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2012 SPJST Convention Proceedings11.19.12_Layout 1 11/19/12 10:55 AM Page 3

PROCEEDINGS of the 31st Convention of the SPJST

JUNE 11 - 13, 2012 KILLEEN, TEXAS


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TABLE OF CONTENTS Convention Minutes Key to Abbreviations Contained in Proceedings..................................................1 Monday Morning - Session 1, 8:30 a.m. - 10:50 a.m...........................................1 Monday Morning - Session 2, 11:20 a.m. - 11:35 a.m.........................................4 Monday Afternoon - Session 3, 12:30 p.m. - 3:00 p.m........................................5 Monday Afternoon - Session 4, 3:35 p.m. - 5:35 p.m........................................10 Tuesday Morning - Session 5, 8:09 a.m. - 9:35 a.m. ........................................13 Tuesday Morning - Session 6, 10:00 a.m. - 11:55 a.m. .....................................16 Tuesday Afternoon - Session 7, 1:00 p.m. - 2:20 p.m. ......................................19 Tuesday Afternoon - Session 8, 2:55 p.m. - 3:30 p.m. ......................................23 Wednesday Morning - Session 9, 8:05 a.m. - 10:10 a.m..................................24 Wednesday Morning - Session 10, 11:17 a.m. -12:00 p.m................................27 Wednesday Afternoon - Session 11, 12:45 p.m. - 12:55 p.m.............................28 Wednesday Afternoon - Session 12, 3:00 p.m. - 4:00 p.m. ...............................28

Appendix List of Delegates ................................................................................................34 Congratulatory Letters and Proclamations.........................................................37 President’s Pre-Convention Report ....................................................................59 Vice President’s Pre-Convention Report............................................................65 Secretary-Treasurer’s Pre-Convention Report ...................................................66 Financial Secretary’s Pre-Convention Report....................................................69 Director’s Pre-Convention Report .....................................................................75 Finance Committee’s Pre-Convention Report ...................................................83 Recommendations of Finance Committee as Adopted ......................................86 Insurance Committee’s Pre-Convention Report.................................................89 Publication Committee’s Pre-Convention Report..............................................90 Resolution Committee’s Report ........................................................................93 Recommendations of the Convention Order Committee...................................94 Special Structure Study Committee Report........................................................98 Supplemental Report of the Secretary-Treasurer.............................................101 Supplemental Report of the Financial-Secretary..............................................102 By-Law Committee’s Recommendations.........................................................102


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Killeen Mayor Dan Corbin, who welcomed everyone to the city and issued a Proclamation naming June 11, 12, and 13, 2012 as “SPJST Days”. SLP Brian Vanicek (24) accepted the proclamation on behalf of the SPJST. Supreme Lodge Vice President (SLVP) Gene McBride (200) gave a memorial tribute to the departed members and leaders who have passed away since the 2008 SPJST Convention. SLP Brian Vanicek (24) introduced the six convention secretaries for the 31st SPJST Convention: Lead secretaries—Annie Vahalik (4) and Regina House (202). Secretaries for the Red Team also include Debbie Galler (66) and Lisa Blum (17). Secretaries for the Blue Team also include Shirley Hoelscher (24) and Vonda Smesny (91). SLP Brian Vanicek (24) said the Supreme Lodge consists of a president, vice president, secretary-treasurer, financial secretary, and seven directors who are responsible for the administration of all business affairs of the Society according to the By-Laws as

MONDAY MORNING - SESSION 1 8:30 a.m. - 10:50 a.m. June 11, 2012 The 31st Convention of the SPJST was called to order by Supreme Lodge President (SLP) Brian Vanicek (24) at 8:30 a.m. SPJST District IV Director Billy Rollwitz (49) and Jerry Sijansky (79) posted the colors. Eleven-year-old Amya Rodriguez (24) sang the National Anthem, and Brother Fred Buri (88) sang the Czech National Anthem, “Kde Domov Muj”. Bessie Petr (84) led the Pledge of Allegiance, and SPJST Secretary-Treasurer Leonard Mikeska (200) offered a Convention prayer. SPJST SLP Brian Vanicek (24) welcomed everyone to the 31st Convention of the SPJST. Supreme Lodge Chairman, Donnie Victorick (9) issued words of welcome to the delegation. He challenged the delegates to unite, and make the best possible decisions that will carry the SPJST forward for the next four years. SLP Brian Vanicek (24) introduced

Key to Abbreviations Appearing in Proceedings BLCC: By-Law Committee Chairman CC: Convention Chairman CCC: Credentials Committee Chairman CHMGC: Czech Heritage Museum and Genealogy Center CVC: Convention Vice Chairman DYC: District Youth Counselors ENC: Education and Nature Center (at Cooper Farm) FAC: Fraternal Activities Coordinator FCC: Finance Committee Chairman ICC: Insurance Committee Chairman PCC: Publication Committee Chairman RCC: Resolution Committee Chairman SLP: Supreme Lodge President SLS-T: Supreme Lodge Secretary-Treasurer SLVP: Supreme Lodge Vice President SSC: Special Structure Committee SSCC: Special Structure Committee Chairman TCGS: Texas Czech Genealogical Society TOCA: Texans of Czech Ancestry YAD: Youth Achievement Day YL: Youth Leaders

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Lonnie Lostak (139) District VI-Rita Vanek (151), and District VII-Valerie Barta (202). SLP Brian Vanicek (24) introduced the Credentials Committee: Chairman Frank Pajestka, Jr., (80), Diana Engelke (66), and Yvonne Marcaurele (30). Credentials Committee Chairman (CCC) Frank Pajestka, Jr. (80) asked for a motion that Jennifer Davidson (87) be seated as a delegate. A motion was made by Ardis Bacak (40) and was seconded by John Engelke (66). Bob Bayer (107) called for the question. A vote by show of hands was taken and motion passed. CCC Frank Pajestka, Jr. (80) asked for a motion that Alice Jochen (142) be seated as a delegate tomorrow due to a death in the family. A motion was made by Patricia Bruce (88) and seconded by Helen Hegwood (88). A vote was taken by show of hands and the motion passed to seat Alice Jochen (142) tomorrow. CCC Frank Pajestka, Jr. (80) stated that the following changes in delegates have taken place: District I—Lodge 13 change Wesley Ford to Doris Ford; no change in votes. District II—Lodge 20--add Emily Tischler. Vote changes for Lodge 20 are: Emily Tischler-134, Norma Cavanaugh-135, and Edward Stoll III-134. Lodge 47—vote changes are: Edwin Pechal-108, Leroy Dana-107 District III—Lodge 25-James Holahan, Jr. not seated. Vote changes are: Kay Lynn Kovar-122, leaving all other delegates from Lodge 25 at 117. Lodge 84—James Liska replaced by Anne Cowan, no change in votes. District IV—Lodge 73-no representation. Lodge 76-no representation. Lodge 219Alejandro Rivas replaced by Bertha Rodriguez. Lodge 219-no changes to votes. District V—Lodge 88-not seated Esther Heinsohn, Margie Anders, Emil Kuropata, Clara Broz, and John Broz. Vote changes are: Patricia Bruce-183 and other delegates 163 votes each. Lodge 142-Alice Jochen will be seated on Tuesday with vote changes for Monday being Mary Ann Kieschnick-186, Dennis Hermis-186, and Keith Kieschnick187. Lodge 191—no representation. District VI—Lodge 40-not seated Norma O’Canas. Vote changes are Vlasta Bartos 128, remaining delegates from Lodge

approved by the delegates. The following Supreme Lodge Officers were introduced: Vice President Gene McBride (200), Secretary-Treasurer Leonard Mikeska (200), Financial Secretary Roy Vajdak (88), District I Director and Supreme Lodge Chairman Donnie Victorick (9), District II Director Bobby Wuensche (48), District III Director Johnnie Krizan (6), District IV Director Billy Rollwitz (49), District V Director Larry W. Pflughaupt (88), District VI Director and Supreme Lodge Vice Chairman Mike Ahlstrom (32), and District VII Director Bob Bayer (107). Also introduced was Vestnik Editor/Director of Communication Melanie Zavodny (246). SLP Brian Vanicek (24) welcomed the delegates, members and distinguished guests in both the English and Czech language. He thanked everyone from the Home Office Staff for coordinating the mechanics of the convention. SLP Brian Vanicek (24) thanked everyone who attended the “Howdy Party”, and SPJST Lodge 88, Houston Czech Concert Orchestra for providing an enjoyable musical backdrop for the party. SLP Brian Vanicek (24) announced that the SPJST is observing the 115th anniversary of the founding of SPJST in Fayette County in 1897. The ideals, energy, spirit, and promise of the SPJST is still alive and strong today, such as in the Education and Nature Center (ENC) at Cooper Farm, where this past weekend over 100 youth and adults attended the Leaders-in-Training (LIT) Retreat. He also thanked the Czech Heritage Museum for their display in the lobby. The convention adjourned for pictures at 8:55 a.m. The convention reconvened at 9:45 a.m. with an announcement from District VII Director Bob Bayer (107) that this past Sunday, longtime member Melba Novasad (202) passed away. She was instrumental in bringing the three Jourdanton lodges together and served many years in several officer capacities. SLP Brian Vanicek (24) appointed the following to the Tellers Committee: District I-Debbie Kostelka (13), District II-James Skrabanek (47), District III-Milton Peterson (6), District IV Arnie Rivera (219), District V-

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speak clearly when approaching the microphone and to include name, lodge, and district number. He stated he would conduct the meeting in a fair and impartial manner and that delegates have a great task ahead of them. He asked delegates that when casting votes to ask themselves, “Is this in the best interest of the SPJST?” SLP Brian Vanicek (24) opened the floor for nominations for Convention Vice Chairman. Jerry Milan (154) nominated Glenn Kaminsky (28). Charles Munday (189) nominated Susan Skrabanek (17) who declined the nomination due to being in the same district as CC Donnie Victorick (9). Barbara Macek (24) nominated Leonard Jansa (160). Rita Spinn (80) moved that nominations cease; seconded by Keith Kieschnick (142). Motion passed by show of hands. A vote by secret ballot was conducted for Convention Vice Chairman. CC Donnie Victorick (9) gave directions for completing paper ballots: Write lodge number, number of votes, and candidates’ name, then fold once, and drop in your district teller box. SLP Brian Vanicek (24) announced statistics for the 31st SPJST Convention as follows: Sales Representatives that are delegates-61; Lodge Officers that are delegates152; average age of delegates-64 years old; oldest delegate-Leander Pflughaupt (88) 89 years old; delegates over age 65-128; delegates between 50 and 65 years of age-99; delegates under 50 years old-48. It was determined that the youngest delegate is Kyle Skrabanek (17) who is 23 years old. He also recognized Appa Hargiss (154) who at the age of five represented the SPJST on a Dr. Pepper can and who is now present as a delegate at this Convention. SLP Brian Vanicek (24) recognized delegates that have attended previous conventions. Frank Klinkovsky (47) was recognized for having attended the past 14 conventions. CC Donnie Victorick (9) recognized delegates who are multi-generational in addition to those attending with siblings. SLP Brian Vanicek (24) recognized Bessie Petr (84) for her 60 years of service to the youth program. He also recognized Youth Leaders (YL) and District Youth Counselors (DYC).

40 with 126 votes. District VII—Lodge 79-not seated were Dorothy McCoy, Jill Sijansky, Ronald Janota, and Jessica Janota. Votes were evenly distributed between remaining delegates at 218. Lodge 133-Valerie Popp was replaced by Michelle Popp-Click. Kelsey Trinidad not seated. Vote changes are Jarolyn Popp 150 and other Lodge 133 delegates at 148 each. CCC Frank Pajestka, Jr. (80) reported the following representation: District I 14 lodges, 27 delegates, 3627 votes District II 15 lodges, 62 delegates, 7395 votes District III 12 lodges, 50 delegates, 6490 votes District IV 8 lodges, 18 delegates, 2280 votes District V 8 lodges, 44 delegates, 7746 votes District VI 14 lodges, 35 delegates, 4452 votes District VII 8 lodges, 23 delegates, 3239 votes Totals lodges—79; delegates—259; votes—35,229 CCC Frank Pajestka, Jr. (80) moved to seat all delegates; seconded by Mary Steinman (154). Motion passed and all delegates were seated. Tellers Committee members were called forward by SLP Brian Vanicek (24) to administer the Oath of Secrecy. The delegates were asked to assist the Tellers Committee by not asking compromising questions. SLP Brian Vanicek (24) opened the floor for nominations for Chairman of the Convention. Patsy Koslovsky (47) nominated Donnie Victorick (9). Jerry Milan (154) moved that nominations cease and that Donnie Victorick (9) be elected CC by acclamation. Bettie House (202) seconded. Motion passed by show of hands. Convention Chairman (CC) Donnie Victorick (9) thanked the delegates for their confidence and stated it would be an honor and pleasure to serve as Chairman for the Convention. He encouraged delegates to

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MONDAY MORNING – SESSION 2 11:20 a.m. -11:35 a.m., June 11, 2012

Other announcements made by SLP Brian Vanicek (24) included the buffet breakfast at the Shilo Inn from 6-8 a.m.; tonight will be a “free” evening; Keynote Speaker at the banquet on Tuesday will be John Sharp (97), Chancellor of Texas A&M University System; congratulations to Editor/Director of Communication Melanie Zavodny (246) for an excellent job on the Convention Program Book; Frank Klinkovsky (47) was recognized as an Honorary Supreme Lodge Officer. Larry W. Pflughaupt (88) related a story about the Seven Wonders of the World, and how the greatest wonders of the world are sometimes things that are not made by human hands, but are things such as seeing, hearing, touching, tasting, feeling, laughing, and loving. He also read the SPJST Youth Club Motto. SLP Brian Vanicek (24) also announced: the SPJST Youth Club Motto was written by Justin Engelke (66); everyone is invited to attend the District Youth Achievement Days (YAD) and the State Youth Achievement Day (YAD) held the first weekend of August in Temple; everyone is also invited to attend the 6th Annual Corpus Christi Getaway held the second weekend of August. Larry Elzner (79) announced the addition of the golf tournament at the Corpus Christi Getaway. Everyone is invited to participate. Roxanne Bertrand (107) announced that the Czech Heritage Museum and Genealogy Center will be selling raffle tickets at the Corpus Christi Getaway and are also selling yellow raffle tickets this week to benefit the museum. District VII Director Bob Bayer (107), as the In-House Audit Committee Chairman, stated that he appreciated Brother Roy Vajdak (88) for turning the Society around and helping to condense and do things in a shorter way. ENC Director Barbara Linney-Gonzales (88) announced the capital campaign, “Growing for the Future”, and invited everyone to support the ENC. A recess was taken at 10:50 a.m.

CC Donnie Victorick (9) reconvened the Convention at 11:20 a.m. He reiterated the importance of completing ballots correctly— please include lodge number and number of votes on each ballot. Some ballots could not be counted for the election of the Convention Vice Chairman because they were not properly completed. SLP Brian Vanicek (24) corrected his previous statement relating to the youth club motto. The motto was actually written by Traci Dobecka (6), not Justin Engelke (66). He then announced the results of the election for Convention Vice Chairman. Glenn Kaminsky (28) received 15,814 votes, and Leonard Jansa (160) received 18,935 votes. SLP Brian Vanicek (24) congratulated Leonard Jansa (160) for winning the election. Convention Vice Chairman (CVC) Leonard Jansa (160) thanked the delegates for their support and encouraged everyone to have a good convention. CCC Frank Pajestka, Jr. (80) corrected the number of votes for District II, Lodge 47. They are now as follows: Edwin Pechal with 108 votes, everyone else with 107 votes. Frank Klinkovsky (47) and Mildred Holeman (88) announced that the Czech Heritage Museum has a desperate need for money, and encouraged everyone to buy raffle tickets for prizes that included cash payouts—first prize will be 10% of ticket sales, 2nd prize is 5%, 3rd prize is 3%, and 4th is 2%. Lodges were also asked to get together and purchase tickets. A bucket in the lobby is also provided for donations. Lodge 142 and Lodge 88 were thanked for their donations. SPJST ENC Executive Director John Hoelscher (47) and ENC Director Barbara Linney-Gonzales (88) thanked the SPJST for letting the ENC become a reality. Over 10,000 people have come to the ENC sharing the Czech heritage with people of all walks of life. Camp is not just for kids. Any type of group can come and benefit from the facilities. It is a place to learn and have fun. SPJST ENC Executive Director John Hoelscher (47) stated that operation costs of the ENC are being covered, but they are hav-

Regina, Debbie, Lisa 8:30 a.m. to 10:50 a.m.

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District II – James Skrabanek (47), Chairman District III - Milton Peterson (6) District IV – Arnie Rivera (219) District V – Lonnie Lostak (139) District VI – Rita Vanek (151) District VII – Valerie Barta (202)

ing difficulty meeting the obligations of the interest rates on loans. CC Donnie Victorick (9) stated that his first order of business would be to name a Convention Order Committee. The members appointed were: District II Albin Machu, (29); District III Wilburn Willis (54); and District VII Marcus Rebecek (79) who will preside as chairman. A recess was taken at 11:35 a.m.

Resolution Committee: Lynda Novak (84), Chairman Debbie Krpec (30) Sharon Kaderka (29)

Regina, Debbie, Lisa 11:20 a.m. – 11:35 a.m.

Grievance Committee: District I – Charles Munday (189) District II– Margaret Mikeska (24) District III – Justine Yeager (84), Chairman District IV – Joyce Kotulek (207) District V – Vernell Foyt (88) District VI – David Bucek (151) District VII – Larry Elzner (79)

MONDAY AFTERNOON — SESSION 3 12:30 p.m. - 3 p.m. June 11, 2012 CC Donnie Victorick (9) reconvened the Convention at 12:30 p.m. A copy of the proposed Convention Order was passed out to all delegates. CC Donnie Victorick (9) asked Marcus Rebecek (79) Chairman of the Convention Order Committee to come forward and read their recommendations. (These recommendations appear in the Appendix.) Glenn Kaminsky (28), CC Donnie Victorick (9) and Kay Lynn Kovar (25) notated grammatical errors. With no further discussion the Convention Order was approved by the delegates. CC Donnie Victorick (9) proceeded to appoint the following Convention Committees:

Parliamentarian: Roy Vajdak (88) Timekeeper: Glen Pruski (107) Sergeant at Arms: Ben Trcalek, Jr. (17) Donald Beckendorf (182) James Kocurek (40) moved that we accept the Convention Committee recommendations; it was seconded by Glenn Leslie Kaminsky (28), and the motion carried. CC Donnie Victorick (9) stated that all of the Pre-Convention reports had been published in the May 9th Convention issue of the Vestnik and called for any supplemental reports. SLP Brian Vanicek (24) and SLVP Gene McBride (200) had no supplemental reports. SLS-T Leonard Mikeska (200) stated that he had no supplemental report for the time period covered in the Pre-Convention reports but wanted to mention that SPJST had an outstanding first three months of 2012, perhaps even historic. Our surplus increased from $16.3 million to $17.7 million, which was an increase of $1.4 million. Our net income was

Credentials Committee: Frank Pajestka, Jr. (80), Chairman Diana Engelke (66) Yvonne Marcaurele (30) Convention Secretaries: Annie Vahalik (4) – Lead Secretary Regina Lynn House (202) – Lead Secretary Shirley Hoelscher (24) Vonda Smesny (91) Debbie Galler (66) Lisa Blum (17) Tellers Committee: District I – Deborah Kostelka (13)

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committee studied and deliberated carefully each item. He then asked all delegates to pull out their yellow copy of the proposed ByLaw changes and the additional yellow sheet. He also indicated that not all recommendations submitted were approved by the ByLaw Committee but if submitted could be brought to the floor by the delegates at the time that they are discussed. He stated that punctuation, numbering and grammar would be taken care of at the end. COVER PAGES – no change TABLE OF CONTENTS – Abbreviations was added as page 77 which moved Index to page 78. PREAMBLE – housekeeping NAME – no change PURPOSE – no change ORGANIZATION – no change MEMBERSHIP – no change SUPREME LODGE – paragraph change deferred Jarolyn Popp (133) asked who the Human Resource person for the SPJST is and what qualifications do they have. CC Donnie Victorick (9) stated that Debbie Klinkovsky (47) is the Human Resource Administrator and asked her to stand. SLP Brian Vanicek (24) stated that she has experience and training in the field. Jarolyn Popp (133) asked how the committee members would be determined. BLCC Ronnie Rieger (29) indicated that names would be brought to the committee and guidelines established. Jarolyn Popp (133) stated that this change was really great for screening and agreed that 90 days was sufficient for qualifying candidates. BLCC Ronnie Rieger (29) indicated that as the committee would meet they would outline qualifications. Jarolyn Popp (133) agreed that we need guidelines to qualify the candidates. Yvonne Marcaurele (30) pointed out some punctuation and editing corrections. Susan Skrabanek (17) asked if the District Directors were to be included in the screening process. BLCC Ronnie Rieger (29) stated they would not. Susan Skrabanek (17) asked if we were screening for Supreme Lodge Officers only or Directors, too. BLCC Ronnie Rieger (29) stated the committee would add the Directors to it. Rita Kay Spinn (80) asked if since the SLP is the Director of Human Resources,

$367,004. CC Donnie Victorick (9) commended SLS-T Leonard Mikeska (200) for the tremendous job that he has done for SPJST. Supreme Lodge Financial Secretary Roy Vajdak (88) had no additional supplemental report, but will pass out first quarter 2012 information to all delegates. Vestnik Editor/Director of Communication Melanie Zavodny (246) had no supplemental report. By-Law Committee Chairman (BLCC) Ronnie Rieger (29) stated that an additional yellow sheet of paper had been included in all of the delegate packets. Finance Committee Chairman (FCC) Herman D.Weise (160) stated that in their recommendations for the cemeteries that the $3,000 was changed to $4,500 per year with a max of $500 per cemetery per year. More explanation on this would be given during their presentation. Insurance Committee Chairman (ICC) Susan Skrabanek (17) and Publication Committee Chairman (PCC) Jarolyn Popp (133) had no supplemental reports. CC Donnie Victorick (9) called the ByLaw Committee to come forward for by-law deliberations. CC Donnie Victorick (9) said all recommendations to the by-laws come to the floor as a motion with a second. We would vote on each article separately, and then vote on the complete package at the conclusion of the by-law deliberations. Johnnie Krizan (6) questioned whether the final committee reports were in the delegate packets. SLS-T Leonard Mikeska (200) stated that all of the Pre-Convention reports had been published in the Convention Issue of the Vestnik and had been included in all of the delegate packets. Each committee would then provide a copy of their reports at the onset of their presentations to the delegates. BLCC, representing District II, Ronnie Rieger (29) introduced the rest of the By-Law Committee as follows: District I – Richard Ford (13), District III - Kay Lynn Kovar (25), District IV – Beverly Teplicek (49), District V – Mildred Holeman (88), District VI – Joe Siptak (4) and District VII Bettie House (202). He stated that they started back in September, and then met several times this year beginning in January. He thanked everyone who took the time to send in recommendations and suggestions and stated that the

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mittee. He then stated that rather than using the term “Screening” Committee, perhaps Nominating, Validating or Certification Committee would be more appropriate. SLP Brian Vanicek (24) stated that this is a recommendation of the By-Law Committee and that he likes the 90 days or even more to get to know the people. The more time you have, the better the screening process will be. Herman D.Weise (160) asked what the deadline to submit would be. BLCC Ronnie Rieger (29) stated that the deadline would be in line with the by-law recommendations. The term “Screening Committee” was used rather than “Nominating Committee” because they were just qualifying people who might run. Justine Yeager (84) reiterated Johnnie Krizan’s (6) comments about the conflict of interest with Article 17 and suggested it be reworded. Yvonne Marcaurele (30) stated that we need to make sure that the people on the committee are knowledgeable of the privacy laws to protect our organization. BLCC Ronnie Rieger (29) agreed and stated that there would be proper counsel. CC Donnie Victorick (9) stated that we will need to delay any action on this proposed change until the By-Law Committee comes back after the break with a revised copy. SUPREME LODGE (a) - housekeeping SUPREME LODGE (a) 1-6 – no change SUPREME LODGE (a) 7 – housekeeping SUPREME LODGE (a) 8-9 – no change SUPREME LODGE (b) - housekeeping DIRECTORS – no change CONVENTION - approved BLCC Ronnie Rieger (29) stated that a new sentence was being added, and part of the last sentence in the original by-law was being removed. He suggested that a hand vote be used unless a secret ballot was called for. Herman D. Weise (160) moved that we have a show of hands unless a secret ballot is requested. Mary Steinman (154) seconded the motion. Motion carried. CC Donnie Victorick (9) called for discussion of the bylaw change. Johnnie Krizan (6) asked how the time period would be governed. BLCC Ronnie Rieger (29) stated that it would be like the By-Law Recommendations and that it could be emailed, faxed, or postmarked by the necessary date and then sent to the

wouldn’t this need to be changed. CC Donnie Victorick (9) stated that the SLP is over the Human Resource Department and does oversee Debbie Klinkovsky (47) at this time. Don Strickland (169) asked who would be designated as Chairman of the Screening Committee. BLCC Ronnie Rieger (29) stated that they would have to be elected from the committee and that the By-Law Committee would add this to the recommendation. CC Donnie Victorick (9) asked the By-Law Committee to revise this recommendation and present it after the break with all of the changes. Mary Steinman (154) asked for clarification of who is the Supreme Lodge, is it the Supreme Lodge Officers and Directors? CC Donnie Victorick (9) stated that three Supreme Lodge Officers are elected and one is hired. They also serve on the Supreme Lodge Board with seven Directors. Lynette Talasek (47) asked if the committee would be evaluating or providing a job description. BLCC Ronnie Rieger (29) stated that the committee would come up with the guidelines and descriptions based on the knowledge, skills and abilities and all of this would be published in the Vestnik. Jerry Milan (154) asked who the committee would report to. BLCC Ronnie Rieger (29) stated that the findings of the committee would be published in the Vestnik. Jarolyn Popp (133) asked for clarification as to who makes up the Supreme Lodge. CC Donnie Victorick (9) stated that the Supreme Lodge consists of the Officers and Directors. Jarolyn Popp (133) asked for clarification of the President and Human Resource Administrator. Rita Spinn (80) stated that under the By-Laws on page 34 the President is the Director of Human Resources. CC Donnie Victorick (9) indicated that the President oversees the Human Resource Administrator. Johnnie Krizan (6) stated that he appreciated what the By-Law Committee is proposing and that much work is put into the decisions. Any time changes come up, there will be questions asked. He felt that all districts should be represented. Committees can use expert advice from the employees, but they should not be mixed with the governing body. This would be in conflict with Article 17, which prevents employees from being on any standing com-

