MINUTES OF THE BOARD OF TRUSTEES
June 9, 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 10:12 a.m.
- David T. 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 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 David Ortiz – Headquarters 1
- Trustee David Lowe – Pension 1
- Trustee Tom Stires – Pension 2
- David Ned Smith – Executive Director
- Controller – Todd Layfer
- Trustee John Jacobsen – Battalion 2 (Excused)
- Trustee Chris Hart – Battalion 4 (Excused)
- Trustee Dennis Mendenhall – Battalion 18 (Excused)
- Trustee Kurt Stabel – Headquarters 2 (Excused)
- Barry Hedberg
- Fire Chief Douglas Barry
Greg Gibson 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 May 7, 2009. Gary Matsubara so moved. David Ortiz 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 May 7, 2009.
INVESTMENT COMMITTEE REPORT
Chris Stine informed the Board that Garth Flint was currently reviewing managers to replace J.W. Seligman. He indicated that they would wait for Kurt Stabel to return to make the decision. He reported on the current status of investments and stated that the portfolio was up at 4.5%.
ADMINISTRATIVE COMMITTEE REPORT
Trustee David Peters presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $614,444.33. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $614,444.23.
The committee recommends and I so move to purchasing two spots for $800 for the L.A. King’s Golf Tournament. There was no discussion or objections.
Motion carried to approve purchasing two spots for $800 for the L.A. King’s Golf Tournament.
The committee recommends and I so move to approve the Strategic Planning meeting in January 2010. This has been included in the budget. There was no discussion or objections.
Motion carried to approve the Strategic Planning meeting in January 2010.
The committee recommends and I so move to approve the salary/evaluation implementations resulting in increases effective July 1, 2009. David Smith reviewed that several months ago, the Board approved the new salary compensation program in that there would no longer be annual cost of living increases. He mentioned that in December, all employees received performance evaluations. He indicated that those evaluations had established goals for employees as well as praising and acknowledgement for good work. He mentioned that most employees had not had performance evaluations in years.
David Smith stated that all employee’s performance evaluations have now been updated and approved. He mentioned that David Marino signed off on the Manager appraisals as well as the Executive Secretary’s. David Smith prepared the manager’s evaluations and he had signed off on the other employee’s evaluations that had been written by the appropriate manager.
David Smith mentioned that he and Becky Valverde, H.R. Administrator, had worked together to produce a salary range for each job description. He indicated that their source of information and bench marking was based on a compensation survey compiled from the Center for Non-profit Management in 2008. He mentioned that he met with each manager and discussed salary action for each employee based on their performance and where they were in their salary range for that position which resulted in the proposed increases.
He stated that they proposed to implement salary increases ranging from 2.5% to 6% which presents an impact of 3.8% in the budget. He indicated that they had budgeted 5% for salary increases, however he felt that because of the economy, it would not be prudent to spend the full 5%. There was no further discussion or objections.
Motion carried to approve the salary/evaluation implementations resulting in increases effective July 1, 2009.
The committee recommends and I so move to continue holding the $8 million in cash in the non-interest bearing account at U.S. Bank until the end of the year. David Smith stated that 90 days ago the Board had approved holding the cash in the non-interest bearing account taking advantage of the provision in the TARP legislation to reduce risk. He stated than there is no limit on the amount of money insured by the Federal Deposit Insurance Agency through the end of the year. Because of the uncertainty in banking and low interest rates, it was decided to keep the full $8 million in a checking account at U.S. Bank because it is insured for the full amount. He mentioned that the banks had gone through the stress tests and indicated that U.S. Bank had passed the test. He mentioned that if they moved the cash into a money market account, we would only earn .4% interest which amounts to $333 per month per million dollars. He indicated that he had asked the Administrative Committee for direction and they decided to keep the cash in a risk-free non-interest bearing account.
Motion carried to continue holding the cash in the non-interest bearing account at U.S. Bank until the end of the year.
The committee recommends and I so move to send two members of the Medical Committee to the SIIA conference. There was no discussion or objections.
Motion carried to send two members of the Medical Committee to the SIIA conference.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith informed the Board that Marlene had attended a Planned Giving conference in Orange County. He indicated that as soon as the Hope for Firefighters and the Golf Tournament are over, her number one priority would be to expand the Planned Giving program.
