MINUTES OF THE BOARD OF TRUSTEES
January 7, 2010
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 10:58 a.m.
ROLL CALL
MEMBERS PRESENT:
- David T. Marino, President
- John Jacobsen, Vice President
- Andrew Kuljis, Secretary
- Trustee Jeff Cawdrey – Battalion 1
- Trustee Gene Bednarchik – Battalion 2
- Trustee Juan Albarran, Battalion 3
- Trustee James Coburn – Battalion 4
- Trustee Tim Larson – Battalion 6
- Trustee Robert Steinbacher – 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 Chris Hart – Battalion 18
- Trustee David Ortiz – Headquarters 1
- Trustee Kurt Stabel – Headquarters 2
- Trustee David Lowe – Pension 1
- Trustee Barry Hedberg – Pension 2
- Trustee Ralph Brownell – Pension 3
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee Mark Akahoshi, Battalion 5 (Excused)
INVOCATION & Flag Salute
Ralph Brownell 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 December 2, 2009. Gary Matsubara so moved. David Peters 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 December 2, 2009.
PRESIDENT’S REPORT
1) David Marino asked Secretary Andy Kuljis to officially administer the Oath of Office for John Jacobsen for the position of Vice President. Dave Marino presented Robert Steinbacher a gift of appreciation from the Association for his service as Vice President.
2) David Marino asked Secretary Andy Kuljis to administer the Oath of Office for Barry Hedberg for the position of Pension 2 Trustee.
3) David Marino indicated that since Dennis Mendenhall retired as Battalion 18 Trustee, Jeff Cawdrey has volunteered for the active position. David Marino called for a motion to appoint Jeff Cawdrey as the vacant Battalion 18 Trustee. Gary Matsubara so moved. Gene Bednarchik seconded. There was no discussion or objections.
Motion carried to appoint Jeff Cawdrey as the Battalion 18 Trustee. The Oath of Office was administered to Jeff Cawdrey by Secretary Andy Kuljis.
4) David Marino recommended and asked for a motion to appoint Robert Steinbacher as the President Pro-tem. Gary Matsubara so moved. Gene Bednarchik seconded. There was no discussion or objections.
Motion carried to appoint Robert Steinbacher as the LAFRA President Pro-tem.
5) David Marino asked for the Board to approve a change in Battalion Trustee positions. He indicated that Chris Hart would move to Battalion 18, James Coburn would move to Battalion 4 and Jeff Cawdrey would move to Battalion 1. Juan Albarran so moved. Gene Bednarchik seconded. There was no discussion or objections.
Motion carried to approve Battalion position changes as stated.
6) David Marino asked the Board for approval of Dennis Mendenhall’s costs to attend and participate in the Strategic Planning Session scheduled for January 26th & 27th. Tim Larson so moved. Gene Bednarchik seconded. There was no discussion or objections.
Motion carried to approve costs for Dennis Mendenhall to attend and participate in the Strategic Planning Session.
7) David Marino informed the Board of a situation with a reversed mortgage from a deceased widow. He stated that he had sent certified mail letters to the member’s son and has yet to hear back from him.
SECRETARY’S REPORT
Andy Kuljis mentioned that they have been visiting a few members in the hospital to offer any assistance. He also mentioned that they have been busy with funerals this month.
MEDICAL COMMITTEE REPORT
Chairman David Peters presented the following motions.
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.
The committee recommends and I so move to approve the usual and customary bills in the amount of $434,254.84. There was no discussion or objections.
Motion carried to approve the usual and customary bills in the amount of $434,254.84.
The committee recommends and I so move to send two Trustees to the IFEBP Washington Legislative Update. There was no discussion or objections.
Motion carried to send two Trustees to the IFEBP Washington Legislative Update.
1) David Peters informed the Board that Dawna Gray, of Bradawn Inc., David Marino and David Smith will be meeting with the Pension Department regarding LAFRA’s M.O.U. related to the Medical Plan for the retiree subsidy. He mentioned that they had gone through an audit about two years ago and it is time to renew the M.O.U. regarding audits and how they are conducted.
2) David Peters mentioned that the Medical Plan has received $306,000 from the Federal Government for the Retiree Drug Subsidy refund related to Medicare Part D. David Smith stated that the amount was only for two months. He indicated that we should received a total of about $1.7 million for 2009. We have $1.4 million total in hand to date. Also, he mentioned that we received $1.4 million for 2008.
3) David Peters informed the Board that later this month, they would be meeting with HealthScope Benefits regarding performance requirements in regards to their contract.
4) David Peters informed the Board that the committee has approved issuing an RFP for a pharmacy benefit manager.