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voting the inclusion of Supreme Lodge Officers and Directors. CC Donnie Victorick (9) called for a hand vote from each District Teller. The results were as follows:

Screening Committee, if passed. Susan Skrabanek (17) stated that an “a” needs a “b”. CC Donnie Victorick (9) agreed stating that it would not make sense as part of the existing paragraph. Herman D.Weise (160) asked if 90 days allowed ample time for the Screening Committee. Dana McAdams (66) inquired about the “b” following Article 9 without an “a” as previously discussed. BLCC Ronnie Rieger (29) stated that it is correct as is. Jarolyn Popp (133) stated we need to be consistent with who we cover with this change. Justine Yeager (84) asked that the discussion cease. 120 days is ample time. CC Donnie Victorick (9) called for the vote. Motion carried. LANGUAGE - no change DEFINITIONS AND OBSERVING BY-LAWS ARTICLE 1-3 – no change ARTICLE 4 (a) 1- no change ARTICLE 4 (a) 2 Note – housekeeping ARTICLE 4 (a) 3-4 – no change ARTICLE 4 (b-f) – no change ARTICLE 4 (g)-1 – approved ARTICLE 4 (g) 2 – approved ARTICLE 4 (g) 3-4 – no change ARTICLE 5 (a) – approved ARTICLE 5 (b) – no change ARTICLE 6 – housekeeping ARTICLE 7-11 – no change ARTICLE 12 (a – d) – no change ARTICLE 12 (e) – failed Justine Yeager (84) stated that employees should not be on the committee, but may be used as a resource to avoid a conflict of interest. CC Donnie Victorick (9) called for a show of hands vote which was too close to call so the Tellers were instructed to count hands in each District. CCC Frank Pajestka, Jr. (80) stated that we have 259 delegates. Two-thirds majority was determined to be 173 votes. Lynette Talasek (47) asked if this change included family, spouses and even sales reps. Cheryl Petr (84) inquired as to whether Donnie Victorick (9) or Leonard Jansa (160) would be able to run for CC and Vice Chairman next convention if this was passed. CC Donnie Victorick (9) stated that if this passed they would not be eligible. Mary Steinman (154) indicated that some delegates may not have understood when

District I II III IV V VI VII

For 0 17 15 1 20 32 14

Against 25 35 24 16 19 2 7

Total

99

128

Daniel Roznovsky (183) stated that everyone needs to vote. ARTICLE 12 (f-l) – no change ARTICLE 13 – 16 – no change STANDING COMMITTEES ARTICLE 17 – no change ARTICLE 18 (a) – no change ARTICLE 18 (b) – housekeeping ARTICLE 19 – 23 – no change ARTICLE 24 (a – b) – no change ARTICLE 24 (c) – housekeeping ARTICLE 25 – no change SUPREME LODGE ARTICLE 26 – (a) failed Lisa Bubela (30) asked what the purpose was and who would benefit from this change. BLCC Ronnie Rieger (29) stated that no one would benefit from it because it becomes effective July 1. Wanda Dorotik (30) stated that rather than going backwards, when qualifications are turned in, they should be qualified at that time. CC Donnie Victorick (9) stated that August 1 was the effective date rather than July 1 and called for the vote. Motion failed. Daniel Roznovsky (183) stated that many delegates were still not voting. He said that delegates are here to vote and should vote, or go home. Yvonne Marcaurele (30) implored everyone to represent their lodge completely and vote. Jarolyn Popp (133) stated there is confusion on what we are discussing and putting to vote. BLCC Ronnie Rieger (29) restated the Article change. Wanda Dorotik (30) stated that we had already voted on this and the

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motion had failed. We cannot bring it up again if it does not go our way. CC Donnie Victorick (9) agreed, but stated that not enough people are voting. Pauline Bayer (107) stated that people are confused about whether we are talking about the Supreme Lodge or the delegates. Mary Steinman (154) suggested that the confusion lies in whether we are referring to the three elected Officers or the three elected Officers and the seven Directors. CC Donnie Victorick (9) stated that we had already voted, and asked the Parliamentarian for clarification. Parliamentarian Roy Vajdak (88) stated that correct procedure was followed. Justine Yeager (84) stated that this was now a moot point. She felt that the confusion in voting may be with the word “preceding” since they would have had to have been active for at least five years. Susan Skrabanek (17) asked if this included the Directors. When she hears Supreme Lodge she assumes three Officers and the Directors. The wording is inconsistent. Sherrie Kubala Watkins (92) moved to re-vote. CC Donnie Victorick (9) asked if this would require a two-thirds majority vote. Parliamentarian Roy Vajdak (88) said that a simple majority would be required. Yvonne Marcaurele (30) stated that page 13 of the By-Laws in bold heading says that Supreme Lodge talks about three elected Officers. Page 21 talks specifically about the Directors. CC Donnie Victorick (9) asked if there was a second to the motion on the floor to re-vote. Jerry Milan (154) seconded the motion. He said that many people do not know who the Supreme Lodge is. He then asked Brian Vanicek if he was President of SPJST, and Brian responded that he was and that he was also an Officer of the Supreme Lodge. He then asked Gene McBride if he was Vice President of SPJST. He stated that he was, but that he was also an Officer of the Supreme Lodge. He then asked Donnie Victorick if he was Chairman of the Supreme Lodge and Donnie responded that he is a Director and the Supreme Lodge Chairman of the Board. CC Donnie Victorick (9) called for the vote. A show of hands was too close to call. Tellers were instructed to count the show of hands. Results were as follows:

District I II III IV V VI VII Total

For 25 22 20 1 9 21 22 120

Against 0 37 25 16 34 14 0 126

Motion to reconsider failed. Mildred Holeman (88) spoke in defense of the ByLaw Committee indicating that they worked very hard and believes that the decisions were carefully deliberated. The purpose of the change was to make sure that we have capable and qualified people running our Society who will uphold the standards of SPJST. ARTICLE 26 (b) – approved ARTICLE 26 (c-e) – no change ARTICLE 26 (f) – approved as amended Herman D.Weise (160) asked why the $20,000 was reduced to $10,000. BLCC Ronnie Rieger (29) indicated that the average annuity was $73,000 and that the average insurance policy was $43,000. The numbers in the Article are so old and out of date that the By-Law Committee felt they needed to be updated. The insurance amount should be more reflective of current times. $10,000 in an annuity would still be sufficient. He then indicated that the By-Law Committee would have no problem with increasing the annuity amount back to the original $20,000 in the Article change. Herman D.Weise (160) moved we amend the change, and change $10,000 back to $20,000 for the annuity. James Kocurek (40) seconded the motion. CC Donnie Victorick (9) clarified that this change affected Officers, not Directors. Motion carried. Vote on the Article change as amended carried. ARTICLE 27 – no change ARTICLE 28 – approved ARTICLE 29 -30 – no change ARTICLE 31 (a) – housekeeping ARTICLE 31 (b) – no change ARTICLE 31 (c) – housekeeping ARTICLE 32 (a-b) – no change ARTICLE 32 (c) – housekeeping ARTICLE 32 (d – o) – no change ARTICLE 32 (p) approved as amended

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(p). Mary Steinman (154) seconded the motion. Susan Skrabanek (17) called for a point of order stating that we already have a motion on the floor from the By-Law Committee. The Parliamentarian agreed. SLP Brian Vanicek (24) stated that peer review can help to identify positives and negatives in order to grow. Mary Steinman (154) suggested we fail this change. BLCC Ronnie Rieger (29) said they could delete the asterisked sentence. Larry W. Pflughaupt (88) stated the review process is a positive thing. Delegates can elect who they want in office. Evaluations are helpful for compensation, but need to be functional. Susan Skrabanek (17) moved to scratch the Editor/Director of Communication sentence. Sherrie Kubala Watkins (92) seconded the motion. Motion carried. Vote was taken on the amended change. Motion carried.

Yvonne Marcaurele (30) loved the idea that as a Supreme Lodge member they are held accountable but should not be doing the evaluation themselves. This leaves a gray area. Susan Skrabanek (17) said that it takes away the authority of the Publication Committee to do their job, and secondly, it makes the Editor/Director of Communication subject to evaluation by two authorities. She is not a member of the Supreme Lodge. Jarolyn Popp (133) agreed with Susan Skrabanek (17) that she should be independent and free to represent the SPJST membership. Herman Orange (246) stated that the Editor/Director of Communication produces a weekly paper that substantiates itself. SLP Brian Vanicek (24) stated that if it is not part of the by-laws, it needs to be part of the routine. On an annual basis we all need to be reviewed against each other as peers and given input on how we are doing. The Editor/Director of Communication was included where relevant. She does not stay in the Board meeting the entire time. The Publication Committee would still be able to give input. This change should be looked at as being a good steward of the organization. CC Donnie Victorick (9) stated that the American Fraternal Alliance has formal guidelines for peer evaluation. SLP Brian Vanicek (24) stated that this should be looked at positively. Lynda Novak (84) said that the readers of the Vestnik critique the Editor/Director of Communication as needed. Herman D.Weise (160) stated that he is in favor of review of the Officers and Directors, and asked if there were other options. SLP Brian Vanicek (24) stated that this recommendation came from him, SLVP Gene McBride (200), and SLS-T Leonard Mikeska (200). They all felt this was a positive thing to do. Justine Yeager (84) did not agree that a peer review was necessary for the Editor/Director of Communication. She added that there is no review for any of the Standing Committees. We elect the Editor/Director of Communication. We should be supportive rather than critical. Besides that, the people reviewing may not be qualified to evaluate the technology or other items being reviewed. Bob Bayer (107) moved that we delete all of Article 32

Annie, Shirley, and Vonda 12:30 p.m. – 3:00 p.m.

MONDAY AFTERNOON – SESSION 4 3:35 p.m. – 5:35 p.m. June 11, 2012 CC Donnie Victorick (9) reconvened the Convention at 3:35 p.m. He stated that due to the By-Law Committee still meeting, the minutes from the morning sessions are being passed out and will need to be approved. CVC Leonard Jansa (160) asked for review of the minutes. After the minutes for Session 1 were reviewed and corrected, Helen Kelner (28) moved to accept them; Jerry Milan (154) seconded. The motion passed. After the minutes for Session 2 were reviewed and corrected, Helen Kelner (28) moved to accept and Valerie Barta (202) seconded. Motion passed. CC Donnie Victorick (9) asked BLCC Ronnie Rieger (29) to continue with By-Law recommendation deliberations. BLCC Ronnie Rieger (29) read the changes to the By-Law pertaining to the Supreme Lodge on page 3 of the handout. CC Donnie Victorick (9) asked for discussion on this change. Chester Jenke (258) asked to insert the word “the” before the word “convention”. Lynda Novak (84) questioned the need to gather

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Skrabanek (17). Dolores Skrabanek (47) as Insurance Committee member also agreed with Susan Skrabanek (17). SLVP Gene McBride (200) stated it is hard to notify a lodge “before” appointing sales agents. Chester Jenke (258) said the word “before” should be changed to “when” to help clarify the language. Don Strickland (169) appreciates and understands this position, but stated that many sales agents are career agents with other options. He agrees that it is restrictive to include it in the by-laws; it makes it hard for agents to do their job. Rita Spinn (80) agreed with the Insurance Committee that this should not be included in the by-laws. Justine Yeager (84) thinks this by-law change keeps things fraternal. She is worried that the “tail is wagging the dog”. Agents need to be educated in fraternalism. Mary Steinman (154) feels that the Vice President needs to make sure contracts are being upheld. She feels that if they want the contract to say “must”, they need to change the contract. Yvonne Marcaurele (30) agrees with the Insurance Committee and feels that critiques and evaluations of agents are already part of the process. Justine Yeager (84), who already spoke on the issue, reminded everyone about the fraternal aspect. Ardis Bacak (40) agreed with Yvonne Marcaurele (30). CC Donnie Victorick (9) asked BLCC Ronnie Rieger (29) to re-read the proposal as is presented. Vote by show of hands was taken and motion failed. Susan Skrabanek (17) as Insurance Committee Chairman moved that Article 37 (c) read, “In areas where more sales agents are needed, the Vice President has the right to appoint new sales agents whenever he feels it is in the best interest of the society. Must notify the local lodge officers of the appointment of new sales agents at that lodge.” Dolores Skrabanek (47) seconded the motion. Johnnie Krizan (6) asked for clarification: if it is approved, the wording would change, and if it is defeated, the by-law would stay the same. BLCC Ronnie Rieger (29) stated that is correct. Question was called for and BLCC Ronnie Rieger (29) read the by-law as it is currently written, and then read it as it is proposed. Vote was taken by show of hands; motion carried.

additional background information and what types of background information would be gathered. BLCC Ronnie Rieger (29) clarified that the committee members would be responsible for determining what information is gathered. Johnnie Krizan (6) asked if there is a legal reason to use the word “screening”, and stated he is not satisfied with the “advisory” position of the Human Resources Administrator. He would like to see the Committee have the option to call on the Human Resources Administrator if necessary. BLCC Ronnie Rieger (29) clarified that the committee wants to stay away from the word “nomination”. Dorothy Pflughaupt (88) thinks all seven districts need to be represented. BLCC Ronnie Rieger (29) stated that the By-Law Committee discussed this, but felt that it was getting too big and decided to leave it as is. CC Donnie Victorick (9) asked the By-Law Committee to go back and work on this recommendation some more tonight and report back tomorrow. Article 33 (c and d) - housekeeping Article 34-no change Article 35-no change Article 36-no change Article 37 (c) – failed Proposed change discussion: Susan Skrabanek (17) as Chairman of the Insurance Committee thought the information was in the wrong place. The Insurance Committee submitted recommendations for changing this and it can also be found on page 29 of the Vestnik within the Insurance Committee’s Pre-Convention Report. The Vice President enforces the agents’ contracts, so there is no need to spell it out in the by-laws. Helen Hegwood (88), as Secretary of the Insurance Committee, concurred with Susan Skrabanek (17). Larry W. Pflughaupt (88) also concurred with the Insurance Committee’s recommendation. He says that the problem is that the contracts are not being enforced. Jerome Hlavaty (153) also agreed with Susan Skrabanek (17) and says he has strong feelings about it not being in the by-laws. Patsy Koslovsky (47) said that sales agents should be familiar with what goes on in lodges to promote the fraternal part of the SPJST. Daniel Roznovsky (183), as a member of the Insurance Committee agreed with Susan

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Motion failed. Article 40 – no change Article 41 – no change Article 41-A - no change Article 42 (a,b,c,d,e,f,g,h) – no change Article 42 (i) – failed Susan Skrabanek (17) as District I District Youth Counselor (DYC) questioned why the money needed to be used in the year it was given. BLCC Ronnie Rieger (29) stated that in order to not jeopardize the nonprofit status, the funds must be used; however, a small amount may be kept for operating expenses. Susan Skrabanek (17) stated some groups are frugal and save for future big activities. Mary Steinman (154) agreed with Susan Skrabanek (17). Lynda Novak (84) as Assistant DYC for District III said that to plan a big function, youth clubs may need to collect funds the following year. BLCC Ronnie Rieger (29) said that some carry-over is okay, but not the entire amount. Doris Ford (13) questioned how we will know if the money came from an allocation or from fundraising. Patsy Koslovsky (47) as District II DYC stated that the money belongs to the kids and it should be used for the kids in the program now. Kyle Skrabanek (17) supports having a cushion from saving year to year. Lynnette Talasek (47) said that if there is not enough money, then youth clubs need to do more fund raising. Vote was taken by show of hands, and motion failed. Article 42 (j) – no change Article 42 (k) – housekeeping CC Donnie Victorick (9) made the announcement that there will be an Open Forum tonight in the Convention Hall at 6:00 p.m. for delegates to meet the candidates for Vice President and ask questions. Article 43 (a) – no change Article 43 (b) - discussion Lynn Pflughaupt (88) questioned if Article 43 (b) and (c) were the same. Johnnie Krizan (6) asked for clarification-if there are no local dues will they remain active? CC Donnie Victorick (9) said yes, paid up members would remain active. Carol Havemann (88) said that 43 (b) and (c) will be the same thing. CC Donnie Victorick (9) asked the By-Law Committee to go back and discuss this for later consideration.

Susan Skrabanek (17) as Insurance Committee Chairman proposed to add Article 37 (d) “Administers sales agents’ contracts and ensures that duties and responsibilities in contract are fulfilled.” She said the motion was made and seconded, and is ready to be voted on. With no discussion, motion passed with a show of hands. Article 37 (e,f,g,h,i,j,k,) – no change Article 38 – no change Article 39-(a) (1) – failed Proposed change discussion: Yvonne Marcaurele (30) stated the previous by-law recommendation failed, and that the Directors must be held to the same standards as the Supreme Lodge Officers. Vote taken by show of hands, and motion failed. Article 39 (a) (2-5) - no change Article 39 (b,c) -no change Article 39 (d) - failed Mary Steinman (154) asked what would happen if no one wants the position of Director after reaching the term limit. Al Kercho (92) asked why restrict limits, if we have the power to vote every four years. Robert Mayfield (172) asked if no one is running for Director, how can we vote on a new person. Yvonne Marcaurele (30) stated that everyone should have the ability to run without fear of hurt feelings and intimidation. BLCC Ronnie Rieger (29) stated that this recommendation came about because of suggestions that some were afraid to run for Director and “new blood” is needed. Edwin Wallek, Jr. (26) said he believes in term limits. Cheryl Petr (84) asked why are we picking on Directors, why not other voted positions. David Bucek (151) said that officers are elected at Conventions. Wanda Dorotik (30) said that each district votes for their own director. Johnnie Krizan (6) said that Czechs believe in free-thinking; we should not be restrictive; we should look for the best qualified person and we should leave it to the districts to decide. Ricky Weyand (179) stated that we should keep the by-law as is. Mary Ann Kieschnick (142) asked if we needed clarification from the Parlimentarian. David Bucek (151) wants the next generation to have a say, and believes there should be term limits. Herman D.Weise (160) called for the question. Vote was taken by show of hands.

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Popp (133) questioned how this relates to Article 65. SLP Brian Vanicek (24) said this would not be in conflict if a special meeting was called, and at least 20 members were present and voted to keep the lodge active. Wayne Orange (246) agrees with Jarolyn Popp (133). SLP Brian Vanicek (24) made reference to Lodge 202, Jourdanton as an example for a protocol on merging lodges. He also made a reference to Lodge 89, Rosebud that gave members the option to be part of an active lodge. When lodges go inactive and/or operate at marginal status, members need a place to go, and mergers are not necessarily effective. Wayne Orange (246) gave a rebuttal and said that we already have a by-law in place, and need to follow the bylaw that is in place. SLP Brian Vanicek (24) said that members should be given the option to go where they want to go. Sherrie Kubala Watkins (92) used the Pilot Point-Tioga Lodge as an example of a lodge that was going downhill, and credited SLVP Gene McBride (200) with revitalizing it. This shows that it can be done without a mandated reassignment. CC Donnie Victorick (9) asked the delegates to take some time to read over the ByLaw Committee recommendations to be addressed tomorrow. He also reminded the delegates that there will be an Open Forum tonight at 6:00 p.m. CC Donnie Victorick (9) also announced that the Convention pictures can be ordered for $30. Recess was taken at 5:35 p.m. until 8:00 a.m. Tuesday morning, June 12, 2012.

Article 43 (c,d,e) – no change Article 44 – no change Article 45 – no change Article 46 – no change Article 47 – no change Article 48 – no change Article 49 – no change Article 50 (a) – housekeeping Article 50 (b) - approved CC Donnie Victorick (9) asked for clarification on the recommendation. Johnnie Krizan (6) stated that annual meetings used to be held in January in order to collect dues, etc., and asked if this is really causing problems. Secretary-Treasurer Leonard Mikeska (200) said this didn’t really cause problems. The question concerned the majority of meetings made by delegates if these meetings were held quarterly. He said that he can work with lodges either way. Glenn Kaminsky (28) called for the question. Mary Steinman (154) made a motion to amend the By-Law Committee recommendation to add “January of the following year”. Herman D. Weise (160) seconded the motion. Vote was taken by show of hands. Amended motion failed. Vote on Article 50 (b) recommendation taken by show of hands. Motion passed. Article 50 (c,d,e,f,g) – no change Article 51 – no change Article 52 – no change Article 53 – no change Article 54 – skip Article 55 – no change Article 56 – no change Article 57 – no change Article 58 – no change Article 59 – no change Article 60 – no change Article 61 – no change Article 62 – no change Article 63 – no change Article 64 – no change Article 65 – no change Article 66 – no change Article 67 – no change Article 68 – no change Article 69 – no change Article 70 – no change Article 71 (a) - discussion BLCC Ronnie Rieger (29) began the discussion for adding Article 71 (a). Jarolyn

Regina, Debbie, Lisa 3:35 p.m. to 5:35 p.m.

Tuesday Morning Session 5 8:09 a.m. – 9:35 a.m. June 12, 2012 CC Donnie Victorick (9) reconvened the Convention at 8:09 a.m. with the Pledge of Allegiance and a prayer. He then recognized from RVOS President Wiley Shockley, Richard Hykel, and Wes Jackson who would not be able to attend this evening’s banquet. There were no further announcements.

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(9) said that hindsight is 20/20. SLP Brian Vanicek (24) stated that we needed to establish a clearly defined procedure for disbanding. There is a procedure for mergers, but disbanding has been handled one by one. They should not be handled arbitrarily but with order and specificity. Herman Orange (246) said that we now need to have the delegates set procedures so that lodge leaders take care of things like this properly. SLP Brian Vanicek (24) said that we need clear and defined procedures so that when it comes up there will be no question on how to handle the situation. Pat Fowler (25) asked how many lodges have been affected and how many lodges are in the state. SLP Brian Vanicek (24) indicated that District 7 had initiated disbanding procedures for Harlingen, Laredo, Pearsall, Hondo, Alice and San Marcos. District 2 had initiated disbanding procedures for Rockdale and Rosebud. District 3 has one pending merger. No lodges are being targeted for reassignment or disbandment. Helen Hegwood (88) asked how many active lodges we have. SLP Brian Vanicek (24) indicated that at present time we have 108 active lodges. Vicki Reese (133) asked if money is left in a disbanded treasury, will it be left there for five years in case they reactivate. SLP Brian Vanicek (24) stated that past Financial Secretary Jerry Mikulas had handled this in the past. In 2010, Laredo was the only lodge with assets. Bob Bayer (107) stated that funds from Pearsall went to the Jourdanton lodge. Harlingen had no funds. Laredo’s funds went to Floresville. San Marcos did not have any records. Hondo had no funds. Hobson’s funds were transferred to Floresville. Rio Hondo is trying to salvage their lodge but they only have one or two members attending meetings. SLP Brian Vanicek (24) stated that funds will be retained for five years and be there if the lodge reactivates. Bob Bayer (107) agreed that the money is held for five years. Mildred Holeman (88) stated she would like for the delegates to vote for this to give guidelines to the Home Office for handling this situation and called for the vote. CC Donnie Victorick (9) stated that we would be voting on Article 71 in entirety. SLP Brian Vanicek (24) stated that he agreed with Jarolyn Popp (133) that we needed 30 days rather than two weeks in the notification

CC Donnie Victorick (9) asked for an updated report from the CCC Frank Pajestka, Jr. (80). The following changes were submitted: District 5 Lodge 142 delegate Alice Jochen was now present. Therefore Keith Keischnik will now have 142 votes and the other delegates in Lodge 142 will each have 139 votes. District 5 Lodge 88 delegate Carolyn J. Havemann went home. Therefore, Patricia J. Bruce will now have 184 votes and the other delegates in Lodge 88 will each have 169 votes. District 3 Delegate Sherry Kubala Watkins (92) needed to leave due to illness in the family. Alfred Kercho will now have 178 votes and the other delegates in Lodge 92 will each have 177 votes. CC Donnie Victorick (9) stressed to the delegates that they need to make sure they use the right number of votes when voting by ballot. BLCC Ronnie Rieger (29) read Article 71 (a). CC Donnie Victorick (9) asked for any discussion. Chester Jenke (258) asked for clarification on the last sentence regarding pending necessary protocol and notification. BLCC Ronnie Rieger (29) stated that it was covered in (b) of this Article. SLP Brian Vanicek (24) agreed that this was covered in (b) and that this would be accomplished through the Vestnik and letters to each member. Dorothy Pflughaupt (88) stated that a lot of delegates did not do their homework last night and asked that the entire Article be read. CC Donnie Victorick (9) read the entire Article to the delegates and then called for discussion. Yvonne Marcaurele (30) spoke against this change saying that in reading and seeing what we have, it looks like a policy and procedure which could be handled through peer review at the Home Office. Jarolyn Popp (133) said that she did not have a problem with the change but would like to have it allow a month rather than two weeks for notification. As long as the Home Office decides on the changes she is for this motion. Herman Orange (246) was recognized by the Chair but the Parliamentarian called point of order indicating that he had already spoken on this motion yesterday. CC Donnie Victorick (9) allowed him to speak. Herman Orange (246) said his main concern was with how it was being implemented. Does it need to be in the By-Laws if we are already taking care of it. CC Donnie Victorick

