MINUTES OF THE BOARD OF TRUSTEES
September 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 10:33 a.m.
ROLL CALL
MEMBERS PRESENT:
- David T. Marino, President
- Robert Steinbacher, Vice President
- Andrew Kuljis, Secretary
- Trustee John Jacobsen – Battalion 2
- Trustee Juan Albarran, Battalion 3
- Trustee Chris Hart – Battalion 4
- Trustee Tim Larson – Battalion 6
- Trustee Doak Smith – Battalion 9
- Trustee David Peters – Battalion 10
- Trustee Gary Matsubara – Battalion 11
- Trustee Chris Stine – Battalion 13
- Trustee Michael Overholser – Battalion 14
- Trustee Steven Domanski – Battalion 15
- Trustee Francisco Hernandez – Battalion 17
- Trustee Kurt Stabel – Headquarters 2
- Trustee Tom Stires – Pension 2
- Trustee Ralph Brownell – Pension 3
- David Ned Smith – Executive Director
- Controller – Todd Layfer
MEMBERS ABSENT:
- Trustee James Coburn – Battalion 1 (Excused)
- Trustee Mark Akahoshi, Battalion 5 (Excused)
- Trustee Gene Bednarchik – Battalion 7 (Excused)
- Trustee Craig White – Battalion 12 (Excused)
- Trustee Dennis Mendenhall – Battalion 18 (Excused)
- Trustee David Ortiz – Headquarters 1 (Excused)
- Trustee David Lowe – Pension 1 (Excused)
GUESTS:
- Lyle Hall, Retired UFLAC President
INVOCATION & Flag Salute
Tim Larson 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 August 5, 2009. David Peters so moved. Gary Matsubara 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 August 5, 2009.
ELECTION OF 2010 PRESIDENT & VICE PRESIDENT
Robert Steinbacher assumed Chair of the meeting and asked Trustees for nominations for the President and Vice President positions for 2010.
Tim Larson motioned to nominated David Marino for President for 2010. Gene Bednarchik seconded. There were no objections. 15 voted in favor and 1 abstained.
Motion carried to elect David Marino as the LAFRA 2010 President.
David Peters motioned to nominate John Jacobsen for Vice President for 2010. Chris Hart seconded. There were no objections. 16 voted in favor.
Motion carried to elect John Jacobsen as LAFRA Vice President for 2010.
INVESTMENT COMMITTEE REPORT
1) Kurt Stabel addressed the topic of forming a Building Sub-Committee and asked those interested to let him know so that they may begin research and report back to the Board. The goal of this committee will be to outline parameters for LAFRA’s building needs. The reasoning behind this committee will be to first decide the area, size and general desires of the association so when an opportunity does arise we can proceed to acquire real estate again as part of our investment portfolio. It is anticipated that the commercial real estate market may bottom out sometime in 2010.
2) Kurt Stabel mentioned the topic of the Planned Giving program we are developing and how it may be done in conjunction with the Estate Plan Benefit. He indicated that they will produce an informal list of estate planning attorneys in the Southern California area that could provide services to Relief members. There was discussion on educating the members of the importance of Trusts and Wills. Suggestions were made on the potential of placing articles in the Grapevine.
3) Kurt presented a spreadsheet containing current data on our investment asset allocation plan and an updated allocation model which had been approved by the Board last Fall. He stated that the Investment Committee had decided to reduce U.S. Large Cap Equity which would be done by reducing the investment in Stralem. He indicated that the current value will be brought down over time at pre determined intervals to avoid second guessing and attempting to time the market. He also indicated that they were going to trim down our exposure to the PIMCO Total Return Fund. In addition the goal is to put cash in the investment account to work. The committee has worked toward implementing the revised plan for some time, however they wanted to make sure that the plan is amenable to the Board.
Kurt referred to our current exposure to Emerging Markets via two mutual funds and mentioned that they will continue to implement previously set allocations targets in this area. Concurrently we will be scaling down exposures to PIMCO and U.S Large Cap Growth managers. He mentioned that the committee would select new money managers in two arenas; Real Estate using Real Estate Fund (RIETS) and Commodities. He mentioned that they have discussed placing money with a mutual fund that is sub-advised by another manager. He directed Garth to go direct to the sub-advisor, Gresham, which may allow the association to save money on fees. He indicated that they would have two managers within the commodities space to reduce volatility exposure to one manager.
