MINUTES OF THE BOARD OF TRUSTEES
January 6, 2011
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 10:47 a.m.
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee Jeff Cawdrey – Battalion 1
- Trustee Gene Bednarchik – Battalion 2
- Trustee James Coburn – Battalion 4
- Trustee Mark Akahoshi, Battalion 5
- Trustee Chris Hart – Battalion 6
- Trustee Rick Godinez – Battalion 7
- Trustee Doak Smith – Battalion 9
- Trustee Gary Matsubara – Battalion 11
- Trustee Robert Steinbacher – Battalion 14
- Trustee Steven Domanski – Battalion 15
- Trustee Francisco Hernandez – Battalion 17
- Trustee Steve Tufts – Battalion 18
- Trustee David Ortiz – Headquarters 1
- Trustee Kurt Stabel – Headquarters 2
- Trustee David Lowe – Pension 1
- Trustee Barry Hedberg – Pension 2
- Trustee Tim Larson – Pension 3
- David Ned Smith – Executive Director
- Controller – Todd Layfer
- Trustee Michael Overholser, Battalion 3 (Excused)
- Trustee David Peters – Battalion 10 (Excused)
- Trustee Craig White – Battalion 12 (Excused)
- Trustee Chris Stine – Battalion 13 (Excused)
- Jim Dolan, Asst. Secretary
- Bob Olsen, L.A. Retired Fire & Police
- Dennis Mendenhall, Retired
- Dawna Gray, Bradawn Inc.
INVOCATION & Flag Salute
Andrew Kuljis led the invocation.
OATH OF OFFICE
Andrew Kuljis administered the Oath of Office to John Jacobsen for the position of President and to Juan Albarran for the position of Vice President.
Andrew Kuljis proceeded in giving the odd-numbered Battalion Trustees and the Pension Trustee Tim Larson the Oath of Office for their positions.
John Jacobsen informed the Trustees that a member was present to address the Board on his appeal regarding repayment of his advancement.
The member appealed his case to the Board and requested that they work with him on his repayment and possibly write-off a portion of his advancement. He explained his reasons for all his monthly expenses including his current family situation. Some of the Trustees asked the member for clarification on his monthly expenses. The member was told that he would be informed of the Board’s decision immediately after the meeting.
After further review and discussion from the Board, David Lowe motioned to deny the member’s request to write-off a portion of his advancement. Robert Steinbacher seconded. There were no objections.
Motion carried to deny the member’s request to write-off a portion of his advancement.
After discussing several options to assist the member with repayment of his advancement, Gene Bednarchik motioned to reduce the member’s payment as stated for a term of five years, with a balloon payment due by him for the remaining balance immediately after the five-year term. Robert Steinbacher seconded. There was no further discussion or objections.
Motion carried to reduce the member’s monthly payment as stated for a term of five years, with a balloon payment due by him for the remaining balance immediately after the five-year term.
RATIFICATIONS OF MINUTES
John Jacobsen entertained a motion to ratify and dispense with the reading of the minutes of the Board of Trustees meeting held December 2, 2010. Gary Matsubara 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 December 2, 2010.
1) John Jacobsen informed the Trustees that Unum was present to address Long Term Care options for the LAFRA Fire Medical Plan. He also stated that Dawna Gray of Bradawn Inc. and two UNUM representatives were available to answer any questions and also provide further insight to the program.
Dawna Gray informed the Board that the Medical Committee had given them direction to look into possible Long Term Care insurance. She stated that they obtained pricing and comparisons on a few options as well as various carriers. She instructed Unum to provide a personalized cost estimate for each Trustee based on their age to give them an idea of cost contribution and benefits. She presented the structure of how the medical plan would provide the stated premiums for active members enrolled on the plan and subsidize that same rate for retirees. She explained that if the medical plan provided the premium of $9.71 per active member per month, they would also provide that same amount as a subsidy for retired members also enrolled on the plan. She stated that the pricing proposed from Unum included a $1,500 per month benefit paid for two years. She indicated that members who choose to enroll with the long term care option would also have the option to enroll their spouse, children and parents. She also mentioned that the member will have an option to increase their benefit if they chose to do so. Costs of these additional benefits would be paid by the member.
The Trustees asked several questions pertaining to coverage, underwriting and cost to the Relief Association. John Jacobsen asked the Trustees to write down any other questions they might have for the Unum representatives.
2) John Jacobsen informed the Board that they have two vacant Battalion positions that will be filled by Rick Godinez and Steve Tufts.
3) John Jacobsen informed the Board that the IRS Mileage Reimbursement allowance was changed to $.51 as of January 1, 2011.
4) John Jacobsen referred to the M.O.U. negotiations with Fire & Police Pensions and indicated that they have written a letter to Mike Perez regarding the set back caused by the City Attorney and to encourage them to finalize the agreement.