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glossary of abbreviations, titles and company names would be included at the end of the bylaws. Going back to unfinished deliberations, all delegates were asked to go back to page 3 of the By-law handout and also reference the additional sheet passed out this morning concerning this change. SUPREME LODGE – approved as amended He then read the change to all delegates. By-Law Committee Member Kay Lynn Kovar (25) stated that currently if the screening committee was in place Districts 1, 2, 4, and 7 would be represented and it would be hoped that the remaining at-large members of the committee would be from the remaining districts for proper representation. Johnnie Krizan (6) appreciated all the work, but really wants to make sure we avoid any discrimination claims or conflicts with regard to Article 17 and suggested that we be more generic when referring to legal support. He recommended the following wording: “Establish a screening process for the purpose of reviewing all qualification of submitted candidates for Supreme Lodge Officers, Editor/Director of Communication and seven directors. The Screening Committee has the right to gather additional background information, submit the slate of qualified candidates to the delegates 90 days prior to convention, and shall have the discretion to employ personnel with legal and Human Resource expertise to assure compliance with current labor laws.” In addition, in the last paragraph we need to add wording so that there is representation from all districts. He moved to amend this proposed change. Larry W. Pflughaupt (88) seconded the motion. Mary Steinman (154) stated that having Standing Committee Chairmen on the screening committee could potentially have all members from the same District if the elections worked out that way. Susan Skrabanek (17) stated that we are making a mountain out of a mole hill. All we want to do is double check people who are running for office. RVOS has something like this in place. Nothing personal, just strictly checking qualifications. We are wasting time. Bob Bayer (107) concurs with Susan Skrabanek (17). Jarolyn Popp (133) asked to amend the amendment and make the By-Law Committee

process. Lynette Talasek (47) clarified that mergers and disbandments are two different things and this deals with disbanding. BLCC Ronnie Rieger (29) stated that the By-law Committee will accept the 30 days in place of two weeks. Motion carried. ARTICLE 71 (a-f) approved ARTICLE 71 (Pre-existing Article 71) - skip ARTICLE 72 – no change ARTICLE 73 – no change ARTICLE 74 (a) – no change ARTICLE 74 (b-c) – approved Pat Fowler (25) asked if the transfers needed to be approved by the new lodge. BLCC Ronnie Rieger (29) indicated that this was covered in (c) and read it to the delegates. With no further discussion motion carried. Larry W. Pflughaupt (88) asked how this disbanding would fit under the title of New Members. CC Donnie Victorick (9) indicated that everything would go up one spot and was in the proper place. ARTICLE 75 – no change ARTICLE 76 – no change ARTICLE 77 – no change ARTICLE 78 – no change ARTICLE 79 – no change ARTICLE 80 – no change ARTICLE 81 – no change ARTICLE 82 – no change VESTNIK ARTICLE 83 – no change ARTICLE 84 – no change ARTICLE 85 – no change ARTICLE 86 – no change ARTICLE 87 – no change LOANS: REAL ESTATE AND CERTIFICATE AND ASSIGNMENTS ARTICLE 88 - no change ARTICLE 89 – no change ARTICLE 90 – no change ARTICLE 91 – no change ARTICLE 92 – no change ARTICLE 93 – no change ARTICLE 94 – no change ARTICLE 95 – no change ARTICLE 96 – no change ARTICLE 97 – no change ARTICLE 98 – housekeeping BLCC Ronnie Rieger (29) stated that a

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input and discussion. CC Donnie Victorick (9) turned over the Chair to CVC Leonard Jansa (160) for review of minutes. James Kocurek (40) moved to accept as corrected the minutes from Monday Afternoon Session 3. Helen Kelner (28) seconded the motion. Motion carried. Valerie Barta (202) moved to accept as corrected the Monday Afternoon Session 4 minutes. Mary Steinman (154) seconded the motion. Motion carried. CC Donnie Victorick (9) called for a 25 minute recess at 9:35 a.m.

the Screening Committee. They are knowledgeable and all districts would be represented. Ardis Bacak (40) seconded the motion. Parliamentarian Roy Vajdak (88) clarified that a majority vote would be needed to amend the amendment. Motion carried. Herman D. Weise (160) asked for a point of clarification and the Parliamentarian indicated that we are now voting on the whole amendment as amended. Al Kercho (92) wanted to make sure that the screening committee and the ByLaw Committee were the same and that we were not creating another committee. Don Strickland (169) asked that we change the word “employ” in the second paragraph to the term “consult with” to avoid any conflict. Johnnie Krizan (6) accepted this change. Patsy Koslovsky (47) asked if the By-Law Committee would want to accept this role. They already have so much to do. CC Donnie Victorick (9) stated that they would have no choice in the matter if approved by the delegates. BLCC Ronnie Rieger (29) stated that this would not be a problem. Parliamentarian Roy Vajdak (88) indicated that we could now vote on this amendment and would need a two-thirds majority for approval. Motion carried. CC Donnie Victorick (9) reread the bylaw change to read as follows: “Establish a screening process for the purpose of reviewing all qualifications of submitted candidates for Supreme Lodge Officers, Editor/Director of Communication and seven directors. The Screening Committee has the right to gather additional background information, submit the slate of qualified candidates to the delegates 90 days prior to convention, and shall have the discretion to consult with personnel with legal and Human Resource expertise to assure compliance with current labor laws. The By-Law Committee will be the Screening Committee.” Motion carried. ARTICLE 43 – no change BLCC Ronnie Rieger (29) stated that they had withdrawn their proposed recommendation. CC Donnie Victorick (9) stated that we now needed formal approval of the motion by the By-Law Committee to accept all of the changes as voted. Motion carried. BLCC Ronnie Rieger (29) thanked everyone for their

Annie, Shirley, and Vonda 8:09 a.m. – 9:35 a.m.

Tuesday Morning – Session 6 10:00 a.m. – 11:55 a.m., June 12, 2012 CC Donnie Victorick (9) reconvened the Convention at 10:00 a.m. CVC Leonard Jansa (160) checked with the districts to see if all delegates were seated and ready. CC Donnie Victorick (9) asked the delegation to locate the black notebook that was included in the delegate’s packet, and called the Special Structure Committee (SSC) Members forward: SSC Secretary Melanie Zavodny (246), Brian Vanicek (24), and Lisa Bubela (30). He then relinquished the Chair to CVC Leonard Jansa (160), due to being the Chairman of the SSC. BLCC Ronnie Rieger (29) asked for a report of the SSC. Jarolyn Popp (133) asked why the entire SSC was not asked to come to the stage. SSC Chairman (SSCC) Donnie Victorick (9) stated that it was a matter of seating space, and requested the rest of the committee join them on the stage. These members included Larry Laznovsky (135) who recently passed away, Susan Skrabanek (17), Ronnie Rieger (29), Herman D. Weise (160), Jarolyn Popp (133), Lonnie Lostak (139), Jerry Sijansky (79), and Gene McBride (200). Pat Fowler (25) asked that a replacement for Larry Laznovsky (135) be found. SSCC Donnie Victorick (9) stated that replacing Larry had slipped his mind. He suggested Johnnie Krizan (6) since he had given

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position and adding duties for each officer. Lisa Bubela (30) as SSC member asked that the delegates read what is presented to them with an open mind and to think about what they are reading. Justine Yeager (84) remembers the discussion from the 2004 Convention and is surprised to see all this work. She questioned why the SSC did not get with the By-Law Committee. SSCC Donnie Victorick (9) answered that the SSC met with the ByLaw Committee for the first time in September and noted that this committee has not been reimbursed for its expenses. Mary Steinmen (154) stated that she understands Justine’s comments but questions why this committee is presenting the changes instead of the By-Law Committee. SSCC Donnie Victorick (9) stated that they will present it, but the SSC wanted to explain, clarify, and provide background information to the delegates. BLCC Ronnie Rieger (29) stated that he asked the SSC to help explain and answer questions. Susan Skrabanek (17) suggested that several times she has gone to the microphone and made the statement, “this needs to be in an operation manual and not the by-laws”. She questioned whether the by-law and procedures would become Article 24, and if they will be up for debate every four years. Johnnie Krizan (6) echoed Justine Yeager’s (84) comments about the size and scope of this. He feels that at the 2004 Convention Monta Foster, (185), who has since passed away, was concerned that the electing of officers would become outdated. Yvonne Marcaurele (30) applauded the committees for all their thought, effort, education, and experience. She feels we have to stay current, and that we need changes to keep up in the new century. Daniel Roznovsky (183) stated that we need to start today for the next convention. CVC Leonard Jansa (160) restated that if this is approved it would be voted on during the 2016 Convention. BLCC Ronnie Rieger (29) stated that not just the delegates, but all members would have the right to discuss and make recommendations to the by-laws over the next four years. Al Kercho (92) reminded the delegation that the committee was acting on the recommendations of outside consultant, Todd Martin,

some input in the past. Johnnie Krizan (6) said he would, but would like the consent of the District III delegates. He had only participated in one meeting and felt that there are a lot of qualified people in District III. He suggested Mary Steinman (154) as Larry’s replacement. Mary Steinman (154) accepted. SSCC Donnie Victorick (9) stated that after Larry’s death, no further business took place. Mary Steinman (154) clarified her understanding that we would only be voting on the format, and not the contents. The wording will be voted on at the 2016 Convention. The document does not have to be read word-forword. SSCC Donnie Victorick (9) stated that it had been difficult to get the entire committee together, so they formed a sub-committee who then brought the information to the rest of the committee. He stated that everything in the notebook is a proposal, and is not to be taken as “gospel”. He assured the delegation that nothing of value was left out. SSC Secretary Melanie Zavodny (246) explained that the first part of the book describes the committee and how it came about. Brian Vanicek (24) as SSC member said that he received a list of questions from District VII and he used that format for the explanation of the committee. He then read the questions and answers for the delegation. SSC Secretary Melanie Zavodny (246) directed the delegation to the pink page in the notebook and explained that the document is organized according to articles, and the name of the articles defines what is included in that section. The committee feels the by-laws are a rather disorganized product of the last 115 years; for example, two articles in the bylaws address the exact same topic. SSC Secretary Melanie Zavodny (246) stated that the committee took the current by-laws, reorganized them, and added an operations manual; but many wanted only one document. As a result, they put together the threecolumn document to help clarify the proposed recommendations. She referred the delegation to the yellow page in the black notebook with an explanation of the three columns. Brian Vanicek (24) as SSC member stated that the most meaningful changes are the designation of the Chief Financial Officer

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(proposed new) by-laws. CVC Leonard Jansa (160) called for a vote by show of hands. It was too close to call from the podium. Tellers were asked to take a tally of the districts. Results are:

General Counsel to the American Fraternal Alliance, who is an expert. SSCC Donnie Victorick (9) explained that after the consultant made his first recommendation, the committee did a “back-flip”. It had been recommended that there were no elected officers and 90% of the by-laws did not belong. The committee tried to meet in the middle and put together something the delegation would accept. The committee worked to “clean up” and simplify the bylaws. Rita Spinn (80) commended the committee, but asked if the operation manual would be included or would it be a separate manual. SSCC Donnie Victorick (9) clarified that the operation manual would be included as a separate section of the by-laws. BLCC Ronnie Rieger (29) explained that the delegates will still get the right to vote on it. Lynette Talasek (47) questioned whether the documents will be together or separate. SSCC Donnie Victorick (9) explained that it would be a separate living document that can be changed by members. Any changes would be published in the Vestnik three to four times giving members time to respond. BLCC Ronnie Rieger (29) stated that they felt too much authority was being taken away from the delegates, so it was put into one document. Susan Skrabanek (17) as SSC member recommended the operation manual should be separate from the by-laws. An operation manual can be changed anytime when needed, as opposed to by-laws that can only be changed every four years. Lynette Talasek (47) moved to separate the by-laws from the operations manual. Justine Yeager (84) seconded the motion. Mary Steinman (154) said that she is new on the committee, but we will have four years to look it over and make recommendations. Johnnie Krizan (6) stated that as a Director he will do what the delegates want. He feels that most large fraternals are run like Corporate America, and we would like to have the best of both worlds; he feels the delegates should retain authority and elect officers and prescribe duties. He worries that the Supreme Lodge Officers would be able to change their own duties. SLS-T Leonard Mikeska (200) stated a concern that there is a contractual reason to keep Article 122, 123, & 125 in the

District I II III IV V VI VII Total

For 22 32 14 14 42 27 13 164

Against 4 25 34 4 1 8 6 82

Motion passed. BLCC Ronnie Rieger (29) stated that now we will be voting on the proposed by-law recommended format and the organization of it. Mary Steinman (154) asked for clarification: voting only on format, not the wording. BLCC Ronnie Rieger (29) stated that is correct. SSCC Donnie Victorick (9) stated that what is approved at this convention will be incorporated at the next convention. Johnnie Krizan (6) referred to the last sentence of the second paragraph on the first page of the black notebook. These changes will be dealt with at the next convention. Mary Steinman (154) stated that the committee will go back and send out the revised by-laws as soon as possible. BLCC Ronnie Rieger (29) stated that the only changes that would be made are the by-laws that were changed at this convention. Justine Yeager (84) asked if the by-law changes will be re-incorporated. SSCC Donnie Victorick (9) answered that it would be. CVC Leonard Jansa (160) called for vote by show of hands; motion passed. SSCC Donnie Victorick (9) thanked SSC Secretary Melanie Zavodny (246) for going above and beyond the call of duty and for working in her spare time to get it done. CVC Leonard Jansa (160) dismissed the By-Law Committee Members and the SSC Members from the podium. Leo Jares (8) commended everyone who took part in this very important issue, and asked that everyone involved be given a big

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increase annually with a cap of 6% for the four years total. John Engelke (66) referenced the proceedings of the 30th Convention page 81-the increase was actually 6% annually, not over the four years. FCC Herman D. Weise (160) clarified that raises would be no more than 6% annually. With no further discussion on the amendment, vote by show of hands was taken; amendment passed. With no discussion on recommendation for Officers’ Salaries, vote was taken by show of hands; motion carried. With no discussion on recommendation for Longevity Pay, vote was taken by show of hands; motion carried. Herman D. Weise (160) presented a recommendation for a 1 ½ % increase for the Editor/Director of Communication. Pat Fowler (25) made a motion to put a cap of no more than 4 ½ % annually on the salary. Motion died for lack of second. Jarolyn Popp (133) moved to put a cap of no more than 6% annually on the salary. Ashley Victorick (88) seconded the motion. Vote by show of hands; motion carried. Jarolyn Popp (133) moved to add a cap of 6% to all other salaries, but FCC Herman D. Weise (160) stated that this recommendation is already put forth, and no need to take another vote. With no further discussion on recommendation for Directors’ salaries, vote was taken by show of hands; motion carried. Convention adjourned for lunch at 11:55 p.m. to reconvene at 1:00 p.m.

hand. CVC Leonard Jansa (160) called the Finance Committee Members to the podium. Finance Committee Chairman (FCC) Herman D. Weise (160) introduced the members of the committee and said he appreciated delegates being here and taking the time to decide on issues. Alice Jochen (142) stated that she did not get a copy of the report. Pat Fowler (25) stated that she sent in a recommendation to the committee for a larger increase in pay to be given to the delegates to reflect the percent of increase given to the officers. FCC Herman D. Weise (160) stated that the recommendation was received and seriously considered, but the committee felt that we could not afford to spend a lot of money right now due to upcoming big expenses. Pat Fowler (25) rebutted that the delegates fraternally work for the lodges, and spend a lot of time and travel as well as the officers. Yvonne Marcaurele (30) stated that she took a pay cut in her personal job to help keep business viable. Maybe an increase in delegates’ pay would be considered at the next convention. Lynette Talasek (47) asked why the DYC’s and Assistant DYC’s did not get approval for their recommendation for a raise. DYC’s did not ask for a raise last convention, and it would be another four years without one. FCC Herman D. Weise (160) stated this would be addressed in the appropriate section of the report. CVC Leonard Jansa (160) called for discussion for Remuneration Recommendations from page one of the report. With no discussion, vote by show of hands was called for; motion passed. With no discussion on recommendation for Standing Committees’ pay, vote was taken by show of hands; motion carried. With no discussion on recommendation for Other Committees’ pay, vote was taken by show of hands; motion carried. FCC Herman D. Weise (160) asked for discussion on recommendation for Officer Salaries. Pat Fowler (25) agreed with the recommendation, but made a motion to add “no more than 6% annually” to the recommendation. Jarolyn Popp (133) seconded the motion. Susan Skrabanek (17) stated that at the last convention it was approved as a 1.5%

Regina, Debbie, Lisa 10:00 a.m. – 11:55 a.m.

Tuesday Afternoon Session 7 1:00 p.m. – 2:20 p.m. June 12, 2012 CC Donnie Victorick (9) reconvened the convention at 1:00 p.m. to continue Finance Committee deliberations at the DYC Section. Larry W. Pflughaupt (88) stated that many Directors give up per diem and donate their time to SPJST when possible. Justine Yeager (84) stated that she had given a recommendation to the Chairman to review. CC Donnie Victorick (9) asked that all delegates cut off

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tified? SLP Brian Vanicek (24) stated that there is a rather large notebook of information they are required to be knowledgeable about to do their job. Susan Skrabanek (17) said that DYCs do many things on a weekly and monthly basis and do not get paid. She added that in their position they are training the youth of our society to be future delegates. They are responsible for the safety of the youth on a daily basis. CC Donnie Victorick (9) asked how often she got paid a per diem. Susan Skrabanek (17) stated that she receives per diem for YL training, two DYC meetings a year, preparation and attending camp, preparation and attending District YAD, State YAD, Fall Fun Day, and quarterly socials as held. She has about 100 kids in her District. Her 1099 the past year was for around $3,000. Jeanette Kaminsky (28) asked how many DYCs we have in the state. CC Donnie Victorick (9) stated that we have seven and the number of assistants varies in each district. Patsy Koslovsky (47) stated as a DYC they are dealing with kids almost every day and have a lot of responsibility. She finds it hard to accept that committee pay would be a comparison for what they do. John Engelke (66) moved to amend the Finance Committee recommendation to read $240 dollars per diem for DYCs and $180 for DYC assistants. Mary Ann Kieschnick (142) seconded the motion. Motion to amend carried. Parliamentarian said that we now needed to vote on the amended Recommendation. Motion carried. YOUTH DEPARTMENT – approved DISTRICT FRATERNAL ACTIVITIES COORDINATOR – approved EDUCATION - approved EDUCATION AND NATURE CENTER – approved CC Donnie Victorick (9) called on Financial Secretary Roy Vajdak (88) to explain the benefit of this Recommendation. Financial Secretary Roy Vadjak (88) explained that when mortgages go past due we have to put funds aside which amounted to $275,000 for the ENC. That lowered our surplus. ENC was $73,000 to $75,000 delinquent. Had we just paid that, we could have left our bottom line with more surpluses. The Board of Directors submitted this change to the committee. SLP Brian Vanicek

their cell phones and put up their computers and focus on being a delegate. All District Directors reported that their delegates were seated. District Youth Counselor – approved as amended FCC Herman D. Weise (160) read the DYC Section of the Recommendations of the Finance Committee as adopted for the 2012 Convention, Killeen, TX. Lynette Talasek (47) said she understands that a request was submitted to raise the DYC reimbursement to $250 and the assistant DYC per diem to $150. Why was this rejected? FCC Herman D. Weise (160) acknowledged that it had been received but indicated that the committee rejected it because of the cost involved. Even though there are not that many DYCs it is fairer to keep their pay consistent with the Standing Committees. Lynette Talasek (47) respectfully disagreed. She indicated that the Chairman of each Standing Committee gets paid more, so that the DYC needs to get these additional monies also. FCC Herman D. Weise (160) acknowledged that the Chairman and Secretary of each committee do receive additional money. Lynette Talasek (47) then asked why a DYC wouldn’t be treated as a Chairman. FCC Herman D. Weise (160) said that they are not saying that DYCs are like committees, just using the same basis for compensation. Lynette Talasek (47) stated that it has been eight years since the DYCs have received a raise. Mary Steinman (154) stated that DYCs do get paid for mileage to meetings. Standing Committees do not. CC Donnie Victorick (9) stated that they do get paid mileage. Mary Steinman (154) asked where this was specified and referenced page 2 of these recommendations as not having this noted. FCC Herman D. Weise (160) clarified that Standing Committees and delegates do get mileage. CC Donnie Victorick (9) mentioned that the Insurance Committee has used telephone conferences to save the SPJST money. FCC Herman D. Weise (160) added that the Finance committee has also done this when possible. Don Strickland (169) questioned the DYC position with regard to the need of additional training for the position in comparison to a committee. Therefore, wouldn’t the DYC extra compensation be jus-

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Victorick (9) indicated that this was something that the Board of Directors could consider. Ronnie Pflughaupt (1) said he lives nearby and the facility that we paid $2.5 million to create is now worth about $5 million. ENC has the capability to pay off the loan and the SPJST can use the facility at a reduced rate, but other campers would help pay off the debt by paying the daily rate rather than paying a group rate. The other day campers would rent the camp and the loan could be paid off sooner. Motion carried. CZECH HERITAGE MUSEUM – approved FCC Herman D. Weise (160) indicated that the Czech Heritage Museum is struggling but making progress. He also added that the museum currently owes around $38,619 in interest until the end of 2012. SLS-T Leonard Mikeska (200) indicated a technicality saying that the interest would not be delinquent until after July 1, 2012. President of the Czech Heritage Board, Jerry Milan (154) also added that $47,000 had already been paid on the principal and they have raised $900,000 to help refurbish the building which houses the museum. This would not have been possible without the help of the SPJST. He stated that things will only improve and that our board is currently working for nothing to keep our heritage alive for our children through this museum. Czech Heritage Museum Board member Mildred Holeman (88) stated that we are very happy to be able to pay down on our note and she continues to challenge each and every lodge to give to this worthy cause. She could not find her bucket, but has a bag, so please give. SLS-T Leonard Mikeska (200) indicated that due to a lot of hard work behind the scenes we have a foundation that is being created to become a centralized vehicle to raise funds for the Czech Heritage Museum, ENC, Scholarships and other institutions. Czech Heritage Museum Treasurer Jesse Pospisil (29) stated that at present we have $17,000 to go towards the principal. CC Donnie Victorick (9) called for the vote. Motion carried. REST HOMES – approved SCHOLARSHIP FUND – approved

(24) added that annually SPJST gets an AM Best rating which is affected by past due notes. ENC affected this. We need to be able to show a clean portfolio. Finance Secretary Roy Vadjak (88) strongly encouraged the Finance Committee to address this. Jarolyn Popp (133) asked for clarification. She thought we were to keep ENC separate from the SPJST. CC Donnie Victorick (9) stated that ENC was their own 501(c)(3) with a loan from SPJST. Jarolyn Popp (133) asked if we were going to pay the interest on it. Herman Orange (246) questioned when the ENC will stand alone. They have a 50 year lease and all that we put in can be lost. Are they always going to count on SPJST for money? SLS-T Leonard Mikeska (200) stated that the ENC did pay half the interest. Their current cash flow is positive and indications are that it will stay this way. FCC Herman D. Weise (160) stated that the past due from last year is $74,500 and interest accrued through 12-3112 could amount to another $125,000. So we are potentially looking at $199,500 today to bring and keep current the loan if we pass this. In addition, it would free up $275,000 in reserves. Mary Ann Kieschnick (142) said the loan was made to build facilities. They are paying their way. They have only been open two years and are just now fully booked. Lisa Bubela (30) asked how many business owners make a profit in the first two years. They are working hard to provide facilities that will in turn pay off the loan. Barbara Linney-Gonzales (88), new Treasurer of the ENC stated that the ENC originally had $1.5 million in loans and it is now $2.5 million. Last year they paid $71,000. She added that if you provide the funds, it will stay in SPJST and the A.M. Best rating will be better. Roy Haag (185) said it is not costing us; we are in essence giving them a 0% loan. CC Donnie Victorick (9) asked when they will start paying on principal. FCC Herman D. Weise (160) stated probably in about five years. Larry W. Pflughaupt (88) stated that other company mortgage loan rates are currently at 2.8% to 3.4%. ENC is paying 5% interest on their loan. Why don’t we lower the interest rate to 2.4% or 3% and give them a buffer so that they can pay on the principal. CC Donnie

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asked of SPJST is that we acquire the scanners for this to be accomplished. Three scanners were leased and 80 years of the Vestnik were scanned by the members of the Texas Czech Genealogical Society at no cost to SPJST. She felt $10,000 is a small token of appreciation we owe to this organization. They saved us over $500,000 on this project. In addition to this project they created the Veterans Wall of Honor which is located at the Czech Heritage Museum and the basement of the Home Office. This in turn has brought more visitors to the Home Office. Motion carried. • Approved as amended Justine Yeager (84) made a motion to remove “not to exceed three days” stating this would prevent a delegate from getting paid for additional days if needed. CC Donnie Victorick (9) indicated that it is understood that if an extra day is needed the delegate would be compensated. James Kocurek (40) seconded the change. Pat Fowler (25) inquired as to whether or not committees would get paid that came a day early. CC Donnie Victorick (9) confirmed that they would get paid. The amendment to the motion carried. Parliamentarian stated we now need to vote on the amended recommendation. Motion carried. • Approved SLP Brian Vanicek (24) asked that when phone conferences are being used when feasible to save costs, would this be covered under this? FCC Herman D. Weise (160) said it would. Susan Skrabanek (17) said she had no problem with this recommendation but asked how we would incorporate this when we spend numerous hours planning/preparing for an event that is close to home. FCC Herman D. Weise (160) stated simply to use the honor system when calculating your hours. Motion carried. FCC Herman D. Weise (160) thanked everyone for what they had accomplished in regards to the Financial Recommendations. Mary Steinman (154) asked if we vote on the Financial Recommendations as a whole and CC Donnie Victorick (9) indicated that a final vote was not necessary. She wanted clarification that what the delegates voted on were the words as in the changes on the given document.

OTHER RECOMMENDATIONS: • Approved • Approved • Approved FCC Herman D. Weise (160) stated originally that they had the amount at $3,000 but raised it to $4,500 since there are nine cemeteries. $500 per cemetery will be available if needed. • Approved • Approved • Approved – with modification Sokol Representative Jerry Milan (154) stated that at present there are three units of Sokol in Texas that are over 100 years old. In addition he indicated that most of the Sokol units started in a SPJST hall. It is the oldest original Czech organization in the U.S. that is still in existence (150 years). It was founded in 1862. It incorporates physical fitness, health, culture and community. This year the National Sokol Instructor School is in West, Texas. He then proceeded to propose that the second sentence of the recommendation be removed. CC Donnie Victorick (9) asked the Finance Committee if they would agree to this change. FCC Herman D. Weise (154) agreed to remove the second sentence. Jerry Milan (154) also made a motion, asking for an allocation increase to $5,000. Jesse Pospisil (29) seconded the motion. Johnnie Krizan (6) spoke briefly about the need of the extra funds. He stated that he is proud to work with Sokol in District 3 and that Sokol contributes to our SPJST lodges. They have brought a lot of Czech culture over and have preserved it. The money will be well spent. CC Donnie Victorick (9) called for the vote on the amended recommendation. The motion failed. He then proceeded to call for the vote on the recommendation. The motion carried. • Approved CC Donnie Victorick (9) asked Editor/Director of Communication Melanie Zavodny (246) to address this recommendation. Melanie informed the delegates that the Vestnik is celebrating its 100th anniversary. After numerous calls from individuals requesting heritage research, it was suggested that the Vestnik become archived. SPJST partnered with the Texas Czech Genealogical Society to accomplish this task. All that was

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ports the new products to help us remain competitive. The Insurance Committee agrees that new sales agents need ongoing training. Home Office Staff and State Field Reps were asked to stand and be recognized. CC Donnie Victorick (9) dismissed the Insurance Committee and called the Publication Committee members to the podium. Publication Committee Chairman (PCC) Jarolyn Popp (133) introduced the members and thanked Editor/Director of Communication Melanie Zavodny (246) for all her work. She also thanked Communication Assistant Katherine Morris (47) for her work and support. CC Donnie Victorick (9) dismissed the Publication Committee members from the podium, and stated that the Resolution Committee and the Grievance Committee will report tomorrow. The following Committees were recognized for their service: Tabulation Committee, Convention Order Committee, Grievance Committee, Sergeant-at-Arms, Resolution Committee, Timekeeper, Parliamentarian, and Credentials Committee. Thanks were given for serving on these important committees. CC Donnie Victorick (9) announced that because the 75-mile radius stipulation was removed from the by-laws, those interested in hosting the 2016 Convention should be ready to present proposals tomorrow. We will decide the location of 2016 Convention tomorrow. CC Donnie Victorick (9) also announced that Convention photos are still available for $30. Raffle tickets benefitting the Czech Heritage Museum are still available and the winner will be announced tonight at the Banquet. SLP Brian Vanicek (24) announced that the ENC will also be doing the drawing for the plants tonight at the banquet as well. CC Donnie Victorick (9) announced that doors for the Banquet will open at 6:30 p.m. Delegates were asked to remove personal items from tables. CC Donnie Victorick (9) recessed the Convention at 3:30 p.m. until 8:00 a.m. Wednesday morning.

