leonard J. Rohm
Harvey L. Hilyard, Jr.
Harry P. Stires
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 $11,178.98 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $11,178.98 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF November 2009
- SUE LEPISTO IN MEMORY OF MY FATHER BOB HENDERSON
- SHIRLEY ROOK IN MEMORY OF MY HUSBAND RALPH ROOK WHO PASSED AWAY OCTOBER 13, 2000
- DOUG BARRY FUNDS FROM YOUR RETIREMENT DINNER
- JERRY CHILDS IN HONOR OF CHIEF JACK HERITAGE 1962 VOLUNTEER FIRE DEPT. DIKE, IOWA
- GERALDINE SCHINDLER IN MEMORY OF MY HUSBAND JOHN ROBERT SCHINDLER
- RODNEY S. KILPATRICK IN MEMORY OF RALPH URQUIZA
- LITTY MATHEW
- SPENCER L. THOMAS IN MEMORY OF ROBERT G. HANSEN
- KEN KEMP
- DANIEL J. KEMP
- THOMAS B STIRES IN MEMORY OF OUR FATHER HARRY P. STIRES
- WILLIAM STIRES IN MEMORY OF YOUR FATHER HARRY P. STIRES
- HOWARD L. KELLEY IN MEMORY OF NANCY & MARGIE KELLEY
- CAROLYN SHAFFER IN MEMORY OF J.R. “JAKE” HOLT
- SCOTT QUINN
- GLENN JAYNES IN GRATITUDE FOR THE WORK OF L.A.F.R.A.
- DOROTHY W GACH IN GRATITUDE TO FIRE STATIONS #37 & 71 FOR SAVING MY HOUSE
- CHRISTOPHER R. BURTON
- KIRK BASORE IN MEMORY OF MY L.A.F.D. FRIENDS THAT PASSED AWAY IN 2009
- HELEN L SCHULZ
- DANNY LEON IN MEMORY OF LOUIS NOWELL
- DANNY LEON IN MEMORY OF JUNIOR PARKER
- DANNY LEON IN MEMORY OF ROBERT HARVEY
- MARILYN D. BOMICINO IN MEMORY OF TIMOTHY BOMICINO GRANDSON OF WILLIAM BOMICINO
- MARCIA H. BREWER IN MEMORY OF RUSS MCMENAMIN WHO PASSED AWAY IN 2006
- ROGER D. COOK
- MILTON QUINTANA
- BRIAN MARTINEZ
- JEFFREY S. BRAFF
- JAMES FLORES
- RANDALL R. MAIN
- DAVID T BOWDEN
- TIMM S. ROARTY
- MICHAEL CATALANO
- PAT BACON IN MEMORY OF ESTHER JONES
- BETTY V. LARSON
- DARIN HERBERT FIRE EXTINGUISHER FUND
- FIRE STATION NO. 13 FROM OUR FIRE EXTINGUISHER FUND
- MARTHA SENSEL IN MEMORY OF HARRY STIRES
- CATHERINE M NAEGLE IN MEMORY OF CHARLIE DODGE, LYLE LENTZ, AND PEGGY HAMILTON WIFE OF AL HAMILTON
- NICHOLAS A. DUREPO
- MARIE D. SHAFER
- EDWARD BURNS IN MEMORY OF JUNIOR L. PARKER
- KATHY M. TAYLOR IN MEMORY OF GEORGE SEGELKE
- JACK FITZGERALD IN MEMORY OF GLORIA ORTIZ
- JAMES F. PERSON IN MEMORY OF CAPT. WALT GREENLEAF AND ENGINEER J.R. HOLT
- CHUCK H. FIERCE IN MEMORY OF GLORIA ORTIZ
- EDWIN C BURNHAM IN MEMORY OF ERNEST J. BROWNE JR. AND HIS WIFE CONSTANCE “CAROLE” BROWNE
- EDWIN C BURNHAM IN MEMORY OF TIMOTHY BOMICINO GRANDSON OF BILL & MARILYN BOMICINO
- EDWARD T. CHILSON IN MEMORY OF ROBERT G. HANSEN
- GLEN D. GOMEZ
- WILLIAM L VAN NORT IN MEMORY OF MY AUNT ESTHER JONES
- ROGER D WARLING IN MEMORY OF GILLIE ROBBINS
- ROBERT RODRIGUEZ
- VIRGINIA A. POPP IN MEMORY OF HAL REED
- CAROL ROSKAM
- ARCHER R. MORGAN IN MEMORY OF JUNIOR PARKER
- BEVERLEY BARRETTE IN MEMORY OF JAKE HOLT
The committee recommends and I so move to assist;
a widow with medical premiums with a six month review,
a widow with $500 per month plus medical premiums with a six month review,
a widow with $500 per month with a six month review,
a widow with $400 per month with a six month review,
a retired member with $558.52 per month with a six month review,
a retired member with $500 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 motion.
The committee recommends and I so move to advance:
a member $8,200 for debt pay-off,
a member $4,454.50 for attorney expenses and back rent,
a widow $2,000 for a dental bill,
a widow with $2,000 per month with a six month review on a reversed mortgage.
There was no discussion or objections.
Motion carried to approve emergency advancement as stated.
1) Relief Holiday Party ESPN Zone – December 5th
2) UFLAC Christmas Party – December 4th
3) Bailie Open – December 9th
4) L.A. Retired Fire & Police Holiday Party – December 13th
5) Strategic Planning Conf. – January 26th – 27th
1) Michael S. Fulmis – February 4th Brookside Golf Club
David Marino entertained a motion to adjourn. David Lowe so moved. David Peters seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 11:21am.
David Marino, President