VICE PRESIDENT’S REPORT
EXECUTIVE DIRECTOR’S REPORT
1) David Smith informed that the Dalmatian store will be closed Friday and Monday to perform inventory. He mentioned that our outside auditor will also participate in the inventory.
2) David Smith informed that we will hold the Trustee Strategic Planning Session on March 29th & 30th.
3) David Smith also informed that they will begin accepting applications for the Accounts Payable vacant position.
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 $901,033.64. He stated that $500K was for Kaiser pass through. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $901,033.64.
The committee recommends and I so move to pay the professional fees in the amount of $17,738.21. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $17,738.21.
The committee recommends and I so move to go with the new Salary and Shared Cost Allocation for 2011 and a change in reporting of store costs. There was no discussion or objections.
Motion carried to approve the new Salary and Shared Cost Allocation for 2011 and the Reporting of Store Costs.
The committee recommends and I so move to change James Dolan title from Interim Assistant Secretary to Assistant Secretary. Steinbacher mentioned that they had posted the position in the October Grapevine and received no applications. There was no discussion or objections.
Motion carried to change James Dolan title from Interim Assistant Secretary to Assistant Secretary.
MEDICAL COMMITTEE REPORT
Robert Steinbacher 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 all but one application to the Medical Plan.
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 $48,334.54,
The Estate Planning benefit in the amount of $6,628.95,
The Life & Accident Withdrawals in the amount of $2,460,
The Life & Accident Death benefit in the amount of $24,000
The Relief Death Benefits in the amount of $58,500.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Robert L. Miller
Hubert L. Bishop
Gary L. Clark
Stephen W. Bascom
Herbert G. French
Russell W. Collier
Donald T. Wagner
Gale M. Anderson
Elvyn L. Kirk
Paul N. Roberts
Leo F. Christensen
Richard R. Sibla
Gary M. Stameisen
James Coburn read the names of members who recently passed and asked for a moment of silence from the Board.
James Coburn presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $10,101.28 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $10,101.28 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for December 2010
- RON BERG PHOTOGRAPHY INC.
- RICHARD M. LAMBINE
- EDWARD J. WHITE
- HARLAN WOOD
- ELISSA M. COLLIER IN MEMORY OF OUR FATHER, RUSSELL WILLIAM “BILL” COLLIER
- ANTONETTE C. RAYCRAFT IN MEMORY OF MY HUSBAND GEORGE W. RAYCRAFT
- CATHERINE DEVINE IN MEMORY OF CAPT. BILL “ANDY” DEVINE
- TODD J. SANDS
- BILLY CHRISTIAN IN MEMORY OF TRUEMAN R. CHRISTIAN & JOHN R. SCHINDLER
- BETTY HALE MCLAUGHLIN IN APPRECIATION OF FIRE STATION 29
- PATSY J. CHRISTENSEN IN MEMORY OF MY HUSBAND LEO F. CHRISTENSEN
- DON RICKLES
- FIRE STATION NO. 112 FROM THE EXTINGUISHER FUND
- FIRE STATION NO. 90 FROM THE EXTINGUISHER FUND
- CAROLYN N MORRIS IN MEMORY OF MY HUSBAND MARVIN W. MORRIS
- JACK W CREAGER IN MEMORY OF VIRGINIA CHRISTENSEN
- VERA C. CATLOW IN MEMORY OF JOHN CATLOW, JIM CATLOW AND GUY COOK
- FRED E IHDE IN MEMORY OF VIRGINIA CHRISTENSEN AND RUSSELL “BILL” COLLIER
- HELEN L SCHULZ
- VIRDEN FAMILY SURVIVORS TRUST IN MEMORY OF RUSSELL “BILLY” COLLIER
- MARCIA H BREWER IN MEMORY OF CAPTAIN RUSS MCMENAMIN
- BETTIE M. CLARK IN MEMORY OF MY HUSBAND GREG CLARK
- DORIS S. TUCKER IN MEMORY OF MY HUSBAND ARNOLD E. TUCKER
- JOSEPH MANNARA IN MEMORY OF WILLIAM H. LATHAM
- BETTY LARSON
- A KEN KRUPNIK
- NESTLE FROM SHILOH FRANCO
- JEFFREY W YATES IN MEMORY OF BILL COLLIER
- VIRGINIA A. JUDY IN MEMORY OF BILL LATHAM
- HELEN E. DENNY IN MEMORY OF BILL LATHAM
- FIRE STATION NO 88 FROM THE EXTINGUISHER FUND
- FIRE STATION NO. 70 FROM THE EXTINGUISHER FUND
- FIRE STATION 43 FROM OUR FIRE EXTINGUISHER FUND
- FRANCES M WATT IN MEMORY OF MY HUSBAND DON W. WATT
- PAUL R BIAZEVICH IN MEMORY OF JOE ZITKO
- BETTY JOHNSON IN MEMORY OF JOE ZITKO
- NELL G HULSEY IN MEMORY OF RUSSELL COLLIER
- FUMIKO HUMBERD JR IN MEMORY OF MY HUSBAND JOHN HUMBERD JR.