SLS-T Leonard Mikeska (200) advised that a storm was coming and all delegates/visitors should roll up their vehicle windows. He informed everyone that the refreshments provided by SLP Brian Vanicek (24) were available in the foyer. Yesterday the refreshments were provided by SLVP Gene McBride (200) and tomorrow he will provide the refreshments. CC Donnie Victorick (9) asked for any additional reports from the Insurance and Publication Committees. ICC Susan Skrabanek (17) said the Insurance Committee had no further report. PCC Jarolyn Popp (133) stated that everything had been discussed and they had no further report. CC Donnie Victorick (9) called for a 25 minute break at 2:20 pm.

Annie, Vonda & Shirley 1:03 p.m. to 2:20 p.m.

Tuesday Afternoon – Session 8 2:55 p.m. – 3:30 p.m., June 12, 2012 CC Donnie Victorick (9) reconvened the convention at 2:55 p.m. with a check from the Directors for district delegates to be seated. The first order of business of this session is to approve the Session 5 minutes. Motion was made by Helen Kelner (28) to approve the minutes as corrected; seconded by Bettie House (202); motion passed. CC Donnie Victorick (9) stated that we have reached a point in the Convention that has never been reached at this time—we are basically through with proceedings. Officer elections and District Caucuses will be held tomorrow morning to have them on the same day. Jarolyn Popp (133) asked that the Insurance Committee members and Publication Committee Members be recognized. CC Donnie Victorick (9) called the Insurance Committee members to the podium. Insurance Committee Chairman Susan Skrabanek (17) introduced the members and stated that we have fallen short of our goals, but we did have some lofty goals. Some increases were seen, and the committee sup-

Regina, Debbie, Lisa 2:55 p.m. – 3:30 p.m.

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ing home. He served in the past as a convention delegate. CCC Frank Pajestka, Jr. (80) announced changes to credentials. These include: District II, Lodge 87, Joe Camp not seatedleaving the three remaining delegates with 191 votes each. District III, Lodge 92, Sherrie Kubala Watkins has returned now giving Al Kercho 145 votes, and the remaining delegates with 141 votes. CCC Frank Pajestka, Jr. (80) updated the Convention with the following:

Wednesday Morning – Session 9 8:05 a.m. – 10:10 a.m., June 13, 2012 CC Donnie Victorick (9) reconvened the Convention at 8:05 a.m. and asked District Directors to make sure delegates are seated. CC Donnie Victorick (9) thanked those in attendance at last night’s banquet and thanked band sponsors Bailey, Ramsey and Associates. Thanks were also given to the Home Office Staff and District Directors for their work in getting the banquet ready. CC Donnie Victorick (9) turned the Convention over to SLP Brian Vanicek (24) to conduct the Flag Day Ceremony. SLP Brian Vanicek (24) stated that this ceremony is to pay tribute to our flag and to the Veteran’s among us. SLP Brian Vanicek (24) called Hiram Dixon (87) forward to speak about the Ft. Hood Memorial. Hiram Dixon (87) gave information concerning the background of the Ft. Hood Memorial and the importance of never forgetting what happened at Ft. Hood on November 5, 2009, when 13 Americans lost their lives and 32 others were wounded. He stated that many delegates have walked past the spot where the memorial will be located on their way to the Convention. He sincerely thanked everyone who has contributed to this project and asked for their continued support. SLP Brian Vanicek (24) asked State Youth Director Frank Horak (80) to announce the winners of the State Flag Day Essay Contest. The state winner, Sammy Hoggard (202), son of Sandra Hoggard (202) and grandson of Lloyd and Bettie House (202), was called forward to read his winning speech titled, “Heritage and History-Hand in Hand”. SLP Brian Vanicek (24) called Veterans in the audience to come forward to be recognized and to lead the delegation in the Pledge of Allegiance. The Veterans were thanked for their service with a standing ovation from the delegation. SLS-T Leonard Mikeska (200) led the delegation in a prayer for all the servicemen and women-past and present. SLP Brian Vanicek (24) recognized Emil Matula (133) who served from 1940 to 1947 in Pearl Harbor and is now in an assisted liv-

District Delegates 1 27 II 61 III 50 IV 18 V 44 VI 35 VII 23 Totals

258

Lodges 14 15 12 8 8 14 8

Votes 3627 7395 6490 2280 7746 4452 3239

79

35,229

Justine Yeager (84) asked for District I numbers to be repeated. CC Donnie Victorick (9) turned the Convention over to CVC Leonard Jansa (160) to correct and approve the minutes of the previous sessions. Minutes from Session 6 were reviewed and corrected. Helen Kelner (28) moved to accept the minutes from Session 6 as corrected. James Kocurek (40) seconded the motion; motion passed. Minutes from Session 7 were reviewed and corrected. Glenn Kaminsky (28) moved to accept the minutes from Session 7 as corrected. Valerie Barta (202) seconded the motion; motion passed. Minutes from Session 8 were reviewed and corrected. Glenn Kaminsky (28) moved to accept the minutes from Session 8 with a second from Rita Spinn (80); motion passed. CC Donnie Victorick (9) asked FCC Herman D. Weise (160) to come forward to continue business. FCC Herman D. Weise (160) moved to reconsider action previously approved regarding the youth department. Glenn Kaminsky (28) seconded the motion. Justine

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cussed this with SLP Brian Vanicek (24) and it was agreed that it does not apply to local lodges. Dorothy Pflughaupt (88) asked if we can have it in writing that it does not trickle down to local lodges. Parliamentarian Roy Vajdak (88) stated that after the Convention adjourns, it is up to the Supreme Lodge to enforce the by-laws. SLP Brian Vanicek (24) stated that the proceedings from the Convention are in the Proceedings Booklet. Oscar Korus (107) asked if we would be better off amending the by-laws to specify Home Office only and not trickle down to the local lodge to avoid confusion. CC Donnie Victorick (9) stated that was not necessary. Justine Yeager (84) feels there is no need to re-open and re-visit the by-laws. Yvonne Marcaurele (30) agrees with Justine Yeager (84). She also stated that lodges that have their own set of by-laws should follow them. CC Donnie Victorick (9) clarified that when there is a conflict, the Supreme Lodge bylaws take precedence over local by-laws. Jarolyn Popp (133) asked if the Supreme Lodge has the right to change the by-laws. CC Donnie Victorick (9) answered no. FCC Herman D. Weise (160) stated another example of a matter in question-if the 2008 Convention ruling about retirees and retirement would carry forward. He said the Finance Committee was under the impression that the ruling would carry forward. He is concerned that we could end up leaving long term employees hanging. Jarolyn Popp (133) states that she doesn’t understand why we are discussing this unless we are changing the by-laws. Justine Yeager (84) concurred with Jarolyn Popp (133). FCC Herman D. Weise (160) clarified that this was not in the by-laws but in the proceedings. Larry W. Pflughaupt (88) agrees with FCC Herman D. Weise (160). Susan Skrabanek (17) said there is a reason why the proceedings from the past Convention is in the delegates’ packet and she emphasized it might be difficult to find committee members if they have to keep going back to proceedings from previous conventions. Mary Steinman (154) asked Parliamentarian Roy Vajdak (88) for clarification—is it possible for the Finance Committee to come back and re-open sections such as retirement? Parliamentarian

Yeager (84) called for a Point of Order to clarify if it is appropriate to re-open a previously approved motion that has already been approved in the minutes. Parliamentarian Roy Vajdak (88) stated that we are in an open business session, so it can be done. CC Donnie Victorick (9) read a statement taken from Robert’s Rules of Order that mentions only the prevailing side may present for reconsideration an issue previously voted on. This requires a majority vote. Parliamentarian Roy Vajdak (88) asked FCC Herman D. Weise (160) to give the delegation an explanation why this is being requested. FCC Herman D. Weise (160) explained this issue was brought to his attention and the Finance Committee felt that the delegates are here in session, and the best place to decide this issue is here with the delegation. The Finance Committee assumed once a decision at a convention is made it carries over from convention to convention. FCC Herman D. Weise (160) noted the last paragraph on the handout titled “Camp Travel Compensation”, which refers to the approved recommendation from the 2008 Convention that all SPJST Youth support the ENC. Mary Steinman (154) stated that was the reason she came to the microphone the day before, to make sure the delegation was voting on the wording as presented. CC Donnie Victorick (9) stated that the Supreme Lodge has the authority to grant any waivers or exceptions. Vote was taken by show of hands; motion failed. Ronnie Pflughaupt (1) stated that he remembers the 2008 Convention voted to build the ENC under the stipulation that each district would go to camp there. He stated that this is similar to supporting your family in business. CC Donnie Victorick (9) brought up another issue about whether an item in the by-laws has a trickle-down effect, such as not allowing relatives to the third degree to work at the Supreme Lodge. Does this affect local lodges and officers. Barbara LinneyGonzales (88) asked for clarification if this trickles down to local lodges. Parliamentarian Roy Vajdak (88) stated that the by-law applies to the Supreme Lodge only and not to local lodges. BLCC Ronnie Rieger (29) stated that the committee dis-

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at local lodges need to be voted on year to year. Parliamentarian Roy Vajdak (88) stated only the rules that are changing need to be voted on. Mildred Holeman (88) stated that we need to put our faith in the Supreme Lodge. Yvonne Marcaurele (30) stated that she has seen us move forward, but that some have a hidden agenda and try to cause confusion with the delegates. The delegates have a voice and should use it when voting for their District Director and have faith in the elected officials. SLS-T Leonard Mikeska (200) stated that the Supreme Lodge has been given the authority to take care of the health care issue and the care of retired employees and this should be a simple issue. Ronnie Pflughaupt (1) stated that there is no need to micro-manage and we should move on. Jarolyn Popp (133) moved that recommendations of the Finance Committee at the previous conventions that are not changed will remain in effect. James Kocurek (40) seconded the motion. Yvonne Marcaurele (30) would like to keep the recommendation but is concerned with any legal and ethical issues, such as losing the 501(c)(3) status. Jarolyn Popp (133) agrees, but is not sure about leaving it too broad. Kay Lynn Kovar (25) is concerned that financial changes can occur not only yearly, but daily as well. She used her dad as an example. Keith Kieschnick (142) asked if the Supreme Lodge has a receptionist and CC Donnie Victorick (9) stated yes. Keith Kieschnick (142) then asked if the convention delegates set the salary. CC Donnie Victorick (9) said no. Keith Kieschnick (142) then said that is a business decision and we should let the Supreme Lodge officers carry out their business. Justine Yeager (84) urged the delegates to support Keith Kieschnick’s (142) statement and let the Supreme Lodge officers carry out their business. Don Strickland (169) called for the Question. Larry W. Pflughaupt (88) asked if we could add the word “approved” to the motion to be “Approved recommendations of the Finance Committee from the previous conventions and are not changed will remain in effect.” Vote was taken; motion carried. CC Donnie Victorick (9) called for nominations for the office of President of SPJST. George Pauling (66) nominated Brian

Roy Vajdak (88) stated that we can. He referred the delegates to Article 2 through 25 that cover the Convention and he read Article 16 for the delegates. CC Donnie Victorick (9) stated that committee recommendations do not carry over to the next convention but by-laws do. Kyle Skrabanek (17) asked if we can reopen a topic under another recommendation title, such as Other Recommendations. Parliamentarian Roy Vajdak (88) said that would be in order. Larry W. Pflughaupt (88) referenced the 1996, 2000, and 2004 Conventions, and is concerned that we will have to re-visit the issue of retirements each convention. Parliamentarian Roy Vajdak (88) stated that is why we need a policy and procedure manual, and he clarified that yes, items need to be re-voted on from convention to convention. SLP Brian Vanicek (24) agreed that items such as health care for retirees need to be worked out and put in a policy and procedure manual. Larry W. Pflughaupt (88) gave a rebuttal and stated that he feels the delegates need to do that. Parliamentarian Roy Vajdak (88) stated that we are getting into fine lines. The Supreme Lodge needs to set some policies and procedures. It is the job of the Supreme Lodge to carry out the wishes of the delegates between conventions. Lynette Talasek (47) stated that she is confused; it seems that two sides are talking about two different things. Parliamentarian Roy Vajdak (88) clarified that the discussion is about whether motions enacted at one convention carry over to the next convention, and he rules that they do not. Johnnie Krizan (6) feels that the delegates are the governing body that makes decisions that some will like and some will not. He feels that at some point we need to draw an end to the Convention, and turn over the decisions to the Supreme Lodge. He referred to Article 32 in the by-laws that states that the Supreme Lodge is the governing body between conventions and we should let them govern. Kyle Skrabanek (17) moved that another recommendation under the Finance Committee recommendations be reconsidered. Motion died for lack of second. Mary Ann Kieschnick (142) asked for Point of Clarification—do the rules of order

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plans and was ready to keep working for SPJST. CC Donnie Victorick (9) called for nominations for the office of Supreme Lodge Secretary-Treasurer. Yvonne Garrett (97) nominated Leonard Mikeska (200). After the third call for nominations, Mildred Holeman (88) moved that nominations cease and Leonard Mikeska (200) be elected by acclamation. John Cannon (186) seconded the motion; motion carried. SLS-T Leonard Mikeska (200) brought forth his wife, Dorothy, and thanked the delegates for their continued confidence in him. He said he has a goal of a surplus of $24 million and loves to make money for us. CC Donnie Victorick (9) called for nominations for the office of Editor/Director of Communication. Helen Kelner (28) nominated Melanie Zavodny (246). After the third call for nominations, Barbara LinneyGonzales (88) moved nominations cease and Melanie Zavodny (246) be elected by acclamation. Sherrie Kubala Watkins (92) seconded the motion. Motion carried. Melanie Zavodny (246) called her husband, David Nauert, to come forward. She thanked everyone for their support and said she is excited to continue working on the Vestnik, which is the voice of the membership. CC Donnie Victorick (9) stated that this concluded the elections for the Home Office. He introduced Texas Czech Genealogical Society Membership Director Merlene Bravenec, who, on behalf of their President Charlene Hurta, wanted to express their extreme gratitude for the generous gift SPJST has given their organization. She stated that they look forward to continuing their partnership in scanning the Vestnik, research projects, and work on the Wall of Honor. SLP Brian Vanicek (24) asked his office staff to come forward and be recognized. He shared his thanks and appreciation for all they do for SPJST. SLVP Gene McBride (200) asked his staff to come forward and be recognized for all their hard work and dedication. SLS-T Leonard Mikeska (200) introduced his staff and thanked them for their hard work and dedication. Financial Secretary Roy Vajdak (88) introduced his staff and expressed his thanks for their support and

Vanicek (24) for President. After the third call for nominations, Jerry Milan (154) moved that nominations cease and that Brian Vanicek (24) be elected by acclamation. Mildred Holeman (88) seconded; motion carried. CC Donnie Victorick (9) called Brian Vanicek’s (24) family to come forward and join Brian, who expressed his thanks for the delegation’s vote of confidence. He will do his best to serve with honor and dignity. CC Donnie Victorick (9) called for nominations for the office of SLVP. Wanda Dorotik (30) nominated Gene McBride (200). Lila Doherty (255) nominated Delisle Doherty (255). Patsy Koslovsky (47) nominated Drew Popelka (47). After the third call for additional nominations, Don Strickland (169) moved that nominations cease. Ardis Bacak (40) seconded the motion. CC Donnie Victorick (9) asked the candidates to stand. CC Donnie Victorick (9) reminded the delegates to completely fill out the paper ballots. CC Donnie Victorick (9) recessed the Convention at 10:10 for tabulation of votes.

Regina, Debbie, Lisa 8:05 a.m. – 10:10 a.m.

Wednesday Morning Session 10 11:17 a.m. – 12:00 p.m., June 13, 2012 CC Donnie Victorick (9) reconvened the Convention at 11:17 a.m. He announced that an anonymous donation of $50 towards the Fort Hood Memorial Project had been received in memory of Leander Pflughaupt who was a POW in WWII. CC Donnie Victorick (9) announced the results of the SLVP election as follows: Delisle Doherty (255) – 5,522 votes Drew Popelka (47)– 7,300 votes Gene McBride (200) – 22,076 votes No runoff was necessary. Gene McBride was elected Supreme Lodge Vice President. SLVP Gene McBride (200) asked his wife, Frances, to come forward and expressed his thanks to the delegates for their confidence in him. He stated that he had some exciting

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Heritage Museum thanked all the delegates for their support and invited everyone to stop in and visit the museum any time. Lisa Bubela (30) recognized the Directors of the ENC. SPJST Rest Home President Donnie Victorick (9) recognized members of the Rest Home and Assisted Living Board. CC Donnie Victorick (9) called for the Resolution Committee (RC) to come forward with their report. RCC Lynda Novak (84) along with Committee Members Debbie Krpec (30) and Sharon Kaderka (29) gave their report (see appendix). Having no further business, CC Donnie Victorick (9) dismissed the Resolution Committee. CC Donnie Victorick (9) asked the Credentials Committee for any additional reports. CCC Frank Pajestka, Jr. (80) indicated that there were no further reports. CC Donnie Victorick (9) then proceeded to dismiss the Credentials Committee. CC Donnie Victorick (9) then proceeded to dismiss the Tellers Committee. He then called on the Grievance Committee Chairman Justine Yeager (84) for any report. Grievance Committee Chairman Justine Yeager (84) indicated the Committee decided to convey their sole grievance to the Supreme Lodge President. CC Donnie Victorick (9) then dismissed the Grievance Committee. CC Donnie Victorick (9) asked the Convention Order Committee if they had any additional report. Having none, the Committee was dismissed. CC Donnie Victorick (9) informed the delegates that a site needed to be selected for the next SPJST Convention. He then called on SLP Brian Vanicek (24) to state exactly what requirements and accommodations were needed of a facility to host the convention. SLP Brian Vanicek (24) stated that he had consulted with the other Officers and Editor/Director of Communication and they did not offer any other parameter other than that the 75-mile radius from the Home Office had been eliminated and to bring the matter to the delegates for consideration. CC Donnie Victorick (9) then asked for recommendations for a possible site for the 2016 SPJST Convention. George Pauling (66) proposed Waco. Patricia Bruce (88) and Dorothy Pflughaupt (88) felt Houston would be an

dedication. Editor/Director of Communication Melanie Zavodny (246) introduced her staff and thanked her for her help and all of the members who contribute each week to the Vestnik. CC Donnie Victorick (9) recessed the convention until 1:00 p.m. for lunch.

Annie, Shirley, and Vonda 11:17 a.m. – 12:00 p.m.

Wednesday Afternoon Session 11 12:45 p.m. – 12:55 p.m., June 13, 2012 CC Donnie Victorick (9) reconvened the Convention at 12:45 p.m. He introduced Financial Secretary Roy Vajdak’s (88) wife, Becky. District Caucus procedures were reviewed. SLS-T Leonard Mikeska (200) explained room assignments for the District Caucuses. CCC Frank Pajestka, Jr. (80) reported that Gerilyn A. Donnell (79) from District VII had left at noon. Therefore, Jerry Sijansky (79) would now have 274 votes and the other delegates in Lodge 79 would have 272 votes each. CC Donnie Victorick (9) dismissed the delegates to attend their District Caucus. The Convention would reconvene after all District Caucuses were finished.

Annie, Shirley, and Vonda 12:45 p.m. – 12:55 p.m.

WEDNESDAY AFTERNOON – SESSION 12 3:00 p.m. - 4:00 p.m. June 13, 2012 CC Donnie Victorick (9) reconvened the Convention at 3:00 p.m. and called on SYD Frank Horak (80) to recognize all DYCs and their assistants. State FAC Chester Jenke (258) recognized all FACs. SLVP Gene McBride (200) recognized all Sales Representatives. Czech Heritage Museum President Jerry Milan (154) recognized the Directors and staff of the Czech Heritage Museum. Kenny Lange with the Czech

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excellent site for the 2016 SPJST Convention. Sharon Kaderka (29) stated that Killeen was a prime location. Justine Yeager (84) suggested Dallas. Vote by show of hands was taken. The District Tellers were called upon to count the votes. Results were as follows:

Insurance Committee Susan Skrabanek Lodge 17, New Tabor

District Dallas I 0 II 0 III 12 IV 4 V 0 VI 0 VII 0

Publication Committee Floyd Kostelka Lodge 13, Dime Box

TOTALS

Killeen 26 44 10 14 13 20 19

16

Substitute Insurance Committee Bill Orsak Lodge 9, Snook

Houston Waco 0 0 0 15 0 27 0 0 29 2 15 0 2 0

146

46

Substitute Publication Committee Ann Schoeneman Lodge 9, Snook

44

DISTRICT II CAUCUS RESULTS

CC Donnie Victorick (9) stated that the 2016 SPJST Convention would be held again in Killeen. CC Donnie Victorick (9) announced the District Caucus results:

Director Jesse Pospisil Lodge 29, Taylor Substitute Director Hiram Dixon Lodge 87, Temple

DISTRICT I CAUCUS RESULTS By-Law Committee Ronnie Rieger Lodge 29, Taylor

Director Donnie Victorick Lodge 9, Snook

Substitute By-Law Committee Rita Spinn Lodge 80, Holland

Substitute Director Ben F. Trcalek, Jr. Lodge 17, New Tabor

Finance Committee Edwin Pechal Lodge 47, Seaton

By-Law Committee Richard Ford Lodge 13, Dime Box

Substitute Finance Committee Frank Pajestka Lodge 80, Holland

Substitute By-Law Committee Ben F. Trcalek, Jr. Lodge 17, New Tabor

Insurance Committee Dolores Skrabanek Lodge 47, Seaton

Finance Committee Thomas Cannon Lodge 186, Caldwell

Substitute Insurance Committee David Nauert Lodge 200, Bruceville-Eddy

Substitute Finance Committee Ronnie Pflughaupt Lodge 1, Fayetteville

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Publication Committee Tammy Whatley Lodge 29, Taylor

DISTRICT IV CAUCUS RESULTS Director Billy Rollwitz Lodge 49, Rowena

Substitute Publication Committee Lynette Talasek Lodge 47, Seaton

Substitute Director Bobby Davis Lodge 160, San Angelo

DISTRICT III CAUCUS RESULTS By-Law Committee Beverly J. Teplicek Lodge 49, Rowena

Director Johnnie Krizan Lodge 6, Cottonwood

Substitute By-Law Committee Sandra Jansa Lodge 160, San Angelo

Substitute Director John Engelke Lodge 66, Waco

Finance Committee Herman D. Weise Lodge 160, San Angelo

By-Law Committee Kay Lynn Kovar Lodge 25, Ennis

Substitute Finance Committee Lee Lehmann Lodge 215, South Plains

Substitute By-Law Committee Justine Yeager Lodge 84, Dallas

Insurance Committee Leonard Jansa Lodge 160, San Angelo

Finance Committee Michael Galler Lodge 66, Waco

Substitute Insurance Committee Arnulfo Rivera Lodge 219, El Paso

Substitute Finance Committee George Pauling, Jr. Lodge 66, Waco

Publication Committee Sharon Hohmann Lodge 160, San Angelo

Insurance Committee Daniel Roznovsky Lodge 183, Arlington

Substitute Publication Committee Charlene Dusek Lodge 160, San Angelo

Substitute Insurance Committee Sherrie Kubala Watkins Lodge 92, Fort Worth Publication Committee Bessie Petr Lodge 84, Dallas

DISTRICT V CAUCUS RESULTS Director Larry W. Pflughaupt Lodge 88, Houston

Substitute Publication Committee Lynda Novak Lodge 84, Dallas

Substitute Director Bradley Stavinoha Lodge 81, Needville

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By-Law Committee Mildred Holeman Lodge 88, Houston

Finance Committee Glenn Kaminsky Lodge 28, East Bernard

Substitute By-Law Committee Mary Ann Kieschnick Lodge 142, Houston

Substitute Finance Committee Rita Vanek Lodge 151, Wharton

Finance Committee Marceil Malak Lodge 88, Houston

Insurance Committee Jerome Hlavaty Lodge 153, La Salle

Substitute Finance Committee Ashley Victorick Lodge 88, Houston

Substitute Insurance Committee Charles Bucek Lodge 151, Wharton

Insurance Committee Helen Hegwood Lodge 88, Houston

Publication Committee Helen Kelner Lodge 28, East Bernard

Substitute Insurance Committee Janice Jahns Lodge 88, Houston

Substitute Publication Committee Jeanette Kaminsky Lodge 28, East Bernard

Publication Committee Lorenda Baldwin Lodge 139, Danbury

DISTRICT VII CAUCUS RESULTS Director Bob Bayer Lodge 107, Floresville

Substitute Publication Committee JoAnn Buri Lodge 88, Houston DISTRICT VI CAUCUS RESULTS

Substitute Director Glen Pruski Lodge 107, Floresville

Director Karen Kaspar Lodge 30, Taiton

By-Law Committee Bettie House Lodge 202, Jourdanton

Substitute Director Glenn Kaminsky Lodge 28, East Bernard

Substitute By-Law Committee Oscar Korus Lodge 107, Floresville

By-Law Committee Joe Siptak Lodge 4, Hallettsville

Finance Committee Roy Haag Lodge 185, New Braunfels

Substitute By-Law Committee Annie Vahalik Lodge 4, Hallettsville

Substitute Finance Committee Valerie Barta Lodge 202, Jourdanton

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Insurance Committee Wendy Pruski Lodge 107, Floresville Substitute Insurance Committee Jerry Sijansky Lodge 79, Corpus Christi Publication Committee Jarolyn Popp Lodge 133, San Antonio Substitute Publication Committee Colleen Jenke Lodge 258, Seguin SL Officers, Directors, and Standing Committee members elected were asked to come forward and be installed by Past Director Frank Klinkovsky (47). CC Donnie Victorick (9) asked all Standing Committees to meet and elect a Chairman and a Secretary before they leave the convention. Frank Pajestka, Jr. (80) moved to accept the remaining Convention minutes as written. Keith Kieschnick (142) seconded the motion; motion carried. Mary Steinman (154) moved to retire the colors and to adjourn the convention after the installation of officers and the singing of God Bless America. James Kocurek (40) seconded the motion; motion carried. The Convention adjourned at 4:00 p.m.

