MINUTES OF THE BOARD OF TRUSTEES
May 12, 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 10:21 a.m.
- John Jacobsen, President
- Juan Albarran, Vice President
- Andrew Kuljis, Secretary
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee Gary Matsubara – Battalion 11
- Trustee Craig White – Battalion 12
- Trustee Steven Domanski – Battalion 15
- Trustee Francisco Hernandez – Battalion 17
- Trustee Steve Tufts – Battalion 18
- Trustee David Lowe – Pension 1
- Trustee Barry Hedberg – Pension 2
- Trustee Tim Larson – Pension 3
- David Ned Smith – Executive Director
- Controller – Todd Layfer
- Trustee Jeff Cawdrey – Battalion 1 (Excused)
- Trustee Gene Bednarchik – Battalion 2 (Excused)
- Trustee Michael Overholser, Battalion 3 (Excused)
- Trustee James Coburn – Battalion 4 (Excused)
- Trustee Mark Akahoshi, Battalion 5 (Excused)
- Trustee Chris Hart – Battalion 6 (Excused)
- Trustee Rick Godinez – Battalion 7 (Excused)
- Trustee Chris Stine – Battalion 13 (Excused)
- Trustee Robert Steinbacher – Battalion 14 (Excused)
- Trustee David Ortiz – Headquarters 1 (Excused)
- Trustee Kurt Stabel – Headquarters 2 (Excused)
- James Dolan, Asst. Secretary
INVOCATION & Flag Salute
Andy Kuljis led the invocation and David Lowe led the flag salute.
RATIFICATION OF MINUTES
John Jacobsen stated that since they did not have a quorum for the Board meeting, they would ratify the Minutes of the Board of Trustees for the meeting held March 3, 2011 at the next Board meeting and the actions taken at this meeting would be ratified.
1) John President presented Juan Carlos Sanchez with a plaque recognizing him for his 10 years of employment with the Relief Association. He mentioned that Juan Carlos has done an excellent job in the Grapevine, Website and Marketing functions. He also thanked him for his efforts in leading the disposing of the remaining inventory of the closed Dalmatian store and in organizing the storage areas.
2) John Jacobsen referred to the Loughren Estate left to the Relief Association and mentioned that they have received a stipulation agreement that the LAFRA attorneys and the Conservator attorney will meet in the next month to discuss closing the case.
3) Jacobsen referred to the Grass Valley event and thanked Juan Albarran and Steve Domanski for handling the event. He stated it was a great turnout and indicated that members were pleased to be able to participate.
4) John Jacobsen informed the Board that they were involved in litigation for a large presumptive claim. He stated that they had a previous agreement with the City of Los Angeles to waive interest and penalty fees if they had paid the claim within a few weeks. He stated that since they had not settled payment on the claim, LAFRA is going to request interest and penalties on the claim which is a substantial amount.
5) John Jacobsen mentioned that the City is going to change the payroll system again and stated that he and Todd Layfer will attend an orientation on how it affects our organization.
6) John Jacobsen asked the Board to approve the following changes in Battalion Trustee positions. He suggested moving Chris Stine to Battalion 11, Gary Matsubara to Battalion 5 and Mark Akahoshi to Battalion 13.
Gene Bednarchik motioned to approve the changes to Trustee Battalion positions. Craig White seconded. There was no discussion or objections.
Motion carried to approve the changes to the Trustee Battalion positions as stated.
AUDIT COMMITTEE REPORT
Doak Smith introduced auditor, Tonnetta Conner from the Harrington Group. He indicated that she would present their final draft audit findings for the year 2010.
Ms. Conner provided some highlights of their meeting with the Audit Committee and stated that they reviewed financial statements, support for the information and internal controls for the organization. She mentioned that they had made a couple of comments on their audit however, nothing significant. These comments were recommendations related to advancements and bank reconciliations. She stated the Association’s financial statements, including the WODFF and Investment Funds all had a good year in 2010. She referred to the building purchase option and made some suggestions on tax implications if there were debt financing and rental income generated from the purchased building at some time in the future.
The committee recommends and I so move to accept the Harrington Group audit for 2010. There was no discussion or objections.
Motion carried to accept the Harrington Group audit for 2010.
INVESTMENT COMMITTEE REPORT
Garth Flint reviewed the performance of the investment portfolio and indicated that the stock market had an amazing quarter. He indicated this was primarily because corporate profits have been so strong.
Garth referred to the investment guidelines and indicated that they have spoken with the committee on making some changes with some of the investment managers. He reviewed the performance and composite as of 3/31/11. He mentioned that short term performance was under the benchmark but he is not too concerned because the 3 and 5 year performance has been strong and exceeded the benchmarks. He referred to the managers and indicated that Knightsbridge has had a tough year which affected their numbers. He indicated that Knightsbridge will have a lumpy performance for one year, but will do well over three years. He mentioned that Cohen & Steers performance for the past three years has not been that strong. He stated that they will place them on the “watch list” to see what is causing their underperformance. He indicated that they are not too concerned with Stralem’s underperformance in their three-year period because of their longer term performance. He mentioned that another manager on their watch list is Seligman because of their position in the 75th percentile on their 7-year performance. He stated that they have placed Artisan on their watch list because they had filed an IPO. He indicated that Columbia International will be removed as manager once they confirm with the Investment Committee next week. He mentioned that the PIMCO Total Return fund has done very well and outperformed the benchmark.