Kurt stated that the updated asset allocation plan’s main goal is to decrease values in the U.S. Large Cap Growth component and also with PIMCO. He also indicated that they should choose another International manager to reduce manager risk exposure because of the targeted increase in the asset class. He indicated that the reason for going into REITS and commodities is because equity markets that have sold off tremendously have substantially recovered and there are concerns that inflation may accelerate in the future due to macroeconomic trends. He stated that looking ahead U.S. equity markets have slower growth expectations verses international markets. International and Emerging markets are expected to lead the economic recovery going forward, which is why they chose to increase investments in these asset classes. He referred to the importance of having exposure to real assets and mentioned the ballooning U.S. deficit and printing of U.S. dollars is expected to depreciate our currency, in light of this it is expected that commodities value will increase. He also commented that real estate is a great hedge against inflation.
The committee recommends and I so move to approve the presented mix of allocations. There was no further discussion or objections.
Motion carried to approve the presented mix of allocations.
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.
David Peters informed that the Federal Government is requiring Social Security numbers from the spouses of LAFRA members. He reported that they have received 570 out of 700 to date and indicated that those who do not submit the social security numbers will be suspended from the medical plan as of January 1, 2010. He stated that the Federal Government will imply a fee of $500 per member per day as penalty. He also mentioned that the LAFRA staff is now making direct contact to members to obtain the information.
David Peters informed that Open Enrollment materials are currently being printed and should be distributed by September 27th.
VICE PRESIDENT’S REPORT
Robert Steinbacher referred to the IFEBP Annual Conference in Orlando, FL and indicated that he has booked four townhouses. He asked that each Trustee make their flight reservations. He also reminded Trustees to submit their certificates of completion to the LAFRA office.
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 $625,113.41. There was no discussion or objections.
Motion carried to pay the usual and customary bills in the amount of $625,113.41.
The committee recommends and I so move to pay the professional fees in the amount of $3,852.60. There was no discussion or objections.
Motion carried to pay the professional fees in the amount of $3,852.60.
John Jacobsen provided an update on the status of the website and indicated that the staff is in the process of working through the final bugs and training. He stated that they continue to shoot for the end of September.
GOLF COMMITTEE REPORT
Tim Larson informed the Board that he, David Ned and Juliet had visited three golf courses; Braemar, Angeles National and Mountaingate. There was discussion on the pros and cons of each facility, course and restrictions. He recommended that they have the 2010 golf tournament at Mountaingate. David Smith mentioned that by going with Mountaingate, we will save on costs but be able to keep the sponsorship price the same because of the high quality of Mountaingate. He stated by doing this, there would be a magnitude net increase of about $20,000. Marlene added that the Mountaingate community has also donated substantially in the past and are willing to support the WODFF and LAFRA.
The committee recommends and I so move to approve the Mountaingate Golf Course for the next 2010 LAFD Invitational Golf Tournament. There was no further discussion or objections.
Motion carried to approve the Mountaingate Golf Course for the 2010 LAFD Invitational Golf Tournament.
David Smith indicated that they have discussed moving the time of the golf tournament from July to the end of September as long as it does not conflict with the LAFD Golf Club event. He stated that by moving the LAFD Invitational tournament, it would provide many benefits.
RELIEF COMMITTEE REPORT
Gary Matsubara 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 $23,133.96,
Estate Planning benefits in the amount of $2,398,
Relief Death benefits in the amount of $27,000,
Life & Accident withdrawals in the amount of $3,125.
There was no discussion or objections.
Motion carried to pay the above Relief benefits.
MEMORIALS
Thorval J. Miller
Robert S. Mark
Joe M. Vitale
Marvin W. Morris
Edward C. Bakula
James W. Hoggan
Gary Matsubara read the names of members who recently passed and asked for a moment of silence from the Board.
ASSISTANCE COMMITTEE
Gary Matsubara presented the following motions.
The committee recommends and I so move to accept the donations in the amount of $12,149 to the Widows, Orphans & Disabled Firemen’s Fund. There was no discussion or objections.
Motion carried to accept the donations in the amount of $12,149 to the Widows, Orphans & Disabled Firemen’s Fund.