Annie, Shirley, and Vonda 3:00 p.m. – 4:00 p.m.

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APPENDIX

SPJST 31st Convention 2012 33


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LIST OF DELEGATES District I

1 1

Debra Pflughaupt Ronald Pflughaupt

9 9 9

Bill Orsak Ann Schoeneman Donnie Victorick

13 13 13

Doris Ford Debbie Kostelka Carla West

17 17 17 17 17 17

Lisa Blum Randy Gaas Evelyn Henry Kyle Skrabanek Susan Skrabanek Ben F. Trcalek, Jr.

38

Donna Zimmerhanzel

39

Dianna Everett

51

Calvin Hlinsky

67

Adrienne Kobza

141

Josephine Bear

169

Don Strickland

179

Ricky Weyand

186 186

Linda Cannon Thomas Cannon

189

Charles Munday

201 201 `201

Elaine Duron Clara Susen Jenell Zettel District II

15 15

Sandra Fischer Douglas Williams

18 18

Evelyn Gustafson Artie Monson

34

18 18 18

Irene Vrabel Johnny Vrabel Charles Wilson

20 20 20

Norma Cavanaugh Edward J. Stoll, III Emilie Tischler

24 24 24 24 24 24

Jason Hoelscher Shirley Hoelscher Barbara Macek Margaret Mikeska Wilbert Mikeska Daniel Wilde

29 29 29 29 29 29 29 29 29 29 29 29 29

Laverne Eulenfeld Bobby Eulenfeld Cristy Girod Leonard Kaderka Sharon Kaderka Albin Machu Jesse Pospisil Linda Pospisil Ronnie Rieger Lyn Rieger Connie Voigt Wayne Voigt Tammy Whatley

47 47 47 47 47 47 47 47 47 47 47 47 47

Leroy Dana Frank Klinkovsky Patsy Koslovsky Joyce Kraatz David Pechal Edwin Pechal Calvin Skrabanek Dolores Skrabanek James Skrabanek Joyce Skrabanek Lynette Talasek LaVerne Vanicek Edwin Vasicek

48 48

Bobby Wuensche Ruth Ann Wuensche

80 80 80 80 80

Connie Horak Frank Pajestka, Jr. Helen Pajestka Risa Pajestka Rita Spinn


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87 87 87 87

Joe Camp Jennifer Davidson Hiram Dixon Diane Troy

155

Joe Motl

177 177 177

Bernice Hutka Donald McCrea Shirley McCrea

182

Donald Beckendorf

187 187

Johnnie S. Haak Mona F. Larson

200

David Nauert

246

Wayne Orange District III

6 6 6 6 6 6 6

Evelyn Bezdek Peggy Dobecka Barbara Jean Hykel Johnnie R. Krizan Milton Peterson Georgie Soukup Don Urbanovsky

25 25 25 25 25 25

Mildred Dolezal Patricia Fowler Van Fowler Kay Lynn Kovar Margaret Krajca Betty Macalik

35 35 35

66 66 66

Michael Galler Dana McAdams George Pauling, Jr.

84 84 84 84 84 84 84 84

Anne Cowan Jerry Manak Joann Manak Lynda Novak Bessie Petr Cheryl Petr Vicki Sims Justine Yeager

92 92 92 92 92

Al Kercho Mary Ann Krivanek Mary Cecilia Krivanek Sherrie Kubala Watkins Evelyn Scaff

130

John Vrla

154 154 154 154

Appa Hargiss Jerry Milan Lesli Milan Mary Steinman

180

Rhonda Hurtik

183 183

Daniel Roznovsky Patricia Sill

204

Norman Kneschk District IV

Barbara Pavelka Gene Pavelka Randy Pavelka

49 49 49

Laura Pospichal Sylvia Rollwitz Beverly Teplicek

157

Cynthia Kristinek

54 54 54 54 54 54

Freddie Kaluza Mary Lou Mynar Maxine Sefcik Terry Sefcik Marcela Vaculik Wilburn Willis

160 160 160 160 160 160

Charlene Dusek Sharon Hohmann Brenda Holik Leonard Jansa Sandra Jansa Herman D. Weise

66 66 66

Diana Engelke John Engelke Debbie Galler

207

Joyce Kotulek

215

Lee Lehmann

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219 219 219 219

Ana Ahumada Baltazar Nunez Arnulfo Rivera Bertha Rodriguez

229 230

Jesusita Hudson

142 142 172 172 172 172

Keith Kieschnick Mary Ann Kieschnick Jerome C. Dressler, Jr. Josephine Mayfield Robert Mayfield Helen Schewe

Jimmy Slatton

196

Mary Machacek

255

Lila Doherty

District V

81 81

Bradley Stavinoha Thomas Stavinoha

88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88

Eugene Barcak Georgia Barcak Patricia Bruce Fred Buri JoAnn Buri Vernell Fojt Carol Globke Kathleen Green Donald Havemann Gladys Havemann Helen Hegwood Mildred Holeman Janice Jahns Wallace Jahns Barbara Linney-Gonzales Edward Lorenz Mamie Lorenz Marceil Malak Carolyn Pechacek Dorothy Pflughaupt Josephine Pflughaupt Larry W. Pflughaupt Leander Pflughaupt Lynn Pflughaupt Dennis Roeder Carol Stayton Ashley Victorick Linda Wehring

91 91

William Locke Vonda Smesny

139 139

David Baldwin, Jr. Lonnie Lostak

142 142

Dennis Hermis Alice Jochen

District VI

36

4 4 4 4

Gayenell Chudej Shirley Kalmus Joseph Siptak Helen Zabransky

8

Leo Jares

23

Eddie Vrana

28 28 28

Glenn Kaminsky Jeanette Kaminsky Helen Kelner

30 30 30 30 30

Lisa Bubela Wanda Dorotik Karen Kaspar Debbie Krpec Yvonne Marcaurele

32 32 32

Kathy Ahlstrom Michael Ahlstrom Lois Elles

40 40 40 40 40 40 40

Ardis Bacak Vlasta Bartos Mary Ann Cerny Delia Floyd Jerry Gensler Carmen Kocurek James C. Kocurek

41

Franklin Jurek

63

Elaine Berkovsky

97

Yvonne Garrett

143

Esterleen Spann


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151 151 151

Charles Bucek David Bucek Rita J. Vanek

153 153

JoAnn Andel Jerome Hlavaty

184 184

107 107 107 107

Elizabeth Bielefeld Oscar Korus Glen Pruski Wendy Pruski

117

Kathryn Marek

GayeNell Baetz Elmer Michna

133 133 133

Michelle Popp Click Jarolyn Popp Vicki Reese

District VII

185

Theresa Haag

202 202 202

Valerie Barta Bettie House Regina House

258

Chester Jenke, Sr.

26

Edwin Wallek, Jr.

79 79 79 79 79

Larry Elzner Gerilyn Donnell Jerry Sijansky Marcus Rebecek Virginia Rebecek

107 107 107 107

Robert J. Bayer Pauline Bayer Larry Bertrand Roxanne Bertrand PROCLAMATIONS AND CORRESPONDENCE

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PRESIDENT’S PRE-CONVENTION REPORT

The following statistical data reflects our Society’s performance in key reporting areas. Life insurance in force as of December 31, 2008, compared to December 31, 2011, decreased from $932.8 million to $896.4 million, representing a decrease of 4.1 percent. Total life insurance certificates in force decreased from 51,970 as of December 31, 2008, to 48,734 as of December 31, 2011, representing a decrease of 6.2 percent. These declines can be attributed, in large part, to insurance certificates that lapsed during this period. Please note that these certificate counts do not include annuity contracts. Even as the average number of life insurance certificates issued annually has declined over the past four years, efforts have been made to significantly improve sales persistency over the same period. Thanks to the Supreme Lodge and everyone in the SPJST Insurance Department for helping to move the Society in this direction. While new insurance production remains an important element in the growth of SPJST, sales persistency — the quality of business written — remains a critical factor in our success. Sustainable growth is growth that is repeatable, systematic, and aligned with the mission of the Society; moreover, it represents the underlying strength and vitality of SPJST’s core business. Sustainable growth, I believe, can and will be achieved through a concerted effort to grow out of our existing lodges, through the servicing of our existing members, their families and their circles of friends. To achieve sustainable growth, the products and services — financial as well as fraternal — that we offer to our members must meet and exceed expectations. The training and support we offer to our sales agents and lodge leaders must be equally superior. SPJST’s business philosophy — to work to establish a reputation for quality among members, sales agents, employees, and management remains an ongoing initiative. Annuity deposits in force as of December 31, 2008, to December 31, 2011, increased from $92.2 million to $117.1 million, representing an increase of 22.3 percent. The

Dear Brothers and Sisters, Managing the SPJST since the 2008 Convention required that Supreme Lodge members review and understand the factors that drive fraternalism, profitability, and growth. The Supreme Lodge met on a quarterly basis to review fraternal operations, discuss the insurance program, investments, risk management and an ever-changing array of business challenges as well as opportunities. These meetings were generally enlightening, productive, and lively. More detailed audit procedures introduced in 2009 as well as more detailed expense accounting and budgeting procedures have resulted in a more cost efficient and accountable operation. Additionally, performance expectations have been raised. In 2012, we observe the 115th anniversary of the founding of SPJST. We celebrate not just for having survived, but for being vibrant — alive with the same energy, spirit, and promise that must have filled the Fayette County Courthouse in La Grange, Texas, on December 28, 1896, when 25 Texans of Czech descent met for the purpose of organizing a new fraternal benefit society in the State of Texas. Going forward, the success of SPJST will depend on our continued ability to unite, innovate, and achieve our sales, investment, and fraternal objectives even as we stay true to our core values. These ideals, as outlined in the Preamble to our By-Laws, are as follows: To provide and promote fraternal and social fellowship among members. To endeavor to keep alive the cherished traditions, customs, heritage, culture and language of our forefathers. And generally, through moral, spiritual, and economic respect, to encourage benevolence and humanity through the Society with sound practical life insurance for its members. Gauging Performance SPJST’s performance of over the past four years can be gauged in several ways.

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increase can be attributed to members seeking to ensure a guaranteed rate of interest on their contributions during a period of extreme volatility and uncertainty in the financial markets. Correspondingly, total admitted assets of the Society also increased, from $185.1 million to $217.8 million, over the same period, representing an increase of 15 percent. Vice President Gene McBride presents a detailed overview of insurance and annuity sales in his report. Total surplus increased from $13.0 million as of December 31, 2008, to $16.4 million as of December 31, 2011, representing an increase of 20.7 percent. This increase can be primarily attributed to an improvement in the market value of Society investments. It is especially gratifying to report to you that the negative trend lines of the mid2000s have been reversed, especially as that relates to reclaiming surplus, and posting positive net income from operations. The improvements in bottom line results reflect the corrective and progressive actions taken by SPJST over the past four years to build and strengthen the financial structure of our fraternal order. Our financial performance through the first four months of 2012 has been good. Secretary-Treasurer Leonard Mikeska and Financial Secretary Roy Vajdak offer detailed explanations of these and other items related to SPJST’s investments and financial statement in their reports. Thanks to everyone in the Accounting and Investment areas for their attention to detail and redoubling of efforts during what has been a period of management transition in these two areas. While we can be proud of the progress that has been made over the past four years, vigilance in the area of compliance remains a watchword. One of the most significant challenges that SPJST had to deal with over the last four years was the issue of premium guideline violations identified by the office of the Secretary-Treasurer in 2009. It was reported in the October 2009 Supreme Lodge meeting that numerous SPJST Universal Life insurance certificates had guideline premium violations and/or had been categorized as modified endowment contracts.

Following a comprehensive review, a total of 188 premium guideline violations, some going as far back as 1988, were identified and addressed. It was determined that computer programming errors had led to the problem which has since been corrected. After consulting with our attorneys and the Internal Revenue Service, the SPJST Supreme Lodge made the decision to not pass the burden of tax liability on the violated accounts to our certificate holders but rather to absorb the impact of the decision and correct the errors in a diligent manner. As a result and under the terms of Proclamation 2008-40, SPJST settled on a negotiated amount of $1,087,106.20 with the IRS to settle this matter. This payment appears under Exhibit 2 - General Expenses as line item 4.5 “Expense of investigation and settlement of certificate claims” on page 11 of SPJST’s 2011 Annual Statement. It is important to note that SPJST — along with other fraternal and even commercial insurers — faces more regulation, a wider range of stakeholder expectations, and more public scrutiny than ever before. As a result, quality control and compliance issues remain high on the Supreme Lodge’s list of priorities. By taking a strategic and proactive approach to these matters, the Society is operating in a manner that warrants and justifies the confidence of our devoted members. Fraternal Recognition Over the past four years, SPJST’s fraternal venue has expanded to include a wide range of adult- and youth-oriented activities as well new opportunities for community service. As a result of these efforts, SPJST and its members received considerable recognition on the state level through the Fraternal Alliance of Texas and on the national level by the American Fraternal Alliance. The Alliance’s national “Fraternalist of the Year” award is presented annually to recognize the nation’s top volunteer among the almost 10 million members affiliated with the Alliance’s member societies. The award goes to a fraternal benefit society member who has provided outstanding volunteer

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service in his or her community and excellent leadership in his or her local lodge throughout the past year. All 72 member societies of the Alliance are invited to nominate their top volunteer. In recent years, this high honor has been bestowed upon SPJST fraternalists three times, beginning with Brother Bob Hagen of SPJST Lodge 246, Morgan’s Point in 2007. Subsequent honorees have included Sandra Hoggard of Lodge 202, Jourdanton in 2009 and Susan Skrabanek of Lodge 17, New Tabor in 2010. Ronnie Pflughaupt of Lodge 1, Fayetteville received recognition as first runner-up for the honor in 2008. Awards and recognition are a positive affirmation, but they don’t compare to the satisfaction of knowing that SPJST’s fraternal program is the real deal when it comes to meeting its fraternal obligations on an everyday basis.

drama, and public speaking. Starting in 2011, State Youth Director (SYD) Frank Horak initiated a re-emphasis on the dramatic performance elements of YAD competition. Already, it appears, the emphasis is making a positive difference. YAD talent and royalty competition teaches young people to learn the value of teamwork. Working together to be part of something bigger than themselves can be very rewarding and help them to achieve a sense of self-worth. It allows them to learn to lead as well as follow. It can also be just plain fun! SYD Frank Horak and our District Youth Counselors (DYCs) planned and directed activities and programs as well as formulated the rules and regulations for our youth program. Brother Horak, aided by Fraternal Services Specialist Tammy Martinez effectively managed the multitude of activities that comprise the SPJST’s youth program. The collaborative ties that exist within the SPJST Youth Program and that are nurtured by our DYCs, their assistants, and youth leaders represent a tremendous devotion of time and spirit. They demonstrate the importance of working together to achieve common goals. Their commitment represented a powerful and driving force behind the success of the SPJST Youth Program. A special thanks to those DYCs, youth leaders, youth club members, and adult volunteers who helped to promote the colorful Czech heritage and culture by fielding Beseda dance groups throughout the state. SPJST Beseda dancers routinely perform at the Texas State Fair Multi-Cultural Celebration, Caldwell Kolache Festival, and — most recently — on March 2, 2012, Texas Independence Day — at the Texas State Capitol in Austin.

SPJST Youth Program Let’s begin with our youth program. Through active participation in local SPJST Youth Clubs and statewide events, young members between the ages of five and 18 developed a greater awareness of the common bonds that we all share. SPJST youth clubs also worked with community-based organizations, tailoring programs to fit their local needs. Additionally, SPJST’s summer camp program fostered a spirit of cooperation, an appreciation of the natural environment, and helped campers to acquire leadership fundamentals. SPJST christened the newly constructed SPJST Education and Nature Center at Cooper Farm in 2010. Past SPJST State Youth Director John Hoelscher took on the role of SPJST ENC Executive Director in that same year. Congratulations to Brother Hoelscher and ENC Directors for stepping up to the challenge and bringing this project to fruition. Additionally, SPJST sponsored Youth Achievement Day (YAD) competitions on the district and state levels as an educational activity for SPJST youth club members. Contestants fielded entries in a range of areas including arts and crafts, music, dance,

Scholarship Program Thanks to all of our members who donated money to support the SPJST 100 Pennies Scholarship Fund Drive, Memorial Fund, or contributed to our endowed scholarships over the past four years. Your contributions combined with SPJST’s annual cash allocation enabled many of our deserving young people to pursue a higher education.

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During the four-year period from 2008 to 2012, a total of 286 scholarships totaling $292,000 were presented. This total includes the 35 scholarships — 27 Merit Scholarships and eight Royalty Scholarships — that were awarded in conjunction with the SPJST Youth Program at State Youth Achievement Days. Keep in mind, this total does not include the many scholarships that were awarded by our local lodges.

services that offer protection, that celebrate achievement, and that bring people together. Insuring and enriching lives — that’s what we’re about. So far, we’ve touched on a lot of areas, but you know, it represents only part of the big fraternal picture. That grand, panoramic image only comes into view when you step back and take note of the hundreds of local lodge events that have taken place over the past four years. That’s not an overstatement. SPJST’s weekly newspaper, Vestnik, observes its 100th anniversary in 2012. The Vestnik holds the distinction of being the nation’s only weekly fraternal publication. Look through any typical issue of the Vestnik over the last four years and what did you see? Members doing good things for each other and for their communities. That’s what it’s all about. In lodges all over the state, men, women, boys, and girls committed their time and energy to supporting worthwhile causes. They are taking the best that SPJST has to offer — a tradition of helping people to care for their families — and are extending these values to their communities. To name a few: Join Hands Day events, Tarok tournaments, bowling tournaments, domino tournaments, horseshoe tournaments, district meetings, fundraisers, lodge picnics, dances, turkey shoots, stuff the bus, barbecue cookoffs, outdoor extravaganzas, cemetery cleanups, care packages for soldiers, auction sales, reverse raffles, polka festivals, lock-ins, Beseda performances, soup tastings, bingo games, building renovations, hall restorations, nursing home visits, pull tab drives, food drives, pet food drives, clothing drives, eyeglass drives, and dozens of drives up and down the streets of towns and cities all over Texas pulling the SPJST floats — more than 160 parade appearances over the past four years! Thank you to Vestnik Editor/Director of Communication Melanie Zavodny and husband, David Nauert, for the wonderful job they have done in prepping SPJST’s two floats for presentation and for coordinating their many appearances throughout the state. And, certainly, thanks to Melanie for her extraordinary communication efforts on behalf of SPJST. A detailed summary of

Doing Good for Each Other Whereas Brother Horak tended to matters of business relating to the youth program, State Fraternal Activities Coordinator Chester Jenke provided adult lodges across the state with assistance in the area of officer training, lodge development, and fraternal programming. Brother Jenke also organized many of our SPJST statewide events and contests. SPJST is fortunate to have Brother Jenke on staff. With more than 24 years of fraternal experience, he knows what he is talking about because he and his wonderfully creative and supportive wife, Colleen, have lived it. Thanks again to Fraternal Services Specialist Tammy Martinez, who enabled Brother Jenke to stay on the road by handling fraternal activity administrative functions as well as organizing SPJST statewide tournaments and assisting with local lodge and district activities. Thanks, too, to our District Fraternal Activities Coordinators as well as all of our district officers for the many and varied services that they provided to the lodges in their districts. The idea of fraternalism — of doing good for each other and for our communities — is a powerful motivator once we allow the fraternal spirit to guide us in our mission — in our lodges, in our youth clubs, in our district and state activities, and in the affairs of the SPJST Supreme Lodge and Home Office. The last four years have been extremely productive for SPJST and for fraternalism. That’s not to say we didn’t have our challenges, disagreements, and even a few reconciliations along the way. That’s the way it goes with families . . . In SPJST, we are “family” if not by blood, then by common bond. Through 110 lodges throughout the state of Texas, SPJST offers products and

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these activities appear in the Publication Committee Report. In August 2011, SPJST hosted the Fifth Annual Corpus Christi Getaway Weekend. The event is getting bigger and better all the time. More than 340 attendees enjoyed fun in the sun and fraternalism with a cruise theme. There was food, music, entertainment, games, and lots of kolaches—thanks to our good friends at Lodge 79, Corpus Christi. We are looking forward to hosting the Sixth SPJST Summer Getaway August 10 to 12 in Corpus Christi. This highlyanticipated event is emblematic of how SPJST’s fraternal program has evolved in order to remain relevant in the active lives of our members.

SPJST organizers worked with other Texasdomiciled fraternal benefit societies to coordinate and host Legislative Awareness Week at the Texas State Capitol in Austin, two very successful events which included picnics on the grounds of the State Capitol for state legislators and their staffs. Building strong, personal relationships with our public officials and their staffs is an important aspect of generating public attention and support for fraternal groups and the good work that they do. Building legislative support for SPJST is an idea that applies as much on the local lodge level as it does on the state and national levels. Thanks to our lodge leaders who extended invitations to their elected officials to attend and participate in SPJST lodge functions since the 2008 convention. For the past three years, SPJST has been involved in raising awareness and funding for the November 5th, 2009 Fort Hood Memorial, a project conceived by SPJST State Field Representative Hiram Dixon late in 2009 to pay tribute to the 12 American soldiers and civilian contractor gunned down at Fort Hood on November 5, 2009. The memorial will serve to honor the victims and provide a historic record of this tragedy in order to deliver a message of vigilance for generations to come. The response to the memorial project has been gratifying as veterans groups, businesses and civic organizations have been stepping up to donate or pledge support. To date, more than $106,000 has been raised for the memorial. SPJST lodges assisting in this effort were recognized at the 2012 SPJST Awards Banquet. Approximately $500,000 will be needed to bring the project to completion. This amount includes an endowment to be established from the funds collected to provide for the perpetual maintenance and upkeep of the memorial and garden. Even as SPJST will continue to assist in efforts to raise awareness and funding for this project, our Home Office emphasis in months ahead will be on generating support for the Czech Heritage Museum and Genealogy Center in Temple and SPJST Education and Nature Center in Fayette County.

Fraternal Outreach Over the past four years, the SPJST Home Office continued to show strong support for a multitude of annual public events, most notably helping to sponsor such events as National Polka Festival in Ennis, Westfest in West, Caldwell Kolache Festival, Temple Czech Feszt, and Heritage Day at the Texas State Fair. The Society also offered its support to an array of cultural and heritage groups including Czech Educational Foundation of Texas (CEFT), Texans of Czech Ancestry (TOCA), Czech Heritage Society (CHS) of Texas, Texas Czech Heritage and Cultural Center (TCHCC) in La Grange, Czech Cultural Center Houston, and Sokol. It was an honor for us to work with and to be affiliated with each of these fine organizations and the projects that they championed. I would be remiss at this point were I not to offer my thanks and appreciation to the Texas Czech Genealogical Society (TCGS) for the volunteer support that they extended to SPJST over the past two years, especially as that relates to scanning back issues of the Vestnik for future retrieval by our members and others doing research. The SPJST Home Office basement has taken on a new life as it is now home to the TCGS’ Czech Veterans’ Wall of Honor and Czech Military Museum. Demonstrating a strong, united fraternal front, in May 2009, and again in May 2011,

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On a related note, the SPJST Education and Nature Center — an independent 501(c)(3) non-profit organization ordained by the 2000 SPJST Convention — enjoyed its first full year of operations in 2011. That represented a great achievement for supporters in that this project that had been — in one form or another — on and off the drawing boards for more than 48 years. Located in Fayette County, the project embodies the ideas of wildlife preservation, conservation, and personal achievement. Also in 2011, the SPJST Library, Archives and Museum, (Czech Heritage Museum) — another 501(c)(3) non-profit organization established by the 2000 SPJST Convention — made significant strides in establishing its base of operations at its newly refurbished headquarters located at the corner of Third Street and French Avenue in Temple. Organized as a result of actions by the 1956 SPJST Convention, the S.P.J.S.T. Rest Homes in Taylor and Needville are also a 501(c)(3) non-profit enterprise. In March 2010, S.P.J.S.T. Rest Home No. 1, Taylor opened a new addition to its assisted living accommodations to meet the needs of its near-capacity resident population. In 2011 and 2012, the SPJST Supreme Lodge laid the groundwork for the establishment of The SPJST Foundation — a 501(c)(3) non-profit enterprise, which will seek to administer to the support and development of a number of cultural, educational, and humanitarian programs and causes. We are presently awaiting an IRS ruling on the establishment of this far-ranging fraternal endeavor. The word “lodge” has two meanings to SPJST members. It is both a place where local SPJST meetings are held and a collective term for the members who meet there. SPJST lodges help to define and convey the fraternal ideal of “doing good for each other and for the communities that SPJST lodges seek to serve.” A strong lodge strives to keep members informed of the life insurance benefits and other fraternal benefits afforded through membership in SPJST. What’s more, belonging to a strong lodge conveys a sense of tradition and responsibility. To help

lodges achieve these worthy objectives, the SPJST Supreme Lodge has developed a checklist of 10 SPJST Model Lodge Best Practices. We are now in the introductory stages of introducing these “best practices” to our lodges. A Positive Reflection The success of SPJST over the preceding four years reflects well on everybody — our members, lodge officers, district leaders, Supreme Lodge, Editor/Director of Communication, and Home Office staff and field personnel. I especially want to recognize the tremendous dedication and work ethic of my assistant, Sandra Dubcak. She’s great at keeping me and the Fraternal Department on track. Her ability to effectively multi-task a dozen projects at a time is incredible. Also, I want to recognize Human Resources Administrator Debbie Klinkovsky for her cost-effective restructuring of the Society’s multiple internal insurance plans as well as for her devotion to matters related to the personnel and benefits area. Finally, I want to extend my appreciation to our two part-timers in the Fraternal Department — Sister Ruth Hanusch and Brother Frank Klinkovsky — for the conscientious job that they do in helping the Fraternal Department remain responsive to the needs and concerns of our members. Ruth is now in her 35th year of service to SPJST. Frank has been around SPJST for a lifetime in positions ranging from DYC and State FAC to District Director and local lodge President. And top it off, he speaks great Czech as well. As a lifelong member of SPJST, it has been an honor to serve you as President these past eight years. We’ve had a great run and are on track to achieve new heights in the years to come. With a deep awareness of the responsibility conferred by your trust, I humbly ask for your support for President for the next four years. I will continue to work hard for you as we carry our fraternal mission. Fraternally, Brian Vanicek Supreme Lodge President —SPJST—

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VICE PRESIDENT’S PRE-CONVENTION REPORT

gin. In 2010, we achieved 1,552 applications written. Of those, 371 were youth apps written. Insurance written was $85,148,553 with $700,227.34 premium income. In 2011, we proceeded with 1,198 applications written with 241 of those being youth applications. Insurance written was $74,068,585 with $582,146.29 premium income. In 2009 to 2011, we experienced a drop in the economy as well as suffering from lapses of certificates which dropped our production in those three years. We are pleased to report that we have turned around the lapse challenge, and the ratio is holding at 85 percent and above. We think 2012 will show a positive production for the year. I recognize my field staff for a great job. Thanks to State Field Representatives Delisle Doherty in Districts One and Five; Hiram Dixon in District Two; Phillip McBee in District Three; Bobby G. Davis in District Four; Karen Kaspar in District Six; and Don J. Strickland in District Seven. Thanks to the Home Office staff in the Insurance Department. They are Executive Assistant to the Supreme Lodge Vice President Cynthia Hutka, Assistant to the Supreme Lodge Vice President Lisa Mills, New Business Technician Donica Zabcik, Underwriter Doni Powell, Administrative Specialist to the Insurance Department Socorro Wolcott, Certificate Issue Technician Doris Tyroch, Customer Service Specialist Susan Shofner, and Insurance Technician Karen Franklin. These staff members work very hard to keep the flow of sales going without any backlog. Member service is always a top priority. I pledge to you that this commitment of providing benefits to our members will continue to be top priority for the SPJST Insurance Department. In closing, I would like to say it has been a great 12 years serving as your vice president. I feel very optimistic about the future of SPJST and would very much like to remain a part of our Society’s growth and success. With this feeling, I ask the delegates at the 31st SPJST convention to re-elect me and allow me to serve you for four more years.