INVESTMENT COMMITTEE REPORT
Chairman Kurt Stabel mentioned that he and Bob Steinbacher had visited their Equity Manager, Cohen & Steers in Seattle, Washington. He indicated that they met with Rick Helm, their Chief Investment Officer which basically spoke of the same forecast as PIMCO. Rick Helm foresees slower growth going forward in the next 1 to 3 years. Kurt Stabel indicated that currently, large risks are centered on interest rates and liquidity. He mentioned that in 2009, interest rates were actively pushed lower via extraordinary measures in government agencies. He stated that the question for 2010 is what will happen when rates rise and liquidity is sucked out of the financial system. Also how will it equal out once Growth begins to kick in.
Kurt Stabel informed that they had met with John Anderson about the relationship between Union Bank and LAFRA on how to effectively get the transition plan done to the revised investment mix previously approved by the Board.
AUDIT COMMITTEE REPORT
Chairman Doak Smith informed the Board that they have an Audit Committee meeting with the Harrington Group scheduled on January 19th. He indicated that the final audit report should be completed by April. David Marino also mentioned that the auditors will be participating in the Dalmatians Store inventory audit .
ADMINISTRATIVE COMMITTEE REPORT
Chairman David Peters presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $711,242.10. He mentioned that of that amount, $502,000 was Kaiser pass through. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $711,242.10.
The committee recommends and I so move to approve the professional fees in the amount of $10,944.22. There was no discussion or objections.
Motion carried to approve the professional fees in the amount of $10,944.22.
The committee recommends and I so move to approve up to $3,500 in seed money for the Hook & Ladder Enduro event. The event will take place on March 20th in Cal City. Proceeds benefit the WODFF. There was no discussion or objections.
Motion carried to approve up to $3,500 in seed money for the Hook & Ladder Enduro event.
The committee recommends and I so move to approve the retention of the Corporate Secretary and commensurate salary. There was no discussion or objections.
Motion carried to approve the retention of the Secretary and commensurate salary.
The committee recommends and I so move to approve sending up to 15 members to the IFEBP Annual Conference in Hawaii. There was no discussion or objections.
Motion carried to approve sending up to 15 members to the IFEBP Annual Conference in Hawaii.
1) David Smith presented an alterative Shared Cost Allocation for 2010. He indicated that with this report, they are giving the Board options on allocations. He mentioned that they have received feedback from Board members and are being responsive with the proposed allocation which would reduce allocations to WODFF by $100,000. He indicated that they have reallocated salaries on how staff spends their time and reduced overhead costs such as rent. He mentioned that the primary impact would be to the Relief and Medical budgets. He indicated that if you looked at the 2009 actual expenditures compared to the budget, both funds could easily absorb the increase. John Jacobsen indicated that they have always segregated the funds to set boundaries and to reflect the as close to the actual. He stated that he understood the desire by some Trustees to minimize as much cost to WODFF however, he felt that they should keep the allocation used in 2009. James Coburn indicated that he felt the opposite and indicated that the WODFF has provided the support for all the other funds to get started. He stated that he did not see that it would be a burden on Relief and Medical fund. The Board continued to discuss the percentage cost for every dollar donated to the WODFF. Chris Stine mentioned that the costs to WODFF should subside in the future once the fundraising practices expand and improve. David Smith indicated that in 2010, they will be applying for grants and pushing the Planned Giving Program.
David Peters motioned to continue with the 2009 allocation of overheads. David Lowe seconded. On the question, there was an objection. Thirteen voted in favor of the motion, seven opposed. There was no further discussion.
Motion carried to continue with the 2009 allocation.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith provided the Trustees with reading material for the Strategic Planning Session. He indicated that they will start the meeting with presentations from the Development and Marketing Department on fundraising, Financials from the Controller-Treasurer and the Potential National Healthcare impacts by Dawna Gray, our medical consultant. He indicated that he will review the 2009 Strategic Plan Initiatives and where we stand on completing them. He also indicated that they will look at the uncertainty of the future on the Medical Plan due to National Healthcare proposals and the City budget and what the implication they might have. He stated that they should come back with the goals the next 12 – 18 months.
2) David Smith referred to the website and indicated that they are close to completion. He mentioned that there are some items that Ciplex needs to fix. He mentioned again that R. A. Santiago will host the site once completed.
3) David Smith informed that the attorney has sent another letter to the owner of Fire Attire about removing the remaining Widows, Orphans, and Disabled Firemen verbiage from his web site. He reported that the owner has modified his web site and removed the verbiage.
VICE PRESIDENT’S REPORT
1) John Jacobsen informed the Board that during the Medical Committee meeting, they had approved a plan amendment effective January 1, 2010 to add mammograms and pap smears to be funded in addition to the annual physical benefit. Frequency of this addition benefit will be in accordance with AMA guidelines.