2) David Smith informed the Board that the Raytheon Corporation has committed $25,000 to be the title sponsor for the LAFD Invitational Golf Tournament. He indicated that this was the first time to have a title sponsor and any single donor for that large amount of money. He congratulated Juliet and Marlene for this out come.
3) David Smith also informed that David Marino had received a donation check for $10,000 from the Mayo Classic. He mentioned that the funds were raised from last year’s Mayo classic event.
4) David Smith referred to the Hope for Firefighters event and thanked the Trustees for attending and helping with the event. He indicated that we are on the path to exceed the net $100,000 raised last year. It will take a few weeks before all the expenses and donations are known. Gene Bednarchik also thanked everyone including the staff.
5) David Smith referred to the website status and indicated that they are making progress and are expecting a launch date mid July.
MEDICAL COMMITTEE REPORT
Chairman David Peters presented the following motions.
The committee recommends and I so move to approve the usual and customary bills in the amount of $460,403.40. There was no discussion or objections.
Motion carried to approve the usual and customary bills in the amount of $460,403.40.
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 engage our legal council to assist recovery of an overpayment to Stanford Medical Center. David Peters stated that there was a convoluted mistake in that payments were reprocessed under the Beech Street network when they should have remained as a Blue Cross PPO. It was a matter of a member showing a Beech Street I.D. card as well as the Blue Cross I.D. card and a member’s primary address.
Motion carried to engage our legal council to assist recovery of an overpayment to Stanford Medical Center.
David Peters informed the Board that they have directed Bradawn, medical consultants, to develop a new contract with P.S. Duarte as our DME provider.
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 $7,963.26,
Estate Planning benefits in the amount of $5,977.50,
Relief Death benefits in the amount of $36,000,
Life & Accident withdrawals in the amount of $2,089.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
Connie A. Tidwell
George A. Cummings
Clarence C. Merriman
William R. Goss
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 $17,150.39 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $17,150.39 to the Widows, Orphans & Disabled Firemen’s Fund.
DONATIONS TO WIDOWS, ORPHANS & DISABLED FIREMEN’S FUND – MAY 2009
- RAY MAYO CLASSIC FROM THE RAY MAYO CLASSIC 2008
- MIDWEST CENTER FOR STRESS /ANXIETY LLC DONATION ON BEHALF OF KURT FASMER
- NATIONAL FIRE SPRINKLER ASSOCIATION, INC. IN MEMORY OF BILL GOSS
- FIRE STATION NO. 66 FROM OUR FIRE EXTINGUISHER FUND
- WOODLAND HILLS WOMAN’S CLUB, INC. IN HONOR OF FIRE STATION 105
- HOWARD L KELLEY IN MEMORY OF NANCY & MARGIE KELLEY
- HEALTH SCOPE BENEFITS INC IN MEMORY OF WARREN BRAUN
- BURT GRIFFIN IN HONOR OF LARRY KORCHAK
- LEO F. CHRISTENSEN IN APPPRECIATION FOR THE MOTORIZED LIFT CHAIR
- JAMES STIGLICH IN MEMORY OF JOHN LAWRENCE & WILLIE DUNN
- ROSE A. RILEY IN MEMORY OF MY HUSBAND CAPTAIN ROBERT H. RILEY
- ANTHONY M. MARINATOS IN MEMORY OF A GREAT MAN WARREN B. BRAUN
- CRAIG TAKENAKA IN MEMORY OF ANDREW JOHN SAUCEDA
- JUDY GATENA FROM THE TONER CARTRIDGE RECYCLING PROGRAM
- TERI ABELSON FROM THE MOUNTAINGATE COMMUNITY
- MARIE G. MICHELL IN MEMORY OF BARBARA SCHOLE
- WILLIAM A. FINN FROM MARK KHITIKIAN’S RETIREMENT DINNER
- JAMES STIGLICH IN MEMORY OF RICHARD DENNING, SR.