Dear Members, This pre-convention report is being submitted in accordance with Article 3(d) of the By-Laws. It has been an extreme honor to have served as your vice president over the past 12 years. This report summarizes and recaps the activities and successes of the past four years since the 2008 convention. In 2008, I presented a program to the Supreme Lodge that was adopted. It was called Celebrate ‘08. The theme of this program was to celebrate SPJST’s proud past, present, and future and its membership, all that SPJST offers its members and communities across Texas. Our mission for this program was to increase membership, premium income, and face amount of insurance; to enhance fraternal and youth programs; and to foster a common bond within our membership and lodges throughout Texas. Marketing Strategy Our top priority has been and continues to be increasing our membership and premium income. Our membership was declining, so we introduced an incentive program in 2001. We continue to use the program today. This plan motivates and rewards sales agents, lodges, lodge officers, youth clubs, youth leaders, district youth counselors, and members. This has motivated our sales agents, youth members, lodges, and lodge officers to promote the program and secure new members. We have also developed new products that are competitive in today’s market. In 2008, our goal was 2,345 applications written. We wrote 3,562 applications. Of those, 724 were youth. Insurance written for 2008 was $203,739,061 with $1,440,905.41 in premium income from life products. In 2009, we increased the goal to 2,500 which was about 5 percent more than the preceding year. We ended with a total of 1,868 applications written with 454 being youth. Insurance written was $107,344,023 with $784,113.42 in premium income. We fell short of our expectations by a small mar-

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If you have any questions or concerns, feel free to contact me. I will be more than happy to assist you. Fraternally, Gene McBride, FICF, CFFM Supreme Lodge Vice President —SPJST—

• Secretary-Treasurer is responsible for responding to correspondence not addressed to another department and attesting to all official documents as the corporate secretary. • Supervising the Home Office building and all real estate belonging to the Society. • Managing the claims department and paying all death claims

SECRETARY-TREASURER’S PRE-CONVENTION REPORT

• Filing of various compliance reports, participating in Supreme Lodge and committee meetings, and various other corporate responsibilities. Participating in management of the Society and providing goals for meeting the Society’s mission. Although I assumed management of the Secretary-Treasurer’s position on August 1, 2008, some of the information in this report will date back to January 1, 2008. Here is a chart illustrating growth of our Society assets.

Dear Members, The purpose of this pre-convention report is to comply with Article 32 (g) of our By-Laws and to share a summary of management and performance information with you. The report will also include highlights of selected information from our financial statements. I will begin by sharing an abbreviated listing of responsibilities and duties of the Secretary-Treasurer’s Department: • Custody of all matters relating to investment of funds of the Society including management and required record keeping. Investment management is listed first because of its importance in providing funds to support the fraternal programs and activities that define who we are as a Society and to fund the life insurance and annuity benefits for our members.

Year 2008 2009 2010 2011

Total Admitted Assets $185,108,063 196,978,272 211,879,313 217,751,169

Investments Taking over management of the assets on August 1, 2008, the first task was beginning the process of evaluating the Society’s portfolio of stocks and securities. Numerous securities were found to be in process of default, and unrealized losses were identified that would have to be dealt with. The surplus shown on the books at the beginning of 2008 was $24.2 million. By the time of the 2008 Convention, the economic crisis was beginning to take its toll well before I assumed office in August 2008. By year end 2008, losses would take the surplus down from $24.2 million to $13.02 million as defaulting securities were written off and impaired securities were written down to market value incompliance with insurance accounting regulations. Even at that, there were ailing and non-performing securities left on the books to be dealt with later. Other

• Recording Supreme Lodge minutes and informing membership of important conclusions. The publication of minutes in the Vestnik is important because it is the member’s window into the meetings of the Supreme Lodge. Also recording of Investment Committee and officers’ meeting minutes and notes. • Providing member services, administration of annuities, individual retirement accounts (IRA), certificate loans, and general certificate information requests. • Managing mortgage loan department and providing mortgage loans for benefit of our members and lodges.

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matters needing resolution were fees paid to the consultant, the custodian, and the way our Society bought and sold securities. I am grateful to your Supreme Lodge in their wisdom and willingness to allow many changes in the way we handled our investments. There was immediate need for software and services to provide necessary investment information to manage our portfolio. Consequently, numerous consultants and advisors were evaluated and Buddie Ballard, C.F.A. of Alpha Capital Management in Austin, Texas, was selected. Alpha came on board on October 1, 2008. With their assistance, we were able to enter into a totally transparent method of buying and selling securities and superior custodial services. Our cost for stock trades is less than $10 and for bond trades, the cost is $25. The success that we have enjoyed in turning around our finances would not have been possible without the wisdom and confidence of the Supreme Lodge in approving the major changes that made it possible. Their willingness to step out of the box and accept new methods and technology has placed us in a very advantageous position. With the future in mind, and with the assistance of Mr. Ballard, we adopted a comprehensive Investment Policy Statement (IPS) which is a living document and is reviewed in every Supreme Lodge meeting. The IPS provides that SPJST maintains full discretion on sales and purchases of securities. That is, all purchases and sales of securities require SPJST approval.

vided by insurance accounting regulations. We sometimes loosely refer to the Interest Maintenance Reserve (IMR) as our “cookie jar� where we are limited in how much of the stored profit we can take out each year. Combining profits and losses for the period from year 2000 through year 2008 show a significant average annual loss over this period. A turnaround was needed, and we have achieved this turnaround with two profitable years and recovering over a million dollars per year in surplus. During 2009, profits were generated and used to liquidate impaired or nonperforming assets and unrealized losses. Also during 2009, we began the process of diversifying our securities among sectors, and laddering our maturities to provide cash flow and liquidity. Diversification and adequate cash flow are absolute necessities for an insurance Society. At December 31, 2008, the market value of our securities was over $21 million less than the book value. That measurement is now reversed in that at the end of the first quarter, the market value posted in our custodian account is some $4.6 million greater than the book value. Simply observing history, we know that sometime in the future, we will again experience an economic downturn or some economic crisis. We have diligently labored to prepare for this by diversifying our portfolio, laddering our maturities to provide cash flow and improving the quality of our securities. We are financially strong and ready for what the future may bring.

Amazing Recovery and Turnaround The following chart illustrates an amazing turnaround:

Taking Care of Members— Our First Priority Two serious irregularities were discovered the latter part of 2009, and the Supreme Lodge response demonstrates our commitment to our members. The first was my chance discovery of a Universal Life certificate in violation of Internal Revenue Service (IRS) guidelines due to excessive premium deposits. This led to the second discovery of the fact that our Admin system had allowed excessive deposits to flow through without warning on 188 certificates. Some of the violations dated back more than 20 years to 1988. SPJST sought the assistance of a tax specialist to help us to take remedial

Year Net Gain/(Loss) 2008 -($9,061,065) 2009 - (1,244,738) 2010 1,427,704 2011 1,228,253

Surplus $13,022,948 13,807,528 16,185,721 16,379,403

In addition to the gains shown above, profits on bond trades have increased our interest maintenance reserve by over $2.5 million, and these profits will be taken into income spread over a period of years, as pro-

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action to deal with this violation. The certificates were replaced, and a settlement was negotiated with the IRS for $1,087,106. Considering the possibilities if this would had not been dealt with, it is our opinion that this was a very favorable settlement to put this matter behind us. Although unfortunate, the incident does demonstrate a strong commitment to our members. If we had not encountered this extraordinary expense, our net income for 2011 would have been more than $2.3 million.

31, 2012, quarterly report will show surplus of near $18 million. A realistic goal is to increase surplus back to $24 million by the 2016 convention. The past three and one-half years have seen a lot of “mopping up” problems with our Admin system. A serious goal will be training staff to use new technology to help us manage operating costs and at the same time provide better service to our members. It is our goal that we will make the necessary changes to allow our members and sales personnel access to information they need online. It is our goal to see our A.M. Best rating upgraded. We see a trend for continued improvement in our financial strength and are confident we are moving towards an upgrade in our financial rating.

Death Claims Paid One of the primary reasons our members buy life insurance is to provide funds for their family in the event of their death. During the past four years, the following amounts were paid: Year 2008 2009 2010 2011

Number of Certificates 475 657 580 600

Amount Paid $2,590,480 4,222,233 3,571,217 3,447,017

In Summary In short, it is the duty of the SecretaryTreasurer to manage the funds of the Society to produce income to support our benefit obligations to our members as well as the many fraternal programs the Society provides. Additionally, it is the duty of this position to provide the best possible service to our members and to oversee all administrative duties in a professional manner. I feel that I have done that and ask for your vote of confidence to return me to this position for another four-year term. The fraternal mission of the Society is an inseparable part of every decision I make and every action I take. During my many years of service in the Secretary-Treasurer’s Department, I have encountered and found solutions to almost every imaginable problem. I have experienced and managed the Society’s monies through all kinds of economic cycles. I have embraced and know how to adapt to and use new technology. My bachelor of science degree is augmented by a heart for our fraternal mission.

What a Difference a Name Makes My report consistently refers to SPJST as a “Society”—and not a “company.” Why is SPJST the “light on the hill” in the American Fraternal Alliance? It is because we have not forgotten the reason for our existence as a fraternal benefit society. It is because we on the Supreme Lodge know that we are here to serve you and not some abstract image of a “company.” Yes, we must make prudent business decisions, and we must make a profit but our purpose must be rooted in a higher mission and a vision to serve you better. Our everyday mission must be to remain financially strong for the sole purpose of fulfilling our contractual benefits to you and funding strong fraternal programs that define who we really are. We remain confident that the decisions and governance of the delegates will continue to provide the direction you desire for our “Society.”

Expression of Appreciation Appreciation and acknowledgement is expressed to the members of my department, in alphabetical order: Margaret Campbell, Janie Coakley, Rudy Constancio, Tamara

Challenges and Goals We experienced very strong performance in the first quarter and expect that our March

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Gettys, Linda Hill, Ann Paruzinski, Marissa Salinas, Margaret Santana, Dorothy Tomasek and Carol Wolf. I appreciate the manner in which you serve our members and how you have grown professionally. I graciously thank the officers, directors, Editor/Director of Communication, and all of you who bless us with your labor of love for our Society and one another. Dorothy and I thank you for your friendship and hospitality during our many years of service. Most of all, I thank God and give him the glory for His Blessings and all that He has done in leading us to victoriously meet the challenges we have faced the past four years. Again, I humbly ask for your support in reelecting me to the position of SecretaryTreasurer. Fraternally yours, Leonard Mikeska, FIC Supreme Lodge Secretary-Treasurer —SPJST—

I want to thank the Supreme Lodge for appointing me to the position of Financial Secretary. It is an honor to be the first appointed person to this position that was not previously elected to this position. As the grandson of charter members, SPJST has been important to my family since its formation. Historically, the Financial Secretary is responsible for all accounting functions of our Society. The Society suffered under the economic downturns of 2008 and 2009. In 2008, the Society suffered a Net Loss from Operations of $1,930,754 and had a capital loss of $7,143,045. This resulted in a decrease in surplus of $11,238,089 and a drop in our rating by the A.M. Best Company from B+ (Good) to B (Fair). This rating reduction was a result of our Society’s Net Loss from Operations, our high level of risk in the investment portfolio and the high level of capital losses. The Society continued to suffer a Net Loss from Operations in 2009 of $491,559 and a capital loss of $753,179. Despite these losses, the Society was able to increase the surplus by $784,580. This is accomplished by a decrease in the risk in our portfolio. Higher risk assets require higher reserves. As the risk of the portfolio declines, surplus can increase even if the Society suffers operating losses. Our A.M. Best rating dropped further to B-(Watch).

FINANCIAL SECRETARY’S PRE-CONVENTION REPORT

This report is submitted in accordance with Article 3 (b) and Article 32 (g) of our 2008 SPJST By-Laws.

Certificates In Force For The Past 10 Years

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The Society started to recover from these losses in 2010. The Society had a Net Gain from Operations of $416,903 and a capital gain of $1,010,800. Surplus rose by $2,378,193. Our A.M. Best rating improved to B (Stable). These gains continued in 2011 despite an extraordinary event. The Net Gain from Operations was $1,070,013 and the capital gain was $221,740. Surplus rose by $193,682. It was discovered in 2010 that guideline premium violations had occurred in the Universal Life product. SPJST was faced with a difficult decision. Does the Society issue 1099s to policyholders for over 20 years of interest income thus forcing the policyholder to file amended tax returns and be subject to underreporting tax penalties? The Society chose the other option which was to negotiate a payment to the Internal Revenue Service (IRS) thus sparing the policyholder unnecessary stress. This payment was slightly over $1.1 million and was a direct reduction of the Net Gain from Operations. Stock values declined at year-end, and the Society recognized an unrealized loss of $2,645,461. This is a direct reduction of surplus. The stock market has rebounded in 2012 and much of this loss will result in larger gains in 2012. Without these two occurrences, the Society would have had its best year financially in over 15 years. During the first quarter of 2012, the Society’s Net Revenues have far exceeded

budgeted amounts and should result in improvements in Net Gains from Operations, capital gains, and gains in surplus. We hope this will improve our A.M. Best rating to B+ (Good). The financial statement will show that our Society has decreased our common stock portfolio to approximately $10 million compared to approximately $18.8 million at the end of 2010. We will continue to monitor all aspects of the Society’s operations so that we may re-achieve our A- (Excellent) rating with A.M. Best. All official figures (accrual basis) are taken from the annual statement as submitted to the Texas Department of Insurance. Financial Statement I have submitted a financial statement of SPJST for a four-year period, which includes 2008, 2009, 2010, and 2011. This financial statement enables you to compare assets, liabilities, net income, expense, and surplus. I am pleased to report that assets have increased by approximately $25.7 million over the last four years. Total liabilities have also increased by $33.6 million over the last four years primarily due to the increase in the annuity portfolio. The difference is measured through surplus, and this amount decreased by approximately $7.9 million. We continue to maintain a sizeable amount in our Interest Maintenance Reserve (IMR) which amounts to approximately $4.8 million. This amount is set up as a lia-

Surplus For The Past 10 Years

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bility for future release to the financial statement provided that no losses occur to offset this amount. Earnings on our assets make it possible to support our fraternal programs (including the youth program), refund to lodges, incentive awards, interest on annuities, and interest on universal life certificates. Our spending on the fraternal pro-

grams in 2011 was over $1.8 million which is a direct reduction on our Net Income from Operations. We have maintained this course; therefore, we were able to support the incentive awards program that enables lodges to receive monetary amounts based on their production. We have also maintained a higher level of interest on our inter-

Net Gain (Loss) From Operations

Net Income (Loss) For The Past 10 Years

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est sensitive products. My financial statement and graphs follow.

has amounted to approximately $52,825. Data Processing We continue to upgrade our equipment to provide for the most efficient work flow and continue to maintain our software programs with United Systems and Software, Inc. in Lake Mary, Florida. We are currently working with United Systems and Software to insure the software is operating as expected and IBM to more fully utilize our existing equipment.

Refund to Local Lodges The Supreme Lodge Officers and Directors have continued to declare refunds to our local lodges for the past four years. This total refund for the past four years has amounted to more than $700,000. All active lodges were paid by taking the number of certificates at a rate of $8.50 per certificate on premium paying certificates and $1 per paid up certificates. All annuity certificates were excluded. It is very important that each local lodge increase its new insurance sales so that these programs and refunds may continue.

In Conclusion At this time, I would like to thank the dedicated employees of my department for a job well done. All of this detailed work would be impossible without an efficient office staff. My employees include Dorothy Stuchly, Debbie Dohnalik, Lisa Kirby, Lori Slack, Stephanie Bartose, and Susan Neal. Debbie, who is our Accounting Manager (35 years of service), has enabled our Society to maintain a high rating with her efficient work and dedication. Lisa, my Executive Assistant (20 years of service), has proven her capabilities and dedication to this position after taking over from Linda Johnson, who retired in December 2011 after 35 years of service. Dorothy (46 years of service), Lori (four years), Stephanie (two years), and Susan (four months) have also performed their duties very efficiently and have become valuable assets to my department. I am very pleased that they represent me and our Society at a high level. I must not forget the other team members of the Home Office. It has been a pleasure working with the other employees and with the Supreme Lodge Officers, Directors, and Editor/Director of Communication. I certainly appreciate the fine cooperation each has displayed towards me. I’d like to tell you that I find much pride in representing SPJST. My wife Becky, my children, and I try our best to represent you well. We are all SPJST members. Fraternally, Roy W. Vajdak Financial Secretary —SPJST—

Incentive Awards Program to Local Lodges This program was started approximately 16 years ago and has continued to be of a great interest to our local lodges. This has enabled local lodges to receive high refunds based on their production provided that guidelines were met. This program for the past four years has enabled us to refund approximately $187,000. Please make sure your local lodge has active sales agents so that refunds may continue. Department of Insurance and Independent Audit The last Texas Department of Insurance audit was completed for years 2004 through 2008. I am pleased to report that no discrepancies of any magnitude were found, and no changes were made to my financial statement as submitted. Our independent audit is being conducted by Jaynes, Reitmeier, Boyd & Therrell, P.C. for the year 2011. This audit began in January with preliminary work and should be finished by June 15, 2012. The Supreme Lodge reviewed all independent audits for years 2008, 2009, and 2010, and no discrepancies were noted or items changed. As required by state insurance regulations, we are required to file these independent audits with the Texas Department of Insurance in Austin, Texas. Cost of these audits for the past four years

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Ranking of Lodges According to Number of Premium-Paying Certificates in Force as of 12-31-2011

Ranking of Lodges According to Amount of Insurance in Force as of 12-31-2011 Ranking 1. 2. 3. 4.

Lodge No.

Amount of Ins.

5,869

$55,859.431.00

1,138

37,840,621.00

1.

88, Houston

35,855,506.00

2.

47, Seaton

30,075,604.00

811

79, Corpus Christi

24,797,585.00

810

35,805,889.00

738

27,173,710

737

160, San Angelo 47, Seaton 107, Floresville

5.

29, Taylor

6.

219, El Paso

7.

Certificates

88, Houston

79, Corpus Christi

2,033

Ranking

Amount of

No of Certs.

$41,656,962.00

1,601

Lodge No.

1,099

28,751,851.00

3.

1,774

28,527,691.00

4.

160, San Angelo

484

28,210,265.00

5.

107, Floresville

26,885,820.00

6.

40, El Campo-Hillje 23,607,466.00

685

1,259

25,277,267.00

7.

29, Taylor

677

663

23,871.305.00

8.

66, Waco

1,390

25,191,862.00

8.

40, El Campo-Hillje

9.

49, Rowena

10.

66, Waco

1,428

21,507,799.00

9.

11.

30, Taiton

814

21,386,719.00

10.

219, El Paso

28,181,850.00

481

49, Rowena

22,522,056.00

442

80, Holland

6, Cottonwood

19,183,487.00

624

18,709,882.00

514

20,571,401.00

11.

13.

17, New Tabor

979

19,111,010.00

12.

14,985,946.00

433

14.

80, Holland

843

17,026,704.00

13.

333, Group

2,160,000.00

428

567

16,754,701.00

14.

30, Taiton

19,826,870

419

15.

24, Cyclone

14,189,328

368

12.

15.

6, Cottonwood

133, San Antonio

1,078

Top 15 lodges account for 43% of total insurance in force.

Top 15 lodges account for 44% of total premium paying insurance in force.

Ranking of Lodges According to Number of Certificates in Force as of 12-31-2011 Ranking

Lodge No.

SPJST Financial Statement A Four-Year Comparison

Amount of

No of Certs.

$55,859,431.00

5,869

Assets

35,855,506.00

2,033

2008 2009 2010 2011 Bonds 120,168,519 141,874,270 151,094,079 168,465,514 Stocks 19,981,091 18,302,111 24,019,646 15,209,066 Mortgage Loans 27,103,903 28,650,614 28,427,111 25,456,011 Real Estate: Properties occupied by the Society 2,766,322 2,676,666 2,554,313 2,479,353 Properties held for the production of income 64,754 64,754 Certificate Loans 2,218,424 2,232,085 2,271,094 1,908,760 Cash 11,105,147 1,268,704 832,888 1,042,537

1.

88, Houston

2.

47, Seaton

3.

29, Taylor

28,527,691.00

1,774

4.

66, Waco

21,507,799.00

1,428

5.

79, Corpus Christi

26,885,820.00

1,390

6.

40, El Campo-Hillje 25,277,267.00

1,259

7.

84, Dallas

14,972,613.00

1,250 1,138

8.

160, San Angelo

37,840,621.00

9.

107, Floresville

28,751,851.00

1,099

20,571,401.00

1,078

10.

6, Cottonwood

Statements of Financial Condition

11.

25, Ennis

9,463,970.00

1,029

Other Assets

12.

92, Fort Worth

8,355,424.00

1,013

Totals

13.

24, Cyclone

16,741,701.00

986

14.

17, New Tabor

19,111,010.00

979

12,166,471.00

913

15.

172, Pasadena

Top 15 lodges account for 45% of total certificates in force.

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1,764,657

1,973,822

2,615,428

3,125,174

185,108,063 196,978,272 211,879,313 217,751,169


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Liabilities and Reserves 2008 2009 2010 2011 Certificate Reserves 164,893,120 171,292,790 182,225,973 189,557,036 Certificate Benefits Payable 559,358 460,791 984,848 847,935 Premiums Received in Advance 384,431 379,226 357,399 89,269 Interest Maintenance Reserve 2,283,132 4,549,621 4,721,419 4,854,418 Asset Valuation Reserve 749,726 3,380,733 4,276,936 2,809,143 Other Accrued Liabilities 3,215,348 3,107,579 3,127,017 3,213,965 Totals

172,085,115 183,170,740 195,693,592 201,371,766

Unassigned Funds 13,022,948 13,807,532 16,185,721 16,379,403 Totals 185,108,063 196,978,272 211,879,313 217,751,169

Statement of Operations Income 2008 Insurance and Annuity Premiums 12,281,553 Net Investment Income 7,889,909 Amortization of Interest Maint. Reserve 438,483 Commissions and Expense Allowance 30,339 Net Realized Capital Gains or (Losses) (7,143,045) Miscellaneous Income Totals

13,497,239

2009

2010

2011

16,272,933

20,627,087 20,808,298

8,600,186

9,758,692 10,221,924

575,502

776,237

872,921

17,129

5,925

3,620

(753,179) -

1,010,800 -

221,740 3,431

24,712,571

32,178,741 32,131,934

Distribution of Income 2008 Life and Annuity Benefits 10,868,503 Refunds to Members 5,664 Additions to Reserves 5,051,814 Operating Expenses 6,632,323

2009 13,912,183 (604) 6,399,670 5,646,060

Totals

22,558,304

25,957,309

Net Income

(9,061,065)

(1,244,738)

2010

2011

14,261,530 17,092,195 161 (206) 10,933,183 5,556,165

7,331,060 6,480,132

30,751,039 30,903,181 1,427,702

1,228,753

Statement of Changes in Certificate Holders’ Surplus 2008 Balance Beginning 24,261,037 Net Income (9,061,065) Changes in Unrealized Capital Gains (+) or Losses (-) (2,177,024) Balance-Ending

13,022,948

2009

2010

2011

13,022,948 (1,244,738)

13,807,528 16.185,719 1,427,702 1,228,753

2,029,318

950,489 (1,035,069)

13,807,528

16,185,719 16,379,403

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preferred stock, common stock, mortgage loans, and certificate loans. This examine was conducted on January 15, 2008. The following is our financial report.