2) John Jacobsen mentioned that he, Marino and David Smith met with the San Diego Firemen’s Relief Association. He indicated that they wanted to visit LAFRA and see what it was we did and how our Association has grown to be what it is today. He also mentioned that they exchanged ideas and will remain in touch.
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 $32,598.21,
Estate Planning benefits in the amount of $11,608,
Relief Death benefits in the amount of $18,000,
Life & Accident Death benefits in the amount of $12,000
Life & Accident Withdrawals in the amount of $3,244.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
MEMORIALS
Gillie Robbins
Clarence A. Parr, Jr.
George P. Reagan
Leon C. Kolb
James Coburn read the names of members who recently passed and asked for a moment of silence from the Board.
ASSISTANCE COMMITTEE
Chairman James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $23,727.33 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $23,727.33 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for December 2009
- ALVINA C. BAKULA IN MEMORY OF MY HUSBAND EDWARD BAKULA WHO PASSED AWAY JULY 26, 2009
- ELIZABETH PARKER IN MEMORY OF MY HUSBAND JUNIOR L. PARKER
- ROBERT J. SHERWIN IN MEMORY OF JIM PERRY
- JOHN J. NICHOLSON TRUSTEE
- BRUCE DODD IN MEMORY OF MY DAUGHTER IN LAW CINDY DODD
- HOLMES BODY SHOP ON BEHALF OF CAROLYN TERADA
- ANTONETTE C. RAYCRAFT IN MEMORY OF MY LATE HUSBAND GEORGE W. RAYCRAFT
- VIRGINIA L. GUERNSEY IN MEMORY OF OUR UNCLE GILLIE ROBBINS
- FRANK S GORMAN IN MEMORY OF GILLIE ROBBINS
- RICK EAGGLESTON (1) PRIDE SCOOTER, (2) NEW BATTERIES, (2) CANES, (1) TRANSPORT WHEELCHAIR, (1) SMALL BASE QUAD CANE,
- JANE A DICK
- DONNA MILLER
- SPERIAN PROTECTIVE APPAREL, LTD IN MEMORY OF JIM PERRY
- JASON TORREY-PAYNE
- KEN WIGCHERT
- VALERIE LAWRENCE IN MEMORY OF JIM A. PERRY
- TODD J SANDS
- PEGGY JUST (2) CPR MANNEQUINS
- ETHEL I CRUMPACKER IN MEMORY OF MY LATE HUSBAND WALTER L. CRUMPACKER
- CATHERINE M. DEVINE IN MEMORY OF MY HUSBAND WILLIAM (ANDY) DEVINE WHO PASSED AWAY NOVEMBER 18, 1999
- ANONYMOUS
- LOS ANGELES FIREMEN’S GRASS VALLEY ASSN. IN MEMORY OF JIM PERRY
- HAWAII FIRE FIGHTERS ASSOCIATION IN MEMORY OF JIM PERRY
- HOWARD L. KELLEY IN MEMORY OF NANCY & MARGIE KELLEY
- RICH J. VAN NORT IN MEMORY OF ESTHER JONES
- RUTH E. VAUGHAN IN MEMORY OF MY LATE HUSBAND STEWART L. VAUGHAN
- KATHLEEN MCCARTHY
- ROBERT FURR IN MEMORY OF HARRY STIRES
- GLENNA R RENIKER IN MEMORY OF OUR BROTHER-IN-LAW HAROLD REED
- ANNE M. MATHEUS IN MEMORY OF MY BELOVED HUSBAND THOMAS V. MATHEUS WHO PASSED AWAY 12/17/2000
- MINNIE W. ROBBINS IN MEMORY OF MY HUSBAND GILLIE ROBBINS
- HELEN L. SCHULZ
- MICHELE B MEHRABADI
- DORIS TUCKER IN MEMORY OF MY HUSBAND ARNOLD E. TUCKER
- RICHARD L. WATTERS IN MEMORY OF LEON C. KOLB
- WILLIS M. MARTIN IN MEMORY OF JIM PERRY
- ANONYMOUS IN MEMORY OF JIM PERRY
- WILLIAM A. BURNIDGE IN MEMORY OF JIM PERRY
- CONNIE J. BEISNER-WARLING IN MEMORY OF GILLIE ROBBINS
- ROBERT R. VAN NORT IN MEMORY OF ESTHER JONES
- PAMELA GORDON
- WILLIAM MCCALL IN MEMORY OF JIM PERRY
- JULIANNE COPPERSMITH
- RENE VALDES
- JANICE K. CLIFFORD
- JOHN J. ADAMS IN MEMORY OF JIM PERRY
- ROSE SNOW
- LYNETTE LANSFORD
- MALEN W. JACOBS IN MEMORY OF MEL MOORE, RICH MCCLELAN, WILLIE BRAUN AND IN HONOR OF TED AQUARO, RALPH BROWNELL AND ANDY KULJIS
- ALLEN RABIN
- MARGARET PALIC
- SANTA BARBARA COUNTY’S UNITED WAY
- JUDY GATENA FROM THE TONER CARTRIDGE RECYCLING PROGRAM