- HELEN L. SCHULZ
- DENNIS L. MENDENHALL IN MEMORY OF BILL GOSS
- JOHN J. ADAMS IN HONOR AND MEMORY OF A GOOD FRIEND WILLIAM R. GOSS
- KENNETH R. GOSS IN HONOR OF LAFD CHAPLAIN DANNY LEON
- JAMES L. MULVANY IN MEMORY OF BILL GOSS
- DANIEL J. KEMP IN MEMORY OF RALPH NELSON FATHER OF RETIRED CAPTAIN GARY NELSON FS-48B
- JEAN TIERNEY IN MEMORY OF MY HUSBAND PAT TIERNEY
- CLARENCE A. WOODBURN IN MEMORY OF WILLIAM R. GOSS
- HEINZ W. WAHLERS IN MEMORY OF WILLIE BRAUN, JIM FRANCIS, AND SAM CHEW
- MALEN JACOBS IN MEMORY OF BILL GOSS & WILLIE BRAUN
- KIM LY IN MEMORY OF ANDREW JOHN SAUCEDA
- JULIE DUNCAN IN MEMORY OF ANDREW J. SAUCEDA
- ROBERT GUGAJEW IN MEMORY OF ANDREW SAUCEDA
- DANNY FORD
- MARK KHITIKIAN FROM MY RETIREMENT DINNER
- GREGORY L. FANCON IN MEMORY OF WILLIAM R. GOSS
- RALPH N. NELMAN IN MEMORY OF MY WIFE JEAN NELMAN
- ARLINE WEST IN MEMORY TO MY HUSBAND STANLEY J. WEST, AND IN GRATITUDE TO FS-88 WHO PROVIDED MEDICAL SUPPORT AND
- GREG SIEGEL IN HONOR OF LARRY & TEENA FARRIS
- FREDERICK E. MARTIN IN MEMORY OF JOHN WILLIS
- GARY A CLINE FROM MARK KHITIKIAN’S RETIREMENT DINNER
- ROBERT S. SANCHEZ FROM MARK KHITIKIAN’S RETIREMENT DINNER
- GLEN G. LUCERO FROM MARK KHITIKIAN’S RETIREMENT DINNER
- RANDY T. LAUR FROM MARK KHITIKIAN’S RETIREMENT DINNER
- JUAN M. ALBARRAN FROM MARK KHITIKIAN’S RETIREMENT DINNER
- RICHARD L. DENNING, JR. FROM MARK KHITIKIAN’S RETIREMENT DINNER
- JAMES R. FINN FROM MARK KHITIKIAN’S RETIREMENT DINNER
- ARTHUR L. BURGESS FROM MARK KHITIKIAN’S RETIREMENT DINNER
- ARTHUR L. SUESS FROM MARK KHITIKIAN’S RETIREMENT DINNER
- ED BARRY FROM MARK KHITIKIAN’S RETIREMENT DINNER
- WILLIAM J. TANNAHILL IN MEMORY OF RICHARD ARAUJO
- THOMAS G. CROCKATT IN HONOR OF BILL GOSS
- FUMIKO HUMBERD IN HONOR AND MEMORY OF DEPUTY CHIEF WILLIAM R. GOSS
- GERALD G. HEARN IN MEMORY OF BILL GOSS
- THOMAS G. CROCKATT IN MEMORY OF ROBERT HENDERSON
- DAVID WHITEHURST IN MEMORY OF ANDREW J. SAUCEDA
- MEI-MEI CHENG IN MEMORY OF ANDREW J. SAUCEDA
- FIRE STATION 28 FROM OUR FIRE EXTINGUISHER FUND
- MARIE D. SHAFER
- RONNIE SILVER IN MEMORY OF A SPECIAL MAN BILL GOSS
- DONNA M. MOLLER IN MEMORY OF BARBARA SCHOLE
- DON R. BEAVER IN MEMORY OF WILLIAM “BILL” GOSS
- KATHLEEN L. THORNTON IN MEMORY OF BILL GOSS
- DENNIS D. LANE IN MEMORY OF BARBARA SCHOLE
- CAITLIN MCINTOSH IN HONOR OF JAMES BROOKS
- JULIE E. SIEGEL IN MEMORY OF LARRY FARRIS
The committee recommends and I so move to assist;
A member with up to $2,400 per month with a six month review,
A widow with $1,200 per month with a six month review,
A member with an additional $334.28 per month with a six month review,
A member with a one time out of pocket expense of $282 for therapy.
