STAFF REPORT

Operations Committee, December 6, 2007

Board of Trustees Reappointment (FD08-02)
Reappointment of Bob Heater to the Local Fireman’s Relief Fund Board of Trustees

Speaker:  Chief Allan Cain

 

From:  Allan Cain, Fire Chief
Prepared by:  Allan Cain, Fire Chief
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

REVIEW:  In 1907, the General Assembly established the State Relief Fund for firefighters.  Cities, towns, sanitary districts, rural fire districts, and other political subdivisions (hereafter referred to as "cities") with an organized fire department may be eligible to receive funds to support a local firemen's relief fund.  Every insurance company doing business in a fire district is required to report to the secretary of revenue each year an account of all premiums collected and received from all fire and lightning insurance business done within that district and pay the tax levied (G.S. 105- 228.5(d)(4).

The Fireman’s Relief Fund may be used for the following purposes:

(1)    To safeguard any fireman in active service from financial loss occasioned by sickness contracted or injury received while in the performance of his duties as a fireman.

(2)    To provide a reasonable support for those actually dependent upon the services of any fireman who may lose his life in the fire service of his town, city, or state, either by accident or from disease contracted or injury received by reason of such service. The amount is to be determined according to the earning capacity of the deceased.

(3)    (2a) To provide assistance, upon approval by the Secretary of the State Firemen's Association, to a destitute member fireman who has served honorably for at least five years.

(4)    To provide for the payment of any fireman's assessment in the Firemen's Fraternal Insurance Fund of the State of North Carolina if the Board of Trustees finds as a fact that said fireman is unable to pay the said assessment by reason of disability.

(5)    To provide for benefits of supplemental retirement, workers compensation, and other insurance and pension protection for firemen otherwise qualifying for benefits from the Firemen's Relief Fund as set forth in Article 85 of this Chapter.

(6)    To provide for educational benefits to firemen and their dependents who otherwise qualify for benefits from the Firemen's Relief Fund. Out of that law was written a law establishing a Local Relief Fund so that it could be administered to on a local level.  The following is a summary of the law that outlines the make up and duties of the local branch of trustees.

To be eligible to participate, a city must (a) have a fire department under the control of the mayor or city governing body, (b) have in serviceable condition fire equipment valued at $1,000 or more, and (c) enforce the fire laws to the satisfaction of the insurance commissioner (G.S. 58-84-5).

In each eligible city, a five-member board of trustees administers the relief fund.  Two of the trustees are elected by members of the local fire department; two are named by the Mayor and city governing body, and one by the insurance commissioner.  The chief of the local fire department is a nonvoting ex‑officio member of the board, except where he is elected as a regular member.  The trustees select their own chairman, secretary, and treasurer; the latter two positions may be held by the same person.  The treasurer shall give a good and sufficient surety bond in a sum equal to the amount of moneys in his hand, to be approved by the Commissioner of Insurance.

The insurance commissioner pays three percent of the funds collected from the fire insurance companies to the treasurer of the State Firemen's Association.  An additional two percent goes to the State Department of Insurance.  The remaining 95 percent is turned over to the various cities, towns, and other political subdivisions, which in turn pay the funds to the treasurers of the respective local relief funds (G.S. 58-84-25).

Boards of trustees are required to keep records of all funds received and disbursed and to render reports to the State Firemen's Association.  Each year, the Cary Fire Department Local Fireman’s Relief Fund disperses a supplemental retirement benefit to its retired firefighters.

Currently, Bob Heater serves as Chairman of the Cary Fire Department Relief Fund Board of Trustees.  He is a citizen of the Town of Cary and Senior Vice President with the N.C. State Employee’s Credit Union.  Mr. Heater has served on the Cary Fire Department Local Relief Fund Board of Trustees since January 2000. 

In order to meet the requirements of the General Statutes we ask that you re-appoint Mr. Bob Heater, of 201 Tweed Circle, Cary, NC 27511, to the Board of Trustees. If re-appointed, Mr. Heater would serve a term for a two-year period ending December 31, 2009.

Fiscal Impact:  There is no fiscal impact with this action.

Staff Recommendation:  Staff recommends that Council re-appoint Mr. Bob Heater to the Cary Fire Department Local Relief Fund Board of Trustees for a two-year term beginning January 1, 2008 and ending December 31, 2009.