REPORT OF DIRECTORS We, the undersigned directors, examined all income and expense in the books of the Supreme Lodge. We also examined all bonds,

SPJST Supreme Lodge Balance Sheet as of December 31, 2011

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FINANCE COMMITTEE’S RECOMMENDATIONS (PRE-CONVENTION REPORT)

Mileage, 55 1/2 cents per mile, or the IRS adjusted rate, at time of travel for one round trip. Mileage will be paid only to the delegate furnishing the transportation. Delegates using commercial mode of transportation will be reimbursed for their expenses not to exceed 55 1/2 cents per mile, or the IRS adjusted rate, at time of travel. District Directors of each district will encourage delegates to minimize expenses for the district by utilizing carpooling or bus transportation for a group. The District Director will review and approve the delegate’s claim voucher for the district prior to submission for payment by the Supreme Lodge. No individual may qualify for more than one per day “the higher per day” remuneration. Officers and all past Officers, Directors, Editor/Director of Communication of SPJST, and Officers and Directors of the Czech Heritage Museum and the Education and Nature Center, who are not delegates or paid a per day convention rate be reimbursed meals, mileage, and lodging and two tickets to all convention activities, effective immediately.

Recommendations of the Finance Committee for the 2012 Convention Killeen, Texas

The elected representatives from each district had a voice in the remunerations and recommendations. Recommendations were discussed and voted on by the committee members, and the majority vote was accepted. Our meetings were opened to anyone interested in SPJST. Recommendations made by lodges and individuals were taken into consideration. After deliberating and consulting with the Supreme Lodge Officers and Directors and Editor/Director of Communication on the financial status of the society, our committee is pleased to present the following recommendations and remunerations to the delegates of the 31st SPJST Convention. Remunerations and Recommendations Delegates Directors Convention Chairman Convention Vice Chairman Convention Secretaries per day includes extra hours Parliamentarian By-Law Committee Finance Committee Publication Committee Insurance Committee Members on All Other Committees Time Keeper Sergeant-at-Arms

$220 per day $230 per day $305 per day

Standing Committees After the 2012 convention, all standing committees shall be paid $200 per day. Additional $40 per day for chairman and secretary of standing committees or vice chairman when acting in place of the chairperson. Committee members shall be paid for official meetings ONLY. The Standing Committees that meet on the day before the convention convenes be paid, per day, lodging for one night, and meals, as outlined by the previous convention, at the existing standing committee rate.

$275 per day $345 per day $230 per day $230 per day $230 per day $230 per day $230 per day $230 per day $230 per day $230 per day

Other Committees The Credentials Committee will be paid for working the day before the convention convenes, as outlined by the previous convention, at the existing standing committee rate.

**Assistant Secretaries (secretary-intraining) be paid $50 per day. This is in addition to any other remuneration received.

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Officers’ Salaries January 1, 2013 to December 31, 2013

Directors January 1, 2013 to December 31, 2013

$121,216

Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. Members of the Supreme Lodge are to assume duties August 1 in the year of their election. Any incumbent officers being replaced shall be relieved of his/her duties July 31 and be paid for the remainder of his/her term.

$29,029

Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. Any incumbent District Director being replaced shall be relieved of his/her duties July 31 and be paid for the remainder of his/her term. In addition to the annual salary, Directors will be paid $200 per day for attending Supreme Lodge meetings, and be paid $100 per evaluation, including final evaluations on real estate, plus mileage at 55 1/2 cents per mile, or IRS rate at time of travel, lodging, and cost of meals, not to exceed $25 per day. The salary includes delivery of scholarships and insurance policies, attending lodge meetings within the district, District Youth Achievement Day, etc., workshops, and all other duties performed for the Society.

Longevity Pay Officers will be paid annually $200 for each year of completed employment with SPJST after the 20th year of employment, and adjusted for each year of service added. A newly elected officer in the Supreme Lodge will be paid 75 percent of the scheduled salary for six months. After six months, the performance will be reviewed and the salary adjusted as deemed appropriate by the Supreme Lodge. The Supreme Lodge will review and make adjustments to the salary as necessary, but not to exceed the salaries authorized by the 2012 convention delegates. Editor/Director of Communication January 1, 2013 to December 31, 2013 $99,673

District Youth Counselors $200 per day, and all assistants, as outlined by the By-Laws, be paid $120 per day, mileage 55 1/2 cents per mile, or IRS rate at time of travel, lodging, and actual cost of meals not to exceed $25 per day while on duty. Any other reimbursements will be recommended to and approved by the Supreme Lodge.

Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. Any incumbent Editor/Director of Communications being replaced shall be relieved of his/her duties July 31 and shall be paid for the remainder of his/her term. Any replacement of newly elected Editor/Director of Communication will be paid 75 percent of the scheduled salary for six months. After six months, the performance will be reviewed and the salary adjusted as deemed appropriate by the Supreme Lodge. The Supreme Lodge will review and make adjustments to the salary as necessary, but not to exceed the salary authorized by the year 2012 convention delegates.

Youth Department Authorize the Supreme Lodge to provide quarterly reimbursements of $2 per youth to the local lodge youth clubs. Annual allocations of $142 for each camper attending camp for 2012. These funds are to be used exclusively for the youth. The Finance Committee will review the allocation for 2013, 2014, and 2015 at the annual meeting. All funds are to be accounted for and audited by the District Audit Committee and a report given at the District Spring Meeting. The audit (income and expense) must be filed with the Supreme Lodge President within 30 days after the audit. The District Youth Counselor and District Audit Committee

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must see that the report is filed. Any unused revenue is to be placed in the District Youth Fund. Authorize the Supreme Lodge to contribute to the district $1.10 per year for every insured member who has attained the age of 16 years. This amount must be for the benefit of the youth.

Scholarship Fund Authorize the Supreme Lodge to contribute $40,000 per year to the Scholarship Fund, $7,000 of the $40,000 per year to go into the SPJST Scholarship Endowment Fund. Other Recommendations (1) Officers, Directors, Editor/Director of Communication, members on the Standing Committees, and other authorized personnel using a personal car for the use of the Society work, and are authorized to travel for the society, be paid 55 1/2 cents per mile, or the IRS adjusted rate at time of travel.

District Fraternal Activities Coordinators $100 per day and 55 1/2 cents per mile, or IRS adjusted rate at time of travel, lodging, and actual cost of meals not to exceed $25 per day while on duty. Any other reimbursements will be recommended by the President of the Society and approved by the Supreme Lodge. Example: District teams to state tournaments.

(2) Officers and Directors should not be paid a bonus until the Earned Surplus reaches the $24 million level. (3) $3,000 annual allocation for the upkeep of the SPJST cemeteries, and give the authority to disburse and administer these funds to the Supreme Lodge.

Education Czech Language Education Fund: $2,500 annual allocation to institutions teaching the Czech language, with or without credit.

(4) Authorize the Supreme Lodge to reimburse hosting entities for pre-convention activities and refreshments during the convention. Arrangements will be coordinated with the Supreme Lodge.

Education and Nature Center The Finance Committee recommends a contribution sufficient to cover delinquent interest through 2012. The Finance Committee will review annually and make recommendations for 2013, 2014, and 2015.

(5) $1,500 annual allocations to the Czech Heritage Society of Texas (for the purpose of printing and mailing the Cesky Hlas newsletter to members of the society).

Czech Heritage Museum The Finance Committee recommends a contribution sufficient to cover delinquent interest through 2012. In addition, a $50,000 contribution for the year 2012, thereafter to be reviewed annually by the Finance Committee.

(6) $1,500 annual allocations to the American Sokol Organization, Southern District. This money cannot be used for legal services or litigation. (7) A one-time contribution to the Texas Czech Genealogical Society (TCGS) in the amount of $10,000 for their assistance with the Vestnik archiving project.

Rest Homes $2,500 per year, per rest home. The funds are to be placed in the Rest Home Charity fund. Those funds are to be for the rest home residents. $1,500 annual allocation to the S.P.J.S.T. Assisted Living Home. These funds must be used for residents of the Assisted Living Home.

(8) Delegates and all other parties under remunerations and recommendations get paid for the actual days of the convention, not to exceed three days. (9) Per diems as authorized elsewhere in this recommendation should only be paid

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one-half of the per diem if away from their home base for less than four hours.

**Assistant Secretaries (secretary-intraining) be paid $50 per day. This is in addition to any other remuneration received.

Respectfully Submitted: Finance Committee Members 2012 SPJST Convention Killeen, Texas

Mileage, 55 1/2 cents per mile, or the IRS adjusted rate, at time of travel for one round trip. Mileage will be paid only to the delegate furnishing the transportation. Delegates using commercial mode of transportation will be reimbursed for their expenses not to exceed 55 1/2 cents per mile, or the IRS adjusted rate, at time of travel. District Directors of each district will encourage delegates to minimize expenses for the district by utilizing carpooling or bus transportation for a group. The District Director will review and approve the delegate’s claim voucher for the district prior to submission for payment by the Supreme Lodge. No individual may qualify for more than one per day “the higher per day” remuneration. Officers and all past Officers, Directors, Editor/Director of Communication of SPJST, and Officers and Directors of the Czech Heritage Museum and the Education and Nature Center, who are not delegates or paid a per day convention rate be reimbursed meals, mileage, and lodging and two tickets to all convention activities. Effective immediately.

Herman D. Weise, Chairman (District Four) Michael Galler, Vice Chairman (District Three) Marceil Malak, Secretary (District Five) Thomas Cannon (District One) Edwin Pechal (District Two) Glenn Kaminsky (District Six) Roy Haag (District Seven) —SPJST— RECOMMENDATIONS OF THE FINANCE COMMITTEE AS ADOPTED FOR THE 2012 CONVENTION, KILLEEN, TEXAS Recommendations of the Finance Committee for the 2012 Convention Killeen, Texas

The following is a summary of remunerations which were approved by delegates to the 31st SPJST Convention. Remunerations and Recommendations Delegates Directors Convention Chairman Convention Vice Chairman Convention Secretaries Includes Extra Hours Parliamentarian By-Law Committee Finance Committee Publication Committee Insurance Committee Members on All Other Committees Time Keeper Sergeant-at-Arms

Standing Committees After the 2012 convention, all standing committees shall be paid $200 per day. Additional $40 per day for chairman and secretary of standing committees or vice chairman when acting in place of the chairperson. Committee members shall be paid for official meetings ONLY. The Standing Committees that meet on the day before the convention convenes be paid, per day, lodging for one night, and meals, as outlined by the previous convention, at the existing standing committee rate.

$220 per day $230 per day $305 per day $275 per day $345 per day $230 per day $230 per day $230 per day $230 per day $230 per day

Other Committees The Credentials Committee will be paid for working the day before the convention convenes, as outlined by the previous con-

$230 per day $230 per day $230 per day

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vention, at the existing standing committee rate. Officers’ Salaries January 1, 2013 to December 31, 2013

Lodge. The Supreme Lodge will review and make adjustments to the salary as necessary, but not to exceed the salary authorized by the year 2012 convention delegates.

$121,216

Directors January 1, 2013 to December 31, 2013

Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. (No more than a 6 percent increase annually.) Members of the Supreme Lodge are to assume duties August 1 in the year of their election. Any incumbent officers being replaced shall be relieved of his/her duties July 31 and be paid for the remainder of his/her term.

$29,029

Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. Any incumbent District Director being replaced shall be relieved of his/her duties July 31 and be paid for the remainder of his/her term. In addition to the annual salary, Directors will be paid $200 per day for attending Supreme Lodge meetings, and be paid $100 per evaluation, including final evaluations on real estate, plus mileage at 55 1/2 cents per mile, or IRS rate at time of travel, lodging, and cost of meals, not to exceed $25 per day. The salary includes delivery of scholarships and insurance policies, attending lodge meetings within the district, District Youth Achievement Day, etc., workshops, and all other duties performed for the Society.

Longevity Pay Officers will be paid annually $200 for each year of completed employment with SPJST after the 20th year of employment, and adjusted for each year of service added. A newly elected officer in the Supreme Lodge will be paid 75 percent of the scheduled salary for six months. After six months, the performance will be reviewed and the salary adjusted as deemed appropriate by the Supreme Lodge. The Supreme Lodge will review and make adjustments to the salary as necessary, but not to exceed the salaries authorized by the 2012 convention delegates.

District Youth Counselors $240 per day, and all assistants, as outlined by the By-Laws, be paid $180 per day, mileage 55 1/2 cents per mile, or IRS rate at time of travel, lodging, and actual cost of meals not to exceed $25 per day while on duty. Any other reimbursements will be recommended to and approved by the Supreme Lodge.

Editor/Director of Communication January 1, 2013 to December 31, 2013 $99,673 Compensation for 2014, 2015, and 2016 to be reviewed annually by the Finance Committee. No more than a 6 percent increase annually. Any incumbent Editor/Director of Communications being replaced shall be relieved of his/her duties July 31 and shall be paid for the remainder of his/her term. Any replacement of newly elected Editor/Director of Communication will be paid 75 percent of the scheduled salary for six months. After six months, the performance will be reviewed and the salary adjusted as deemed appropriate by the Supreme

Youth Department Authorize the Supreme Lodge to provide quarterly reimbursements of $2 per youth to the local lodge youth clubs. Annual allocations of $142 for each camper attending camp for 2012. These funds are to be used exclusively for the youth. The Finance Committee will review the allocation for 2013, 2014, and 2015 at the annual meeting. All funds are to be accounted for and audited by the District

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Audit Committee and a report given at the District Spring Meeting. The audit (income and expense) must be filed with the Supreme Lodge President within 30 days after the audit. The District Youth Counselor and District Audit Committee must see that the report is filed. Any unused revenue is to be placed in the District Youth Fund. Authorize the Supreme Lodge to contribute to the district $1.10 per year for every insured member who has attained the age of 16 years. This amount must be for the benefit of the youth.

These funds must be used for residents of the Assisted Living Home. Scholarship Fund Authorize the Supreme Lodge to contribute $40,000 per year to the Scholarship Fund, $7,000 of the $40,000 per year to go into the SPJST Scholarship Endowment Fund. Other Recommendations (1) Officers, Directors, Editor/Director of Communication, members on the Standing Committees, and other authorized personnel using a personal car for the use of the Society work, and are authorized to travel for the society, be paid 55 1/2 cents per mile, or the IRS adjusted rate at time of travel.

District Fraternal Activities Coordinators $100 per day and 55 1/2 cents per mile, or IRS adjusted rate at time of travel, lodging, and actual cost of meals not to exceed $25 per day while on duty. Any other reimbursements will be recommended by the President of the Society and approved by the Supreme Lodge. Example: District teams to state tournaments.

(2) Officers and Directors should not be paid a bonus until the Earned Surplus reaches the $24 million level. (3) $4,500 annual allocation for the upkeep of the SPJST cemeteries, a maximum of $500 per cemetery, and give the authority to disburse and administer these funds to the Supreme Lodge.

Education Czech Language Education Fund: $2,500 annual allocation to institutions teaching the Czech language, with or without credit.

(4) Authorize the Supreme Lodge to reimburse hosting entities for pre-convention activities and refreshments during the convention. Arrangements will be coordinated with the Supreme Lodge.

Education and Nature Center The Finance Committee recommends a contribution sufficient to cover delinquent interest through 2012. The Finance Committee will review annually and make recommendations for 2013, 2014, and 2015.

(5) $1,500 annual allocation to the Czech Heritage Society of Texas (for the purpose of printing and mailing the Cesky Hlas newsletter to members of the society).

Czech Heritage Museum The Finance Committee recommends a contribution sufficient to cover delinquent interest through 2012. In addition, a $50,000 contribution for the year 2012, thereafter to be reviewed annually by the Finance Committee.

(6) $1,500 annual allocation to the American Sokol Organization, Southern District. (7) A one-time contribution to the Texas Czech Genealogical Society (TCGS) in the amount of $10,000 for their assistance with the Vestnik archiving project.

Rest Homes $2,500 per year, per rest home. The funds are to be placed in the Rest Home Charity fund. Those funds are to be for the rest home residents. $1,500 annual allocation to the S.P.J.S.T. Assisted Living Home.

(8) Delegates and all other parties under remunerations and recommendations get paid for the actual days of the convention.

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(9)Per diems as authorized elsewhere in this recommendation should only be paid onehalf of the per diem if away from their home base for less than four hours.

INSURANCE COMMITTEE REPORT The Insurance Committee met on January 7, 2012, and extensively reviewed information, operation, and goals of the Insurance Department. The Insurance Committee found that the SPJST Insurance Department is managed well, functioning in an efficient manner, and setting and reaching its goals in insurance sales and retention of policies. The Insurance Committee acknowledges that our membership drives have fallen short of the goals set by the Insurance Department mostly due to the current economic status of our country. The Insurance Committee commends Supreme Lodge Vice President Gene McBride and the entire sales force for continuing to set high goals and diligently working to meet these goals for the last three years. The Insurance Committee supports new insurance products brought on board, including the Estate Builder plan and realizes the need to remain competitive in the insurance market. The Insurance Committee realizes the need for working on the underfunded Universal Life policies and understands that software issues were mainly responsible for not recognizing that these policies were not going to be funded properly when written. We are pleased to announce that software is now installed that catches these sorts of problems prior to issue. The Insurance Committee also realizes that the reason most of the ULs are underfunded is due to the member taking out policy loans and not paying them back, making cash value withdrawals, and missing premium payments over the life of the policy. The Insurance Committee recognizes the efforts of the Insurance Department in training new sales agents and keeping our present sales force educated. We realize this is a combined effort of the Supreme Lodge Vice President and the presence of state field representatives throughout the state. The Insurance Committee acknowledges the need for improved member service throughout our organization. We realize that there needs to be a method for tracking contacts to our present membership and that sales agents need to be offered some type of incentive for making these periodic contacts

Respectfully Submitted: Finance Committee Members 2012 SPJST Convention Killeen, Texas Herman D. Weise, Chairman (District Four) Michael Galler, Vice Chairman (District Three) Marceil Malak, Secretary (District Five) Thomas Cannon (District One) Edwin Pechal (District Two) Glenn Kaminsky (District Six) Roy Haag (District Seven) —SPJST—

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to our membership. We also realize that servicing our current membership is an excellent way to sell new insurance policies to family members of our current members. The following by-law change was proposed to the By-Law Committee:

PUBLICATION COMMITTEE”S PRE-CONVENTION REPORT This is a report of the Publication Committee for the past four years. The 30th SPJST Convention in Killeen in 2008 elected the following members to the Publication Committee: District One - Floyd Kostelka District Two - Tammy Whatley District Three - Bessie Petr District Four - Sharon Hohmann District Five - Lorenda Baldwin District Six - Helen Kelner District Seven - Jarolyn Popp

Article 37 (c) Delete second sentence to end of paragraph. Add: Must notify the local lodge officers of the appointment of a new sales agent for that lodge. Add: (d) Administers sales agents contracts and insures that duties and responsibilities in contract are fulfilled.

Following the 2008 Convention, the Committee elected the following officers: Chairman - Jarolyn Popp Vice Chairman - Bessie Petr Secretary - Helen Kelner

Reason: Most of Article 37 (c) deals with sales agents’ responsibilities, and Article 37 is detailing duties of Vice President. Duties of sales agents are outlined in agent contracts and should not be part of our by-laws.

The 2008 Convention elected Vestnik Editor/Director of Communication Melanie Zavodny. The Publication Committee met in 2009, 2010, 2011, and 2012 with the Editor and, on occasion, with Supreme Lodge members, to evaluate past performance and to make recommendations for improving organizational communications. Also, on a regular and as needed basis, the Vestnik Editor/Director of Communication consulted with the Publication Committee on matters pertaining to organizational communications.

Fraternally submitted, Insurance Committee Susan Skrabanek, Chairman District One Jerome Hlavaty, Vice Chairman District Six Helen Hegwood, Secretary District Five Dolores Skrabanek District Two Daniel Roznovsky District Three Leonard Jansa District Four Wendy Pruski District Seven —SPJST—

Editor’s Duties During the past four years, the duties of the Vestnik Editor/ Director of Communication consisted of editing the Vestnik and assisting the Supreme Lodge in a variety of capacities, including the promotion of fraternal and youth activities, life insurance programs, and the mortgage lending program. The Editor's duties also included the development of printed materials, including newsletters, flyers, brochures, and advertisements for Society marketing and promotions. The Communication Department carried out approximately 40 annual lodge and youth club mailouts each year. Other printed communication projects that the Editor

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completed included the annual calendar, Youth Spectacular, SPJST Excellence sales agent newsletters (through 2009), Member Services Directory, SPJST Convention Souvenir Book, and membership campaign promotional materials. As a matter of routine, the Editor represented the Society at various SPJST and member-related activities including heritage and cultural events — throughout the state. A 700-page cookbook—SPJST Tasty Traditions—featuring 1,400 recipes was compiled, designed, and edited in 2011 by the Vestnik/ Communication Department.

and the Communication Department were responsible for Orel, the SPJST mascot, and all of Orel’s appearances across the state. This included scheduling and coordinating the live, costumed mascot and the 20-foot inflatable mascot at various events. The Editor’s duties also included all aspects of the two SPJST Floats. Through the effective use of volunteers, the Editor has designed and developed numerous float themes during the past four years. The floats appear in more than 40 parades each year. The Editor scheduled the floats in parades working with lodges and youth clubs throughout the state. She also coordinated drivers to deliver the floats to parades and, again, working with volunteers, oversaw the floats’ repair and maintenance.

SPJST Website Additionally, the Vestnik Editor/Director of Communication was responsible for designing and creating the SPJST website at www.spjst.org. The site features downloadable forms; event information, online registration, and photos; SPJST historical data; and The SPJST Store for ordering SPJST merchandise. The website is updated several times per week. An online archives has been established that includes past tournament winners, district kings and queens, and top sales winners. Future plans include district adult pages (for fall/spring meetings information, etc.); district youth pages (for YAD, camp, activity, information); sales agent pages (including contact information); and lodge pages.

“The Voice of Our Members and SPJST” The Vestnik continues to be the voice of our members and SPJST. The delegates at the 2004 Convention approved printing the weekly Vestnik in full color. The page count has increased due to an increase in submissions from lodges and youth clubs and statewide activities. The average page count per week in 2012 is 31 pages. The average number of Vestnik subscriptions currently being mailed out are 10,008. The 2012 Vestnik cost is an average of 21 cents for printing each issue and 24 cents for mailing each issue. This amounts to about 45 cents per Vestnik—or the same cost as one postage stamp.

Social Media The Editor introduced SPJST to social media by establishing presences on Facebook, Twitter, and You Tube. Video projects that the Editor completed included the annual state youth video, State Youth Achievement Day videos, American Fraternal Alliance National Fraternalist of the Year videos in 2009 and 2010, and other SPJST promotional video projects.

100th Anniversary The Vestnik is observing its 100th year in 2012. To recognize this significant milestone and to preserve SPJST’s history, the Vestnik/ Communication Department partnered with Texas Czech Genealogical Society (TCGS) to scan all available past Vestniks from 1912 through 2004. SPJST is providing the scanners, and TCGS is providing the volunteers. TCGS members have worked hundreds of hours scanning the Vestniks and checking the scans for accuracy. Upon project completion, the archived Vestniks will be stored in a permanent, searchable online database.

Events, Orel, Floats In addition, the Editor coordinated the Orel Buck program and assisted with organizing and coordinating events such as the annual SPJST Awards Banquet, Bloomin’ Temple SPJST Car Show, and State Youth Achievement Day. The Editor

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$10,000 Donation to TCGS The Publication Committee is asking that delegates consider donating $10,000 to Texas Czech Genealogical Society (TCGS) as a token of appreciation for their countless hours of work towards the Vestnik archiving project (which is a savings of more than $500,000 to SPJST). We believe $10,000 is a very small token of appreciation for TCGS’ generous volunteer efforts in making this project a reality. We are confident that this project will connect generations and provide valuable historical research for SPJST and genealogical data for families. Your consideration of this contribution to Texas Czech Genealogical Society is greatly appreciated.

Lodge for the initiatives that have been implemented. We express thanks to our lodge and youth club correspondents for their input over the years and to all of our members who are helping to spread the good word about SPJST. Even with the considerable efforts that have been made in the communication area, we believe that many exciting communication and growth opportunities exist for SPJST. Best wishes for a successful convention. Fraternally submitted, Jarolyn Popp, Chairman District Seven Bessie Petr, Vice Chairman District Three Helen Kelner, Secretary District Six Floyd Kostelka District One Tammy Whatley District Two Sharon Hohmann District Four Lorenda Baldwin District Five —SPJST—

Appreciation and Thanks The Publication Committee expresses its sincere thanks and appreciation to Temple Daily Telegram, which has printed the Vestnik since 2005. The relationship between SPJST and the Temple Daily Telegram has always been very friendly. In her annual presentations to the Publication Committee, the Vestnik Editor/ Director of Communication has consistently given the management and personnel at Temple Daily Telegram high marks for their professionalism. The Vestnik and Communication Department currently includes two full-time individuals — Editor/ Director of Communication Zavodny and Communication Assistant Katherine Morris. Adult lodge and youth club correspondents and members provide a never-ending flow of lodge news, photos, feature ideas, and other communication projects. In 2010, Melanie was honored by the American Fraternal Alliance with the prestigious Marcia D. Heywood Memorial Fraternal Communications Award. The Editor currently serves on the American Fraternal Alliance Fraternal and Communications Section Advisory Council. The Publication Committee expresses its thanks and vote of confidence to Vestnik Editor/Director of Communication Melanie Zavodny for a job well done in leading the Vestnik and Communication Department to new levels. We also recognize the Supreme

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RESOLUTION COMMITTEE’S REPORT

Houston was sponsored by Bailey, Ramsey and Associates, Inc., Actuaries.

Whereas, the undersigned members of the Resolution Committee, for and on behalf of the entire delegation, convened in Killeen, Texas, on June 10, 2012, at the 31st SPJST Convention, wish to express its appreciation to those persons responsible for making the Convention a pleasant and productive gathering. Now, therefore, be it resolved that the delegation extends its sincere thanks to:

7. Supreme Lodge President Brian Vanicek (24) for officially convening the 31st SPJST Convention. 8. Thanks to Supreme Lodge Vice President Gene Mcbride (200) for the kolaches provided on Monday, June 11 and Melanie Zavodny (246) for the daily goodies placed on the tables for each delegate. Thanks to Supreme Lodge President Brian Vanicek (24) for the kolaches provided Tuesday, June 12 and Supreme Lodge Secretary-Treasurer Leonard Mikeska(200) for the kolaches provided Wednesday, June 13, 2012.