- JAMES GILLUM FROM THE “BREAKFAST GANG”
- JANET D ROTH IN MEMORY OF JACK SIMMONS
- KAREN LARSON IN MEMORY OF BILL COLLIER
- ANONYMOUS DONATION
- LEW TAUB
- VITO E. MAGGIPINTO IN MEMORY OF GALE ANDERSON
- DENISE HASTINGS IN MEMORY OF LEO F. CHRISTENSEN
- GERALD SIMON IN MEMORY OF MY “BROTHER-IN-LAW” & UNCLE GALE ANDERSON
- FRANCIS G CLINITE IN MEMORY OF HERB SLAFTER
- RICHARD WARFORD IN MEMORY OF JOHN CALLAHAN
- THELMA MACHALE
- VIVIENNE E WEST
- HELEN MEGORDEN
- DONALD CATE
- SHARON BOWLES IN MEMORY OF JACK SIMMONS
The committee recommends and I so move to approve assistance applications for both active and retired. There was no discussion or objections.
Motion carried to approve the assistance applications as stated.
Andrew Kuljis mentioned that they have been working on installing new software to improve the death notifications. He also asked for some assistance in attending member funerals and the flying of flags at members’ last assignments.
Chris Hart informed that they will have a store meeting to discuss figures from the 2010 sales. He indicated that they will also discuss an action plan to improve sales and possibly hire a consultant to determine what they may be doing wrong and maybe change some of the merchandise. He referred to the website and mentioned that there are still a couple of minor items they need to address.
John Jacobsen mentioned that he has made some changes to the Investment Committee. He indicated that he has added a few new Trustees to the committee and appointed Robert Steinbacher as Chairman of the committee.
Kurt Stabel mentioned that he had met with PIMCO in December and talked about their strategy and outlook as well as a new fund they will be launching. He indicated that the Disco Fund will liquidate at some point and stated that they are trying to expand their product line and add a new private equity fund. He also indicated that the Total Return Fund is changing their investment guidelines by going from straight up bonds to also including a limited amount of equity linked securities. He stated that they will not be common stocks but will be up to 10% in either convertible or preferred stocks. He also reported that the best performing asset class in 2010 was commodities. He reported that he met with Knightsbridge to discuss their performance issues. He indicated that they are considering placing them on the watch list.
Steinbacher presented the following motion.
The committee recommends and I so move to approve sending up to 5 Trustees to the Investment Conference in Las Vegas. There was no discussion or objections.
Motion carried to approve sending up to 5 Trustees to the Investment Conference in Las Vegas.
Kurt Stabel mentioned that he received an email from Garth Flint who was suggesting that they reduce their allocation to the PIMCO Total Return Fund. He stated that he felt that they should diversify their position because they have huge exposure to that bond fund.
A meeting of the Investment Committee will be set within the month.
Doak Smith referred to the Scholarship Program and indicated that all information regarding the program will be placed on the website as of February 1st. He indicated that the number of scholarships will not change, however the qualification criteria for the grade point average will be eliminated. He stated that he would like to change the qualification criteria to being a high school senior and removing the grade point average requirement. He indicated that it would reduce the amount of time and work from reviewing transcripts.
David Lowe reported that the Golf Tournament is going to have a Ball Drop at this year’s event. He stated that they will begin to advertise on the website, Grapevine and all social network pages within the next month. He also suggested that if any Trustee knows someone who would be willing to donate a grand prize for the Ball Drop, to inform either him and/or Juliet.
SETTING OF DATES
1) Badge Fights – January 14th
2) Buzzard Bait Ride – January 15th
3) Hook & Ladder Enduro – March 19th
4) Strategic Plan Session – March 29th & 30th
5) Investment Conf. IFEBP – April 11th – 13th Las Vegas
6) Corbin Bowl – May 1st
7) Grass Valley – May 2nd – May 7th
8) Lane Kemper Softball Tournament – May 4th
9) Hope for Firefighters – June 2nd
10) LAFD Invitational Golf Tourn – September 19th
11) SIIA – October 9th – October 12th
12) IFEBP Annual Conf. – October 30th – November 2nd
1) James Morrow II – February 5th, Los Robles Green Golf Course (Lowe)
2) Michael Nealy – February 19th, Automobile Driving Museum
3) Ron Berry – February 19th, FS 80
4) Bob Vege – March 12th, FS 114 (Peters/Lowe)
John Jacobsen entertained a motion to adjourn. David Lowe so moved. Gary Matsubara seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 1:23pm.
John Jacobsen, President