Donations to WODFF August 2009
- GENEVIEVE SPAINHOWER IN GRATITUDE FOR THE WORK OF OUR ORGANIZATION
- CITIZEN PICTURES LLC FIRE STATION 69 FOR THE PANCAKE BREAKFAST
- JACK M. DAVIS IN GRATITUDE FOR THE BACK DOOR RAMP
- GLENN JAYNES FOR OUR DEDICATION TO THE FIREFIGHTER FAMILIES IN NEED
- VALERIE LAWRENCE IN LOVING MEMORY OF MY HUSBAND JOHN E. LAWRENCE
- MARJORIE J WILLIAMSON IN GRATITUDE FOR THE DURABLE MEDICAL EQUIPMENT
- REY T. ROJO IN MEMORY OF DEPUTY CHIEF WILLIAM “BILL” GOSS
- REY T. ROJO IN MEMORY OF BATTALION CHIEF CLARENCE “CHUCK” MERRIMAN
- HOWARD L. KELLEY IN MEMORY OF NANCY & MARGIE KELLEY
- REBECCA M. STANIS IN HONOR OF MY HUSBAND WILLIAM D. STANIS II
- MARY GRACE VITALE IN MEMORY OF MY HUSBAND JOE VITALE
- DONALD L. CATE IN MEMORY OF YOUR WIFE LOIS L. CATE
- FIRE STATION NO. 39 FROM OUR FS-39 REUNION
- THERESA KOSAK IN MEMORY OF MY FRIEND JIM HOGGAN
- AUDREY C. HALEY IN MEMORY OF BILL GOSS
- NEIL E. BULLOCK IN MEMORY OF JACK QUINLAN & DALE BOOTH
- RICHARD L. WALTERS IN MEMORY OF JAMES W. HOGGAN
- BARBARA L. AWERKAMP IN MEMORY OF J. S. DELANEY
- WILLIAM C. WAKELAND FOR GRATITUDE TO LAFRA
- BARBARA J. BROWN IN MEMORY OF MY HUSBAND WILLIAM G.(BILL) BROWN WHO PASSED AWAY 07/01/2002
- EARL J. HEINRITZ IN MEMORY OF LOUIS R. NOWELL
- INTERLINE IN MEMORY OF JUNIOR L. PARKER
- LARRY JAY IN MEMORY OF JUNIOR LEON PARKER
- MICHAEL T. MITCHELL IN MEMORY OF JUNIOR PARKER
- BETTY V. LARSON
- ROBERT J. BAKER IN MEMORY OF MY MOTHER KATHLEEN BAKER WHO PASSED AWAY AUGUST 12, 2009
- LES SCHWARTZ IN MEMORY OF CHARLES C. DODGE
- JUDY GATENA FROM THE TONER CARTRIDGE RECYCLING PROGRAM
- ARMANDO NUNES
- TERRY N. QUINLAN IN MEMORY OF MY HUSBAND JOHN R. QUINLAN
- RALPH N NELMAN IN MEMORY OF MY WIFE JEAN E. NELMAN
- MARIE D SHAFER
- ROBERT P LUTZ IN MEMORY OF WOODY HASKIN
- JERRY M. SCHNITKER IN MEMORY OF JOHN R. QUINLAN
- JOANNA B GREENSPON IN MEMORY OF ELMER NORDQUIST
- EDWARD T. CHILSON IN MEMORY OF DALE BOOTH
- HARRY CARLSON IN MEMORY OF A GOOD FRIEND JIM HOGGAN
- BARBARA RAY BENUSKA IN MEMORY OF JUNIOR L. PARKER
- CYPRESS TENNIS CLUB IN MEMORY OF JR. LEON PARKER
- DON L TOLLEY IN MEMORY OF JOHN HEILMAN
- ROBERT P. LUTZ IN MEMORY OF ORLEN WHITSON
- ROBERT P. LUTZ IN MEMORY OF WOODY HASKIN
- ELIZABETH SWINEFORD IN MEMORY OF JUNIOR LEON PARKER
- LEONARD COBB IN MEMORY OF LOIS CATE
- GAIL K. DESCHAMPS IN MEMORY OF CHARLES DODGE
- JERRY M SCHNITKER IN MEMORY OF JUNIOR PARKER
- BRAD BARTON IN MEMORY OF WALTER M. GREENLEAF, JR.