1.`The 31st Convention of the SPJST was called to order by Supreme Lodge President Brian Vanicek (24) at 8:30 a.m. SPJST District Four Director Billy Rollwitz (49) and Jerry Sijansky (79) posted the colors. Eleven-year-old Amya Rodriguez (24) sang the National Anthem and Brother Fred Buri (88) sang the Czech National Anthem, Kde Domov Muj? Bessie Petr (84) led the Pledge of Allegiance to the Flag. SPJST Secretary-Treasurer Leonard Mikeska (200) offered a convention prayer. Supreme Lodge Chairman Donnie Victorick (9) issued words of welcome to the delegation.

9. Donnie Victorick (9), Convention Chairman; Leonard Jansa (160), Vice Chairman; Convention Secretaries; Parliamentarian; and the Committee Members for their work, participation, and guidance during the deliberations. 10.We would like to recognize the youngest delegate, age 23, Kyle Skrabanek (17) and the oldest delegate, age 89, Leander Pflughaupt (88). The average age of the delegates is 64 years of age. Frank Klinkovsky (47) as an honorary District Director. The delegates who are multigenerational in addition to those attending with siblings. The delegates that have attended the previous conventions with Frank Klinkovsky (47) who attended the past 14 conventions. We would like to recognize Appa Hargiss (154), who at the age of five, represented SPJST on a Dr. Pepper can and who was now present as a delegate at this convention.

2. We recognize the Vestnik’s 100th anniversary and the SPJST’s 115th anniversary in 2012. 3. City of Killeen Mayor Dan Corbin welcomed everyone to the City and issued a proclamation naming June 11, 12 and 13, 2012 as “SPJST Days.” 4. Supreme Lodge officers and members who gave of their time in getting the Convention underway. 5. Thanks to Melanie Zavodny (246) for an excellent job on the Convention Program Book and many well wishers who purchased advertisements as well as those organizations that sent letters of commendation.

11.We would like to recognize the display of Czech Heritage Museum, Texas Czech Genealogical Society; SPJST Education and Nature Center at Cooper Farm; and The SPJST Store.

6. Howdy Party, Sunday evening, June 10, 2012, at the Killeen Civic and Convention Center (KCCC). The SPJST Lodge 88, Houston Czech Concert Orchestra of

12.“Let Us Do the Cooking” for providing lunches every day during the Convention; also for the formal banquet, Tuesday night, June 12.

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13.Supreme Lodge Secretary-Treasurer Leonard Mikeska (200) and Shilo Inn for the buffet breakfasts from 6 to 8 a.m.

Allegiance. 17.Sammy Hoggard (202) for reading the winning Flag Day Essay.

14.Special guests at the banquet were guest speaker Chancellor for Texas A&M University John Sharp (97). Kirk Gravely, Tom Pyle, and Darin Muse from Bailey, Ramsey and Associates; special entertainment by the Fritz Hodde Band sponsored by Bailey, Ramsey and Associates held on Tuesday night, June 12; RVOS Farm Mutual President Wiley Shockley and wife, Mary; KJZT State President Loretta Stahl; KJT President Chris Urban; Texas Czech Heritage and Cultural Center President Retta Chandler and husband, Charles; Czech Educational Foundation of Texas Chairman Clinton Machann and wife, Ginny; Honorary Consul General of the Czech Republic for the State of Texas Ray Snokhous and wife, Clarice; Jaynes, Reitmeier, Boyd and Therrell, PC - Jim Therrell and wife, Johna; Texans of Czech Ancestry President Arlene L. Cloyed and husband, Alan; Czech Heritage Society of Texas Chairman of the Board Jean Blaha Davis and husband, Waymond; 2011 State King Robert Lewis (9) and family; 2011 State Queen Alyssa Torres (48) and family; Czech Heritage Society of Texas President Phyllis Teykl and husband, Tom; SPJST Education and Nature Center President Donnie Howard and wife, April; Temple College President Dr. Glenda Barron; Bessie Petr (84) received her 60 years of recognition as youth leader/District Youth Counselor; past SPJST Legal Advisor Drew Popelka (47) and daughter; and Reverend Denise Mikeska, senior pastor of Seaton Brethren Church, for the invocation at banquet.

18.The Resolution Committee thanks the Home Office staff and everyone else for their professional service. 19. The delegates for moving the SPJST to a new level of professionalism and fraternalism. Fraternally submitted, Lynda Novak (84), Chairman Debbie Kprec (30) Sharon Kaderka (29) —SPJST— RECOMMENDATIONS OF THE CONVENTION ORDER COMMITTEE 31ST CONVENTION CONVENTION ORDER COMMITTEE (a) Morning sessions shall begin at 8:00 a.m. each morning and the convention will continue until 5:30 p.m. each afternoon, with 15 minute intermissions at about 10:00 a.m. and 3:30 p.m. (except Tuesday which will be at 3:00 p.m.) and a lunch break from 12 noon until 1:00 p.m. A caterer will serve food and tickets should have been purchased prior to the convention. Tickets should be in your registration packet. (b) No person shall speak to a motion or an issue more than once, and not more than three minutes, except that a proponent of a motion may have a three minute rebuttal. Extensions of time may be granted only with permission of a majority of the delegates present and such extension will not be for more than another three minutes. (c) The Chairman of the Convention shall have the right to dismiss the afternoon sessions early if he deems necessary due to evening activities. He shall have the right to extend the time of recess beyond 5:30 p.m. in the event that a need arises. He shall have the right to call an evening session of the convention if he determines it necessary for its completion. An appropriate dinner break will be provided for the delegates.

15.Hiram Dixon (87) addressed the Fort Hood November 5th, 2009 Memorial Project. 16.The Convention recognized all Veterans, who spoke of their military positions. Supreme Lodge Secretary-Treasurer Leonard Mikeska, who was one of the Veterans recognized, led us in prayer. The Delegate Veterans led us in the Pledge of

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by ballot. The election teller members will be furnished with ballot boxes that each delegate for each district will individually deposit ballots into. The election teller is responsible to see that each delegate deposits only one ballot in the ballot box. The delegates will be instructed to fold each only one time. The Chairman of the election tellers will assure that all procedures are completely carried out. Any election teller will immediately report problems to the Chairman of the election tellers. If a problem arises that cannot be resolved, the Convention chairman will be called on for assistance. No person other than the teller committee members may be present in the room or within hearing distance of the room where the tellers are working. Election tellers will sign the attached oath or affirmation and turn in to the Convention Chairman. Election tellers agree to treat as confidential how every delegate voted not to divulge, comment on or otherwise make known how any delegate voted and to not permit anyone who is not a delegate to be in the room where ballots are tabulated. In a contested election, if the difference each candidate received is less than 10 percent, the tellers will automatically do a recount of the ballots.

(d) No written material will be distributed to the delegates in the convention unless it is signed by the individual who distributed the material. (e) If delegates decide to leave the convention prior to its adjournment they will be deducted one full day’s allocation for attending the convention. (f) All other matters shall be governed by the By-Laws and Robert’s Rules of Order newly Revised. (g) Nominations for officers of the Supreme Lodge will be made by the following procedure: “I (name) Lodge (number) nominate (name of candidate) for the office (state name of office.)” No second is required. There will be no speeches. (h) If more than two individuals are nominated and no one receives a majority of votes, the two nominees receiving the largest number of votes will be the nominees for a runoff election. (i) Current Standing Committee members who are not delegates are requested to sit at the tables provided. (j) Visitors and leaders of other societies will be recognized at the Tuesday evening banquet but shall not speak. (k) Per the By-Laws Article 12(j), the next Convention will be held in or near a city selected by this convention. (l) A copy of every written report shall be given to the convention secretaries immediately after the report is made to the convention. (m) When the By-Laws are being considered, the action taken will be shown in the minutes using the words as shown on the cover sheet of the By-Laws Recommendation booklet. (n) Delegates are encouraged to speak and to make their views known to the deliberative assembly.

A. CONVENTION In votes by ballot, the delegates will use the official beige ballot furnished in the convention packet. When the delegates have concluded voting, the teller for each district will personally carry the voting box to each delegate and each individual ballot will be deposited by each delegate in the district in the voting box. After everyone has voted, the election tellers will go to their designated room and the following procedures will be followed: The ballot box for District One will be opened and there will be one election teller who will call the vote. Three election tellers will serve as observer of the caller and will closely observe the caller and the ballot that is

CONVENTION ORDER COMMITTEE PROCEDURE FOR VOTE BY BALLOT In all elections where there is more than one nominee for the office (whether in the convention or in the district caucus), the vote will be

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caucus to only this position. 7. At the District caucus, one person is only eligible to serve in one active position on a standing committee. A person is eligible to run and be elected to more than one active position but he must choose which position it will be and before the caucus adjourns, must announce which position he chooses and then another election will be held in the caucus before this is reported to the Convention Chairman for ratification. A person can serve in one active slot and can have as many alternate slots as he is elected to. If events are such that he can assume another active slot he must choose within thirty (30) days and notify the President of the Society and the District in writing. 8. The election teller that is serving for the district is responsible for taking the ballot box to each delegate and to see that each delegate deposits one ballot in the ballot box and that each ballot is folded only once. 9. The election tellers will retire to a separate room and will follow the following procedure to count the ballots: (a) One election teller will call the vote and one election teller will serve as observer of the caller and will closely observe the caller and the ballot being called. (b) One election teller will serve as tabulator and one election teller will closely observe the marks made by the tabulator. (c) When the votes are completed, the votes will be totaled by the tabulator and checked by the tabulator observer. (d) As each position is filled, the chairman of the tellers will report to vote signed by all election tellers to the district chairman in writing who will announce the results. (e) The same procedure will be followed until all positions are filled. (f) The results will be reported by the district election teller chairman to the Convention Chairman in the usual manner and signed by all election tellers and the caucus chairman and caucus secretary. (g) No person other than teller committee members may be present in the room or within hearing distance of the room where the tellers are working. (h) Election tellers agree to treat as confidential how every delegate votes and to not divulge, comment or otherwise make known

being called. There will be two election tellers to serve as tabulators who are seated at least ten feet apart who will each tabulate the vote. When the votes are completed for District One, the votes will be totaled and both tallies compared to be sure the tallies agree. The same procedures will be followed until all the votes for the other districts in numerical order have been tabulated and agree in a like matter. The overall vote will then be arrived at and returned in the usual manner to the Convention Chairman and signed by all election tellers. B. DISTRICT CAUCUS The District Director convenes the caucus. C. DISTRICT ELECTIONS 1. The election teller for the convention that was selected from the district will serve as chairman of the tellers for the caucus and brings the district voting box to the caucus. 2. In the event that more than one person is nominated for the district chairman and/or more than one person is nominated for the district secretary, then the general teller shall appoint four temporary tellers from the delegates in that district to tabulate the votes in the election of the caucus chairman and/or caucus secretary. 3. The elected permanent caucus chairman and the elected caucus secretary for the district (both of whom are elected in this convention district caucus) will each appoint two caucus tellers. (This makes a total of five election tellers for each district.) 4. If more tellers are needed, the caucus chairman can select up to six (6) more delegates to serve as tellers and the caucus secretary must select up to the same number of delegates as was selected by the caucus chairman to serve as tellers. 5. Each position and substitute specified in Article 45(g) will be elected preceding the next position. For example, the district director will be elected and so on until all of the positions are filled. For reference also see Article 12(i) and Article 4(a)(4) 6. The District Director can be elected at the

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how many delegates voted and to not permit anyone who is not a delegate to be in the room where ballots are being tabulated. 10.The minutes of the convention caucus shall be signed by the caucus chairman and caucus secretary and all election tellers and be given to the Convention Chairman (complete form attached.) The Convention Chairman will give this report to a convention secretary.

As soon as the delegates adopt this Convention Order, each delegate will promptly be furnished with a copy. Immediately after the convention is adjourned, the tellers will meet and shred all convention ballots and caucus ballots. Strict security will be maintained to assure that no none has access to the ballots until the ballots are destroyed.

CONVENTION ELECTION

OATH OF SECRECY 31ST CONVENTION OF THE SPJST

Temporary tellers appointed by the President of the SPJST will serve through the election of the Convention Chairman and ViceChairman. Tellers appointed by the Convention Chairman and Vice-Chairman (one from each district) serve for the remainder of the convention.

Oath of Secrecy 31st Convention of the SPJST The Convention has shown its confidence in me by choosing me as an election teller. I swear or affirm that I will not discuss or disclose how anyone or any lodge voted directly or indirectly. In the caucus election tabulations, I will promptly leave the tabulation room as soon as my district ballots have been counted and will not return unless directed to do so by the Convention Chairman. On a daily basis, when the Convention recesses for the day, the election tellers will immediately meet and shred all convention ballots. Immediately after the convention is adjourned, I agree to meet with the rest of the tellers and burn or shred all convention ballots and caucus ballots. I understand the procedure for vote by ballot and I will follow this procedure.

• Chairman • • • Three observers to the caller • One caller • Two tally CAUCUS ELECTION Tellers One (1) teller is the convention teller from the district and serves as teller chairman. Two (2) tellers are appointed by the district (who is elected in this convention district caucus).

Signed by the Convention Tellers Debbie Kostelka (13) District One James Skrabanek (47) District Two Milton Peterson (6) District Three Arnie Rivera (219) District Four Lonnie Lostak (139) District Five Rita Vanek (151) District Six Valerie Barta (202) District Seven —SPJST—

Two (2) tellers are appointed by the district secretary (who is elected in this convention district caucus). • Teller Chairman • One observer • One caller • One observer • One tally Members who are not delegates and not committee members have the right to attend the caucus but they cannot vote and cannot make motions. They are requested to sit in a separate area.

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SPECIAL STRUCTURE STUDY COMMITTEE REPORT

“Suggested By-Laws of the SPJST” and appears immediately following this cover page. (Digital file available upon request from Home Office.)

Recommendation to the Delegates of the Thirty-First SPJST Convention Submitted by the SPJST Special Structure Committee

Following the “Suggested By-Laws of the SPJST” is a three-column attachment that identifies the suggested modifications. The By-Law Committee recommended the addition of this document following a review of the recommendations by the ByLaw Committee in August 2011. The center column of the second attachment reflects the SPJST By-Laws as approved by the 2008 Convention. The left column identifies the actual wording from the Special Structure Committee document. The right column identifies where the information appears in the newly formatted document. (Digital file available upon request from Home Office.) The final document in this set is a list of ten questions and answers related to the work of the SPJST Special Structure Committee. Thank you for your attention and for your consideration of these items.

Delegates to the Thirty-First SPJST Convention are asked to adopt the recommendation of the Special Structure Committee which is to approve the revised by-law format. A copy of that document is attached to this recommendation. (Digital file available upon request from Home Office.) A two-third’s majority vote in the affirmative is necessary for its approval. In the event that the new format is approved, this document would become the official SPJST By-laws following the 2016 SPJST Convention — not the current convention. As such, any and all of the items contained within the document would be subject to review and/or revision by members and delegates to the 2016 SPJST Convention. In other words, the approval of the new format by delegates to this ThirtyFirst Convention would mean that SPJST members and delegates to the next convention will have four full years to review and/or make changes to the newly revised format.

Questions and Answers Related to the Work of the SPJST Special Structure Committee 1. How did the Special Structure Committee get its start? The Special Structure Committee came into being as a result of actions taken by delegates to the 2004 SPJST Convention. Quoting from the proceedings of the 2004 Convention, “Monta Foster (185) stated that the way we were organized now was acceptable but might not be in the future. We needed to see what structure was necessary and needed to hire a professional consulting firm to work with a SPJST Committee to determine needs, so we could discuss it in the 2008 Convention and decide in the 2012 Convention. We must not make changes for the sake of making changes. We should have information to make a knowledgeable decision. Justine Yeager (84) moved that we accept Monta Foster’s (185) recommendation. Leo Jares (8) seconded this motion and stated that we need further study before

Why the New Format? The new format achieves two primary objectives: 1. Like items are grouped together in a logical and coherent fashion; and 2. The document provides a much more detailed description of Supreme Lodge officer duties and responsibilities and Home Office operations. Originally, it had been the idea of the Special Structure Committee to submit these as two separate documents — By-laws and an Operations Manual. That concept was replaced by simply combining both documents into the format which is being submitted for your consideration. The newly revised format is labeled

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jumping into something we may regret later . . . Convention Chairman Donnie Victorick (9) stated the motion was to put the redistricting aside, defer to the Supreme Lodge for study, with professional consultants, and for them to report at the next Convention. Justine Yeager (84) confirmed this statement and the motion carried”. Brother Foster’s comments and recommendation were conveyed during a session of the convention relating primarily to matters of redistricting. The depth and scale of Brother Foster’s recommendation is perhaps best revealed in a memo which Brother Foster faxed to President Vanicek on May 14, 2008, in advance of the 30th SPJST Convention. The contents of this memorandum was shared with Special Structure Committee Members and appears as an attachment to this document. (Digital file available upon request from the Home Office.)

During this same meeting, Supreme Lodge President Brian Vanicek was directed to consult with the National Fraternal Congress of America (NFCA), the nationwide fraternal trade association, to get their recommendation on a consultant to confer with on this matter. President Vanicek was also requested to organize a representative committee to work on this project. It was determined at this time that the committee would consist of the chairman of each of the four standing committees, along with the Supreme Lodge Chairman, Supreme Lodge President and Supreme Lodge Vice President. President Vanicek was requested to provide an update on the activities of the Special Structure Committee at the April 1517, 2008 meeting of the Supreme Lodge. The first meeting of the SPJST Special Structure Committee was held on Friday, March 14, 2008 at the SPJST Home Office and via telephone conference.

References Attachment: 2004 Convention Proceedings – pages 10 and 11 – Article 43 Attachment: Supreme Lodge January 18, 2008 Special-Called Meeting Minutes Attachment: Monta Foster Fax; May 14, 2008

References Attachment Supreme Lodge January 18, 2008 Special-Called Meeting Minutes Attachment Minutes of the Special Structure Committee Meeting; Friday, March 14, 2008 3. How were members of the Special Structure Study Committee designated?

2. When was the Special Structure Committee designated?

It was determined in the Special Called Meeting of the Supreme Lodge on January 18, 2008 that the committee would consist of the chairman of each of the four standing committees, as well as the Supreme Lodge Chairman, Supreme Lodge President and Supreme Lodge Vice President. Those individuals were as follows: By-Law Committee Chairman Ronnie Rieger (District Two) Finance Committee Chairman Dewyan Weise (District Four) Insurance Committee Chairman Susan Skrabanek (District One) Publication Committee Chairman Jarolyn Popp (District Seven) Supreme Lodge Chairman Donnie Victorick Supreme Lodge President Brian Vanicek

As stated in the By-Laws of the SPJST, “The seven duly elected directors have constant control and supervision over all the management, business transactions, and general progress of our Society. The directors of the Supreme Lodge have the responsibility to see that all by-laws, decisions of conventions and the Supreme Lodge are strictly complied with.” The first to follow-up activity by the Supreme Lodge on the restructuring matter appears in the minutes of a January 18, 2008 Special Called Meeting of the Supreme Lodge. The sole reference to this project reads as follows: “It was agreed to seek a professional consulting firm to work with a committee for possible restructuring ideas.”

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Supreme Lodge Vice President Gene McBride Prior to the first meeting of the Special Structure Committee, Supreme Lodge Chairman Victorick requested that four additional members be added to the committee to ensure broader geographic representation and expertise in considering the matter of restructuring. These individuals were: Larry Laznovsky (District Three) Designated on the basis of his experience with RVOS, Sokol, and other nonprofit/community organizations and Czech heritage groups and activities; past experience as a communications spokesman for a major corporation. Brother Larry Laznovsky passed away on March 26, 2011 Lonnie Lostak (District Five) Designated on the basis of his business experience and service as a director of S.P.J.S.T. Rest Homes; Lisa Bubela (District Six) Designated on the basis of her active involvement with the youth and her experience as a small business owner; and Jerry Sijansky (District Seven) Designated on the basis of his involvement as both a sales representative and lodge president as well as his strong leadership role in Sokol and as a director with the S.P.J.S.T. Rest Homes.

Reference Attachment Special Structure Committee Meeting Minutes – March 14, 2008 6. How did the Special Structure Subcommittee come about and how were its members selected? It was apparent early on that it would be difficult and expensive for the entire committee to meet on a regular basis. The subcommittee was formed at the April 1, 2008, meeting of the Special Structure Committee to provide routine in-depth assessments and suggestions to the structure of the existing by-laws. The subcommittee consisted of Special Structure Committee Chairman Donnie Victorick, Committee Secretary Melanie Zavodny, Brian Vanicek, and Lisa Bubela. Subcommittee members were appointed by Special Structure Committee Chairman Victorick on the basis of their ready availability and willingness to serve. 7. How was the consultant selected? On the basis of the Supreme Lodge recommendation, “to seek a professional consulting firm to work with a committee for possible restructuring ideas,” President Vanicek was directed to contact the National Fraternal Congress of America (NFCA, now the American Fraternal Alliance) for a recommendation. Todd Martin came highly recommended to SPJST by the National Fraternal Congress of America (NFCA) to serve as a consultant on this project. Mr. Martin continues to serve as outside general counsel to the American Fraternal Alliance. For many years, his primary practice has been devoted to the fraternal system during which time he has provided legal services to more than 30 fraternal benefit societies across the country including several fraternal restructuring projects.

4. How was the chairman of the Special Structure Committee chosen? Donnie Victorick was elected to serve as Chairman of the Special Structure Committee at the group’s first meeting. Reference Attachment Special Structure Committee Meeting Minutes – March 14, 2008 5. Were any other individuals appointed to this committee?

8. How much did the consultant cost? Vestnik Editor/Director of Communication Melanie Zavodny was elected to the committee at its first meeting on March 14, 2008. She was also designated at this time to serve as secretary.

Three invoices totaling $10,195.97 were paid to Mr. Martin for his work with the Special Structure Committee. SPJST continues to maintain a positive working relation-

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ship with Mr. Martin and over the past five years has periodically consulted with him on legal matters relevant to life insurance as well as the formation of the SPJST Foundation.

Meetings Friday, March 14, 2008 – Teleconference Tuesday, April 1, 2008 – SPJST Home Office in Temple Monday, May 5, 2008 – SPJST Home Office in Temple Sunday, June 8, 2008 – SPJST Home Office in Temple Wednesday, July 29, 2009 – SPJST Home Office in Temple Monday, October 12, 2009 – SPJST Home Office in Temple Saturday, January 15, 2011 – SPJST Home Office in Temple

9. When were Mr. Martin’s recommendations presented to the committee? How were they received and how did the committee proceed from that point forward? Mr. Martin’s restructured by-laws document was presented to the Special Structure Committee members in March 2008. The restructuring ideas presented by Mr. Martin were discussed at length by the committee. In reporting to the delegates of the 30th SPJST Convention in 2008 on behalf of the committee, President Vanicek and Committee Secretary Zavodny stated that the work of the Special Structure Committee was still in progress and would be delivered to the delegates of the 31st SPJST Convention. This is the document that we now have in hand and which we are seeking to present to the 2012 SPJST delegates for their consideration. Generally stated, it was the contention of the consultant that a lot of the detailed information included in our by-laws would be better presented in a policies and procedures manual – as a companion piece to the bylaws. Members of the committee saw merit in elaborating on the scope and description of various Supreme Lodge officer positions as well as elaborating on many operating procedures which had previously not been included in the By-Laws. These amended items now appear under Article 27 of the document that you are being asked to consider. In addition to reviewing our by-laws, an effort was made by the committee to organize the material – not eliminate it – into a more clean and concise manner.

Dates of Subcommittee of Special Committee Meetings/Workdays were as follows: Monday, April 21, 2008 – SPJST Home Office in Temple Monday, April 28, 2008 – SPJST Home Office in Temple Tuesday, June 16, 2009 – SPJST Home Office in Temple Monday, November 30, 2009 – SPJST Home Office in Temple Monday, November 8, 2010 – SPJST Home Office in Temple Monday, March 5, 2012 – SPJST Home Office in Temple —SPJST—

SUPPLEMENTAL REPORT FROM SECRETARY-TREASURER You have my report for the period ending December 31, 2011. I want to add that we had an outstanding three monthly, perhaps even historic. Our surplus increased from $16.3 million to $17.7 million, an increase of $1.4 million. Our net income was $367,004. Leonard Mikeska Secretary-Treasurer —SPJST—

10. When and where did the Special Structure Committee and/or Subcommittee meet? The meeting schedule was as follows: Dates of Special Structure Committee

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Premiums Received In Advance Interest Maintenance Reserve Asset Valuation Reserve Other Accrued Liabilities

SUPPLEMENTAL REPORT FROM FINANCIAL SECRETARY June 8, 2012

TOTALS ..................................$204,733,728

Dear Members: In accordance with the 2008 SPJST ByLaws, I am submitting a report of our Society which is extracted from the March, 2012 Quarterly Statement. This report gives you pertinent items of information concerning our Society. All items are entered as found in the March, 2012 Statement which was filed with the Texas Department of Insurance for the first quarter of 2012. Please review this report in detail and should you have any questions, please contact me. Fraternally, Roy W. Vajdak Financial Secretary —SPJST—

Unassigned Funds TOTALS

17,768,869 $222,502,596

RECOMMENDATION OF THE BY-LAW COMMITTEE SUPREME LODGE Establish a permanent Screening Committee for the purpose of reviewing all qualifications of submitted candidates for Supreme Lodge Officers, Editor/Director of Communication and seven directors. Gather additional background information and submit the slate of qualified candidates to the delegates 90 days prior to the convention. The committee will consist of the Chairperson of the four standing committees, two outside members selected by the four standing committee members. A chairman will be elected from within its members. The Human Resources Administrator will serve in an advisory position to this committee.

SPJST FINANCIAL STATEMENT AS OF MARCH 31, 2012 STATEMENT OF FINANCIAL CONDITION

Ronnie Rieger (29),

Chairman, District II Mildred Holeman (88), Vice Chairman, District V Beverly J. Teplicek (49) Secretary District IV Richard Ford (13) District I Kay Lynn Kovar (25) District III Joe Siptak (4) District VI Bettie V. House (202) District VII

ASSETS Bonds $172,919,374 Stocks 12,683,456 Mortgage Loans 24,292,224 Real Estate: Properties occupied by the Society 2,461,515 Properties held for the production of income 64,754 Certificate Loans 1,742,130 Cash 5,874,618 Other assets 2,664,527

Note: Please refer to pages 15-16 of the Proceedings of the 31st Convention for the revised text of this recommendation, as approved by delegates to the 31st SPJST Convention. —SPJST—

TOTALS .................................$222,502,597 LIABILITIES AND RESERVES Certificate Reserves Certificate Benefits Payable

87,161 4,665,014 3,142,019 2,933,560

$193,377,619 528,355

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SPJST 31st annual