Minutes - 04/22/2010 - Firefighter's Pension Fund BoardMINUTES OF THE REGULAR MEETING OF
OAK BROOK FIREFIGHTERS' PENSION FUND
April 22, 2010
A regular meeting of the Board of Trustees of THE OAK BROOK FIREFIGHTERS' PENSION FUND was
held on Thursday, April 22, 2010 at 9:OOAM at the Butler Government Center, Upper Level Conference
Room at 1200 Oak Brook Road, Oak Brook, IL 60523 pursuant to notice, a copy of which is attached to their
minutes.
CALL TO ORDER BY PRESIDING OFFICER
President Mike Erickson called the meeting to order at 9:05 AM
ROLL CALL
Upon roll call the following answered:
Present: President Michael Erickson, Secretary John Fagan, Trustee Sharon Dangles, Trustee
Mark Fleishman, Trustee Timothy Schlindwein
Absent: None
Also Present: Brian Speers of Merrill Lynch, David Harrington and Terese Krafcheck of MB
Financial, Becky Davis of Lauterbach & Amen
APPROVAL OF MINUTES —January 19, 2010, February 17, 2010
The Board reviewed and discussed the January 19, 2010 regular meeting minutes and the February 17, 2010
special meeting minutes as presented in the board meeting packet. A motion by Schlindwein to approve as
presented, the minutes from the January 19, 2010 regular board meeting. Motion unanimously
carried. A motion by Fagan to approve the minutes from the February 17, 2010 special board
meeting, with the final sentence in INFORMATION AND UPDATES deleted, second by Dangles.
Motion unanimously carried.
CONSENT AGENDA
The Board reviewed and discussed the Consent Agenda as presented in the board meeting packet. A motion
by Fagan to approve the Consent Agenda as presented with disbursements totaling $650,955.28, for
December 2009 through March 2010 and to also approving the Richard Reimer invoice submitted in
the amount of $75.00, second by Fleishman. Roll Call Vote: Schlindwein — yes, Fleishman — yes,
Dangles — yes, Fagan — yes, Erickson — yes. Motion unanimously carried.
ITEMS REMOVED FROM THE CONSENT AGENDA - None
a. Discussion on RFP — review template and list of consultants provided: The Board reviewed and
amended the templates for the cover letter, Investment Services Request for Proposal (RFP) and the
RFP Contact List, presented in the board meeting packet. The due date was set for proposals to be
returned by 5/28/2010. PSA Davis will amend the cover letter and RFP and email out to all
contacts provided by the Board.
NEW BUSINESS
a. Treasurer's Report of the Asset Summary of the Fund: The Board reviewed and discussed the Asset
Summary for 3/31/2010 as presented in the board meeting packet. The Asset Summary stated as of
3/31/10 Total Fixed Income at 51.90 %, Equity Funds at 48.10% with Total Assets Market Value of
$21,262.409.
b. Merrill Lynch Investment Management Presentation: Speers presented and reviewed with the Board
the Performance Report as of 3/31/2010 which was up 4.96% for the I" quarter; ending market value
of $10,498.837. Speers made his recommendations to the Board. Following no further questions
from the Board, Mr. Speers was excused and left the meeting at 10:52 AM.
c. Approval of Investment Transactions: - not addressed
d. MB financial Investment Management Presentation: Harrington and Krafcheck presented and
reviewed with the Board the Performance Report as of March 31, 2010. Total Fund was up 2.29%
for the I" quarter, ending market value of $10,584.088. Ms. Krafcheck updated and discussed with
the Board the current status of the potential legislative changes in Springfield. Following no
further questions from the Board, Mr. Harrington and Ms. Krafcheck were excused and left the
meeting at 11:20 AM.
e. Approval of Investment Transactions: - not addressed. Schlindwein reviewed and discussed with
the Board the current asset allocations, recommending cutting back to 45% on Equities —
approximately $600K out of SPDR S &P 500. A motion by Schlindwein to reduce Equity
allocation to the 45% target by selling SPDR S &P 500 and moving cash to MB Financial into
Fixed Income portfolio, second by Fleishman. Roll call vote: Schlindwein — yes, Fleishman —
yes, Fagan — yes, Dangles — yes, Erickson — yes. Motion unanimously carried. A motion by
Schlindwein to shift Columbia Small Cap to Perkins Small Cap Fund, second by Fleishman.
Roll call vote: Schlindwein — yes, Fleishman — yes, Fagan — yes, Dangles — yes, Erickson — yes.
Motion unanimously carried.
f. Fiduciary Liability Insurance Quote from Ullico Casualty Company: The Board reviewed and
discussed the Illinois Amendatory Endorsement from Hudson Insurance Company and the Ullico
Fiduciary Liability Insurance Premium Quotation as presented in the board meeting packet. Dangles
stated the quote was for $1,000,000 Aggregate Limit with a Basic Premium of $3,988.00. A motion
by Fleishman to accept and enter into contract with Ullico for 1 year for a premium not to
exceed $4,500.00 and subject to Board Attorney review, second by Schlindwein. Roll call vote:
Schlindwein — yes, Fleishman — yes, Fagan — yes, Dangles — yes, Erickson — yes. Motion
unanimously carried.
g. Designation of FOIA and OMA (Open Meetings Act) officers: The Board discussed and
reviewed the summary provided by Board Attorney Richard Reimer's office as presented in
the board meeting packet. Dangles stated that she would contact the City to discuss
procedure with the current City of Oak Brook FOIA officer, Blaine Wing, Charlotte Pruss
and Rachel Evenson who handle the FOIA requests.
It. Trustee Training for 2010: The Board discussed the upcoming Trustee Training opportunities
with the IPPFA as presented in the board meeting packet. Members will be attending either
the St. Charles, IL Spring Conference or the St. Louis, MO Fall Conference being held this
year. Erickson and Schlindwein will provide their certifications for the 8 hours trustee
training received in January, 2010, as soon as possible.
INFORMATION AND UPDATES
Erickson spoke to Board Attorney Richard Reimer regarding the RFP process reporting that Investment
Managers do not require an RFP process; Investment Consultants do require an RFP process and
recommended the RFP process. Reimer also stated that there was no need to publish the RFP request.
Fleishman and Fagan have already filed their Statement of Economic Interest for DuPage County.
The next board meeting date was discussed and determined to be: July 20, 2010 @ 9:00 AM
ADJOURNMENT
A motion by Schlindwein to adjourn the meeting at 12:27 PM, second by Fleishman. Motion
unanimously carried.
Respectfully submitted,
Becky Davis, Pension Services Administrator, minutes prepared and submitted on May 25, 2010.
ATTEST: John Fagan, Secretary