It was noted that next week the President and Investment Committee Chairman are travelling with Garth’s staff to visit and evaluate several potential new investment managers and some of the manager’s on the watch list.
VICE PRESIDENT’S REPORT
Juan Albarran thanked those that helped with the Grass Valley event. He stated that the tentative date for next year is the week of May 21, 2012 and indicated that the Administrative Committee had approved $10K in seed money.
EXECUTIVE DIRECTOR’S REPORT
1) David Smith reported that they had finalized negotiations with the Credit Union regarding the Dalmatian store lease. He also mentioned that in the last week, they sold around $17K in merchandise. He stated that they are looking at options to disposing the remaining merchandise which remains in the black Dalmatian van.
2) David Smith referred to the Hope for Firefighter event and mentioned that they now have 20 fire stations committed. He also indicated that the Hope Committee has gotten 11 food booth sponsorships and 15 muster teams.
Marketing & Development Report
Marlene provided an update on the Marketing Plan discussed at the Strategic Planning Meeting. She reported one of the links on the website had been completed and the second was in progress waiting for coordination with LAFD’s intranet. The snail mail opt-out option for members will be tackled in August. They will form a task force and determine what mailings are being sent and how they can best be communicated for response. She stated that they have expanded the use of video clips on the website and are covering various events. She indicated that they will add links for Death Notices/Funerals and Retirement dinners. She indicated that the campaign for collecting email addresses is underway for the month of June and mentioned that they will have a Wii Sports Console giveaway that was donated by Kevin Wright from Wells Fargo Financial Advisors. She also indicated that they will have another giveaway for an iPad in July. She stated that they are also in progress of improving the Grapevine format on the website and will hopefully have the 2010 issues by June 2011. She indicated that the Public Service Announcements are done and are waiting on the Southern California Broadcasters Association to set up a meet and greet with the T.V. stations to distribute the PSAs. She stated that they will send DVDs to the fire stations by October once they collect materials throughout the year. She indicated that Ana Salazar and Juan Carlos Sanchez have put together a list of items that would help with the FAQ section of the website as well as tutorials. She stated that she wanted to focus on corporate solicitation push in June and dedicate a lot of her time doing research and send letters. She referred to Planned Giving and indicated that they are preparing for those seminars and are working on developing additional marketing materials.
David Smith suggested that they appoint three Trustees to be advisors on the various task force items.
ADMINISTRATIVE COMMITTEE REPORT
David Peters presented the following motions.
The committee recommends and I so move to pay the usual and customary bills in the amount of $896,425.83. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $896,425.83.
The committee recommends and I so move to pay the professional fees in the amount of $97,535.84. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $97,535.84.
The committee recommends and I so move to approve up to $10K in seed money for the Grass Valley event in 2012. There was no discussion or objections.
Motion carried to approve up to $10K in seed money for the Grass Valley 2012 event.
David Peters reported that the Dalmatian white van has been sold for $4,000 and we received a release of liability.
The committee recommends and I so move to purchase a Tee Sign for $200 for the LAFD Fallen Firefighter Memorial Golf Tournament. There was no discussion or objections.
Motion carried to purchase a Tee Sign for $200 for the LAFD Fallen Firefighter Memorial Golf Tournament.
MEDICAL COMMITTEE REPORT
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 all applications to the Medical Plan.
RELIEF COMMITTEE REPORT
Doak Smith presented the following motion.
The committee recommends and I so move to pay:
The Sick & Injury benefits in the amount of $8,376.39
The Estate Planning benefit in the amount of $7,200,
The Relief Death Benefits in the amount of $45,000.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
The committee recommends and I so move for the expulsion of a member from the Relief Association for conduct unbecoming as a member and failure to repay debts owed to the Association. There was a request for a roll call vote of the Board of Trustees.
Battalion 10 Yes
Battalion 12 Yes
Pension 3 Yes
Battalion 15 Yes
Pension 1 Yes
Pension 2 Yes
Battalion 18 Yes
Battalion 6 Yes
Battalion 9 Yes
Battalion 17 Yes
Motion carried for the expulsion of a member from the Relief Association.
John Jacobsen stated that they will ratify all actions taken at the next Board Meeting.
Daniel L. Rangel
John D. Malone
Kennon R. McRee
Robert MacDonald Brewis
Robert L. Vivian
Wayne E. Tanner
James H. Williamson
Stanley R. Esselstrom
William L. Winchester
Ted L. Wolfe
Doak Smith read the names of members who recently passed and asked for a moment of silence from the Board.