- TARA BOHAN PRODUCTIONS INC ON BEHALF OF A SUPPORTER OF THE NYFD
- JACK BENNETT IN MEMORY OF A GOOD FRIEND CHIEF JUNIOR L. PARKER
- JEANNINE T YAMAMOTO IN MEMORY OF SEYMOUR KUBERNICK
- SUSAN SHOEMAKER IN MEMORY OF CHARLES CLARK DODGE
- NINA S. GRODY IN MEMORY OF BEVERLY CASE
- WILLIAM C. WAKELAND
The committee recommends and I so move to assist:
A widow with continued medical premiums with a six month review,
A widow with medical premiums with a six month review,
A widow with $400 per month with a six month review,
A widow with $1,200 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 widow with medical premiums with a six month review,
A widow with medical premiums with a six month review,
A widow with $750 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 $500 per month plus medical premiums with a six month review,
A widow with $1,400 per month plus medical premiums with a six month review,
A widow with continued medical premiums for ten months only,
A member with continued $1,000 per month with a six month review.
There was no discussion or objections.
Motion carried to approve the above assistance as stated.
EMERGENCY ADVANCEMENTS
Gary Matsubara presented the following motion.
The committee recommends and I so move to advance:
A member with past due medical premiums with a six month review,
A member with $10,251 for back house payments,
A surviving spouse a reversed mortgage of $3,000 per month with a six month review,
A surviving spouse a reversed mortgage of $500 per month with a six month review,
A surviving spouse a reversed mortgage of $2,500 per month plus medical premiums with a six month review.
There was no discussion or objections.
Motion carried to approve emergency advancement as stated.
EXECUTIVE DIRECTOR’S REPORT
David Smith provided an update to the relocation of the Dalmatian store and mentioned that work has started on the 1st floor. He indicated that the tentative move date is scheduled for November 15th.
David Smith mentioned that the LAFCU Chili Cook-off is scheduled for the same day as the LAFRA Open House. He asked for a volunteer to have a booth to support the Chili Cook-off. Steve Domanski stated he would consider taking the lead for LAFRA at the Cook-off.
PRESIDENT’S REPORT
1) David Marino presented the Benefits Brochure that summarizes Relief Member’s benefits. He indicated that the brochures are currently being printed on quality paper and should be ready within the next few weeks.
2) David Marino mentioned the two L.A. County firefighters who passed away during the fires and mentioned that the Credit Union has set up a link on their website for the Family Foundation in the names of the firefighters. He mentioned that LAFRA has received some donations for those firefighters and indicated that they would save them and give them to the County’s Relief Association.
GRAPEVINE COMMITTEE REPORT
Chris Hart mentioned that they have in the past, been soliciting new printers to save on costs. He indicated that currently, they are spending $11,000 to $13,000 per month compared to the $20,000 per month cost two years ago. He suggested looking into what it costs the Grapevine to place full page ads for certain special events which may show a decrease in loss per month.
OLD BUSINESS
Juan Albarran referred to the motor-home that had been donated and asked what they were going to do with the sale of the vehicle. David Marino indicated that they were going to produce flyers to pass out at the fire stations. Kurt Stabel suggested placing the vehicle on ebay motors and auction off to the highest bidder and which would be much easier. David Smith mentioned that LAFRA obtains a non-profit ebay account. It was agreed to implement the e-bay option.
SETTING DATES
1) Colorado Springs Memorial – September 17 – 20
2) SIIA Conference – September 21 – 24
3) Wharton Investment Conference – Sept. 20th – 25th
4) IFEBP Annual Conference – November 8 – 11th
5) Open House – November 21st
6) Relief Holiday Party ESPN Zone – December 5th
7) Strategic Planning Conf. – January 26th – 27th
RETIREMENT DINNERS
1) Thomas Prange – September 20th Knollwood Country Club
2) George E. Lavallee – September 23rd Knollwood Country Club
3) Steward Premmer – September 23rd George Petrelli’s Steak House
4) David Fair – October 7th Ports O’Call Restaurant (Andy)
5) Thomas C. Czubek – October 7th Los Angeles Police Academy
6) Douglas Barry – October 18th Milennium Biltmore Hotel (Andy/Steinbacher)
7) lan P. Barrios – October 23rd Renaissance Agoura Hills Hotel
8) Armando Martinez – October 25th Woodland Hills Country Club
ADJOURNMENT
David Marino entertained a motion to adjourn. Gary Matsubara so moved. Chris Stine seconded. There was no discussion and no objections.
Motion carried to adjourn.
The Board of Trustees meeting adjourned at 12:05pm.
David Marino, President