- FIRE STATION NO. 29 FROM OUR FIRE EXTINGUISHER FUND
- RUTH TAYLOR IN HONOR OF KEN BUZZELL
- NESTLE COMMUNITY CARE CAMPAIGN ON BEHALF OF SHILOH FRANCO
- NESTLE COMMUNITY CARE CAMPAIGN ON BEHALF OF SHILOH FRANCO
- ADELA M. ANGIULI
- MARIE D SHAFER
- MARILYN OSTBY IN MEMORY OF MY LATE HUSBAND GORDON E. OSTBY
- FREDERICK E. MARTIN IN MEMORY OF LEON C. KOLB
- DEAN TUCKER IN MEMORY OF JAMES PERRY THE FATHER-IN-LAW OF LICI COLEMAN AT THE 505TH COMBAT TRAINING SQUADRON, HU
- ROBERT BULLARD IN MEMORY OF VIC BREWSTER
- GRETCHEN KANTERS IN MEMORY OF ESTHER JONES
- FUMIKO HUMBERD IN MEMORY OF MY HUSBAND JOHN HUMBERD WHO PASSED AWAY IN 1992
- ANONYMOUS
- ADRIENNE C. NELSON IN MEMORY OF JIM PERRY
- CORINA WEAVER
- FAITH D. DYMEK
- GREGORY L. EVANS
- MARIE D. SHAFER
- P31, INCORPORATED IN MEMORY OF CAPTAIN JAMES A. PERRY
- ANN M ZULIANI IN MEMORY OF MY HUSBAND ANGELO ZULIANI WHO PASSED AWAY JUNE 4, 1999
- MATT EKBLAD
- KATLEEN KENNEDY IN MEMORY OF PHIL MCKIM
- FIRE STATION NO. 62 FROM OUR FIRE EXTINGUISHER FUND
- ESTHER E. INABINET IN MEMORY OF ESTHER JONES
- DEAN LANGE IN MEMORY OF JIM PERRY
- ESTELLE BOOTH
- GERENE LORD IN MEMORY OF YOUR COUSIN ROBERT E. HARVEY
- ENDORA LA MOTHE
- LARRY FORD IN MEMORY OF JIM PERRY
- MALEN W. JACOBS IN MEMORY OF JIM PERRY
- EDWINA U. WILLIAMS
- CARLO PACIULLI
- E.H. BALFOUR
- ROCHELLE M. ASCHIERIS
- CAUSEWORTH INSURANCE SERVICES ON BEHALF OF KATRINA DAMIAN
- MICHELE E. SUMIDA
- GARY NELSON
The committee recommends and I so move to assist;
a widow with $200 per month plus medical premiums with a six month review,
a widow with $400 per month with a six month review,
a widow with medical premiums with a six month review,
a widow with medical premiums with a six month review,
a widow with $400 per month plus medical premiums with a six month review,
a widow with $413 per month plus medical premiums with a six month review,
a widow with medical premiums with a six month review,
a widow with medical premiums with a six month review,
a retired member with $522 for out of pocket expenses for an air ambulance,
a retired member with continued $600 per month with a six month review,
an active member with $4,000 for DME for disabled dependent,
an active member with $22,000 for a wheelchair for disabled dependent.
There was no discussion or objections.
Motion carried to approve the above assistance as stated.
EMERGENCY ADVANCEMENTS
Juan Albarran presented the following motions.
The committee recommends and I so move to advance:
a member $7,656.50 for outstanding bills,
a member $2,000 one time,
a member $4,500 one time,
a retired member a continued $3,500 per month with a six month review for physical therapy and in-home healthcare,
a surviving spouse a continued $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.
SETTING DATES
1) Strategic Planning Session – January 26 – 27
2) Hope for Firefighters – June 3rd
3) Colorado Springs Memorial – September 11th
4) LAFD Invitational Golf Tourn – September 13th
5) Annual IFEPB Conference (Hawaii) – November 14th – 17th
RETIREMENT DINNERS
1) Michael S. Fulmis – February 4th Brookeside Golf Club
2) Tim G. Larson – April 9th Ports O’Call Restaurant
3) Thomas L. Derby – May 1st Airtel Plaza Hotel Van Nuys
ADJOURNMENT
David Marino entertained a motion to adjourn. Gary Matsubara so moved. David Peters seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 12:15pm.
David Marino, President