Doak Smith presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $7,498.23 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $7,498.23 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF for April 2011
- ALEXANDRA JOHNSON IN MEMORY OF GLENN ALLEN
- JAMES R. CARSON IN GRATITUDE FOR THE WORK OF THE RELIEF ASSOCIATION
- RICHARD M. LAMBINE
- HOLLYWOOD POST #43 AMERICAN LEGION IN MEMORY OF GLENN ALLEN
- DANIEL LEON IN MEMORY OF ORVAL EVANS, JOSEPH HALL, ABEL BEDOYA AND GLENN ALLEN
- MARY V. DUDLEY IN MEMORY OF MY HUSBAND DARRELL DUDLEY WHO PASSED AWAY APRIL 2010
- ERNA M MINKOFF IN MEMORY OF ROBERT M. BREWIS
- STEVEN C. POPHOFF IN MEMORY OF CAPTAIN FRED MARTIN
- LOUISE K SENTENO IN MEMORY OF ESTHER WILLIAMS
- MICHELLE & DAVID BENNETT IN MEMORY OF ROBERT BREWIS FROM THE BENNETT FAMILY
- LOCK, STOCK AND BARREL INVESTMENTS LLC
- FRED & CHRIS MEISTER IN MEMORY OF ROBERT(BOB)BREWIS
- HELEN L. SCHULZ
- RICHARD L. WATTERS IN MEMORY OF WAYNE E. TANNER
- RICHARD L. WATTERS IN MEMORY OF GLENN ALLEN
- STEWART & PATRICIA CLARK IN MEMORY OF ROBERT M. BREWIS
- DINKO KLARIN IN MEMORY OF MICHAEL T. GARVIN
- DENNIS L. MENDENHALL IN MEMORY OF GLENN ALLEN
- DANA & NORMA LAINE IN MEMORY OF FRED MARTIN
- RAY & FAYE SMITH IN MEMORY OF GLENN ALLEN
- W JOHN HOLST IN MEMORY OF BILL HAYS
- BETTY V. LARSON
- KIM SMITH IN MEMORY OF ROBERT BREWIS
- RICHIE VALLIN CONTRIBUTION FOR 2010
- DUANE HOWARD IN MEMORY OF STANLEY R. ESSELSTROM
- FIRE STATION NO. 10 FROM THE FIRE EXTINGUISHER FUND
- JOANNE L HERBEL IN MEMORY OF ROBERT BREWIS
- BARBARA & MARC GARRISON IN MEMORY OF BOB BREWIS
- SHILOH FRANCO
- STEVEN D. LILIENTHAL IN MEMORY OF GLENN ALLEN
- LYLE W. MARVIN JR IN MEMORY OF JOE TUCK
- JAMES & CATHY SPOTO IN MEMORY OF ROBERT M. BREWIS
- GEORGE S. MC CAN IN MEMORY OF ROBERT BREWIS
- DAVID & ANN STINCHCOMB IN MEMORY OF PAT MCCULLOM
- MERILYN L. METZ IN MEMORY OF DON HICKMAN
- ANONYMOUS DONATION
- DARLEEN KELCH IN MEMORY OF PAT MCCULLOM
- CHESTER B. PORT IN MEMORY OF FRED MARTIN
- CHET D ADKINS IN MEMORY OF WILLIAM WINCHESTER
- ALICE BROWN IN MEMORY OF PAT MCCULLOM
- SAMANTHA P BUTLER IN MEMORY OF ROBERT M. BREWIS
- BARBARA A. BLAND IN MEMORY OF WILLIAM WINCHESTER
- HELEN MEGORDEN
- BETTY J WOODSON IN MEMORY OF WILLIAM WINCHESTER
- BRUCE NEWCOMB
- RALPH G. NELSON
The committee recommends and I so move to approve the assistance applications for surviving spouses and members. There was no discussion or objections.
Motion carried to approve the assistance applications for surviving spouses and members.
The committee recommends and I so move to approve the advancements for active members and surviving spouses. There was no discussion or objections.
Motion carried to approve the advancements for active members and surviving spouses.
SETTING OF DATES
1) IFEBP Washington Legislative Update – May 23rd & May 24th
2) Hope for Firefighters – June 2nd
3) LAFD Invitational Golf Tourn. – September 19th
4) SIIA – October 9th – October 12th
5) LAFRA Casino Night – October 22nd
6) IFEBP Annual Conf. – October 30th – November 2nd
7) LAFRA Open House – November 5th
1) Andrea Everett – May 27th Ports O’Call Restaurant (Kuljis)
2) Brian Sandwick – June 9th Los Angeles Police Academy (Cawdrey)
3) Craig A. Yoder – June 10th The Los Angeles Athletic Club (White)
4) Paul Silveri – June 26th @ 23030 Cherokee Ln., Saugus 91390(Peters)
5) Ralph Ramirez – July 16th Mediterranean Room Brookside Golf Club (Akahoshi)
6) Jimmy Hill – July 23rd Wilshire Grand Hotel (Tufts)
7) Robert “LL” Wilcox – August 9th Knollwood Country Club (Hedberg)
John Jacobsen entertained a motion to adjourn. Barry Hedberg so moved. Tim Larson seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 12:04am.
John Jacobsen, President