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 with one-time $3,900 for moving expenses,
A member an additional $500 for expenses incurred.
There was no discussion or objections.
Motion carried to approve emergency advancement as stated.
1) David Marino informed the Board that Ray Mayo had presented a check to the Widows & Orphans Fund in the amount of $10,000. He indicated that the funds were raised from the Mayo Classic 2008.
2) David Marino addressed the Colorado Springs Firefighter Memorial and mentioned that they have four names going on the wall of honor; James Just, William Dunn, John Lawrence and James Goodenow. He stated that he had spoken with UFLAC and indicated that they have agreed to split costs for the families to attend the memorial as last year. He mentioned that Jan Graft and Lori Harris where interested in attending this year to assist the widows with their needs.
Robert Steinbacher informed the committee that Sandra, Willie Dunn’s domestic partner, had requested to go the memorial. It was noted that Sandra had cared for Willie for the last 18 months of his life.
Gary Matsubara motioned to approve covering Sandra’s expenses for the memorial event. David Peters seconded. There was some discussion on technicalities and policy guidelines. There were no objections to the motion.
Motion carried to approve covering Sandra’s expenses for the memorial event in Colorado Springs.
3) David Marino addressed the memorial services for William Goss and Warren Braun at Fire Station 27 and stated that the Historical Society and Andy Kuljis did an outstanding job with assisting both families.
4) David Marino spoke about the Grass Valley event and how the reunion, being held for the last 30 years, has come to an end. He mentioned the passing of Warren Braun while attending Grass Valley and how he’d been surrounded by many old friends the days before. He spoke about how the Grass Valley Sheriff-Coroner had gone above the call of duty in assisting them with the passing of their friend “Willie”. He mentioned that they had sent a letter and small gift to the Sheriff’s Dept. as well as the Grass Valley Courtyard Suites for their sincerity and assistance in the matter.
5) David Marino informed that Chief Douglas Barry was present to address the Board. Chief Barry thanked the Trustees for all their work on behalf of the members, retired members and widows. He mentioned to the Board that he had announced his retirement a week ago and presented each one of the Trustees with a Challenge Coin as a memento of his term as Fire Chief.
David Marino presented a gift to Chief Barry from the Board. A Chief’s axe with an inscription that read; “To Chief Douglas Barry, In appreciation for your support and for always going above and beyond.”
6) David Marino informed that the Chaplains for the Fire Department were present to address the Board. Greg Gibson introduced the new Chaplains to the Board as well as the current Chaplains. He explained the role of the Chaplains and how they assist members. He also thanked the Board for picking up the costs for the new Chaplain’s coats and hats as well as the reimbursement of Relief dues. There was discussion on Chaplains being able to utilize the RB Code when it is necessary to hire behind them when needed. Greg Gibson also mentioned that the Chaplains have a diversity of religions to be supportive of members. David Smith suggested that the Chaplains write an article on their services and for LAFRA to post on the new website.
VICE PRESIDENT’S REPORT
1) Robert Steinbacher mentioned the upcoming conferences and asked for those who will attend. He is coordinating hotel arrangements.
1) Andy Kuljis informed the Board of the Pension Election status and indicated that the ballots have been mailed out. He also stated that we need to get the word out to the membership to update their beneficiaries.
1) Firefighters Night Dodger Stadium – June 17th
2) LAFD Invitational Golf Tournament – July 27th
3) Colorado Springs Memorial – September 17 – 20
4) IFEBP Annual Conference – November 8 – 11th
5) Open House – November 21st
6) Relief Holiday Party ESPN Zone – December 5th
1) John L. Nowell – June 9th Odyssey Restaurant (White)
2) Gary Johnson – June 10th American Legion Post 283 (Doak Smith)
3) Michael Riley – June 11th L.A. Convention Center Petree Plaza (Ortiz)
4) Craig Morrison – June 17th Odyssey Restaurant (Doak Smith)
5) David Sawlsville – June 18th Sagebrush Cantina (Lowe)
6) Jean C. Samson – July 23rd TBA
7) Bruce Young – August 15th Home of Dana Larsen
8) David Lilly – August 29th David Lilly’s Backyard
David Marino entertained a motion to adjourn. Tim Larson so moved. Gary Matsubara seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 11:50am.
David Marino, President