Minutes - 12/03/2010 - Firefighter's Pension Fund BoardMINUTES OF THE SPECIAL MEETING OF
OAK BROOK FIREFIGHTERS' PENSION FUND
DECEMBER 03, 2010
A special meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on
December 03, 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 9:06 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: PSA Becky Davis of Lauterbach & Amen (L &A)
APPROVAL OF MINUTES — October 19, 2010
The Board reviewed the previous minutes as presented in the board meeting packet. A motion by
Schlindwein to approve the October 19, 2010 minutes as presented, second by Dangles. There
was no further discussion. Motion unanimously carried.
BOARD DELIBERATION — SELECTION OF INVESTMENT CONSULTANT
The Board distributed and reviewed the notes made by President Erickson regarding the contacts he
made to the references provided for the two final candidates: Lowery Asset Consulting (LAC) and
Investment Performance Services (IPS). President Erickson noted that there was one reference from
each consulting firm that he was unable to contact; all references highly recommended the consulting
firms they used. The references for IPS both stated that they had been with the firm for 20 years or
more; the references for LAC stated that they had been with the firm for either 12 years or 6 to 7 years.
The Board further noted that the Oak Brook Police Pension Fund has engaged LAC and are happy with
their performance so far; possibly another benchmark to use. Proposals with regard to fees were
discussed for both firms. After much deliberation, discussion and review of previous notes, the Board
called for a vote.
A motion by Schlindwein to retain the services of IPS and to submit their contract for Board
Attorney review and subject to Board Attorney approval, second by Fleishman. There was no
further discussion. Roll Call Vote: Erickson — no, Fagan — yes, Schlindwein — yes, Dangles — yes,
Fleishman — yes. Motion Carried (4 -yes, 1 -no).
A motion by Schlindwein to authorize the Investment Performance Services rate stated in
proposal #3 as follows: 15 basis points (0.15 %) on the first $20 million; 10 basis points (0.10 %)
on the next $10 million; 5 basis points (0.05 %) thereafter; minimum annual fee of $30,000;
Inclusive of proposed services and expenses and subject to Board Attorney approval of contract;
and to submit the Board Attorney approved contract at the next Board meeting in January 2011,
second by Fleishman. Roll Call Vote: Erickson — yes, Fagan — yes, Schlindwein — yes, Dangles —
yes, Fleishman — yes. Motion unanimously carried.
MINUTES OF THE SPECIAL MEETING OF
OAK BROOK FIREFIGHTERS' PENSION FUND
DECEMBER 03, 2010
A special meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on
December 03, 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 9:06 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: PSA Becky Davis of Lauterbach & Amen (L &A)
APPROVAL OF MINUTES — October 19, 2010
The Board reviewed the previous minutes as presented in the board meeting packet. A motion by
Schlindwein to approve the October 19, 2010 minutes as presented, second by Dangles. There
was no further discussion. Motion unanimously carried.
BOARD DELIBERATION — SELECTION OF INVESTMENT CONSULTANT
The Board distributed and reviewed the notes made by President Erickson regarding the contacts he
made to the references provided for the two final candidates: Lowery Asset Consulting (LAC) and
Investment Performance Services (IPS). President Erickson noted that there was one reference from
each consulting firm that he was unable to contact; all references highly recommended the consulting
firms they used. The references for IPS both stated that they had been with the firm for 20 years or
more; the references for LAC stated that they had been with the firm for either 12 years or 6 to 7 years.
The Board further noted that the Oak Brook Police Pension Fund has engaged LAC and are happy with
their performance so far; possibly another benchmark to use. Proposals with regard to fees were
discussed for both firms. After much deliberation, discussion and review of previous notes, the Board
called for a vote.
A motion by Schlindwein to retain the services of IPS and to submit their contract for Board
Attorney review and subject to Board Attorney approval, second by Fleishman. There was no
further discussion. Roll Call Vote: Erickson — no, Fagan — yes, Schlindwein — yes, Dangles — yes,
Fleishman — yes. Motion Carried (4 -yes, 1 -no).
A motion by Schlindwein to authorize the Investment Performance Services rate stated in
proposal #3 as follows: 15 basis points (0.15 %) on the first $20 million; 10 basis points (0.10 %)
on the next $10 million; 5 basis points (0.05 %) thereafter; minimum annual fee of $30,000;
Inclusive of proposed services and expenses and subject to Board Attorney approval of contract;
and to submit the Board Attorney approved contract at the next Board meeting in January 2011,
second by Fleishman. Roll Call Vote: Erickson — yes, Fagan — yes, Schlindwein — yes, Dangles —
yes, Fleishman — yes. Motion unanimously carried.
The Board agreed to meet for the next regular meeting on January 20, 2011 at 9:00 AM and to include
a conference call to Tim Sharpe to discuss how the new legislation will relate to the assumptions used
by Tim Sharpe. The Board is interested in how his report will reflect the new legislation changes and
any alternatives he is considering. A second special meeting was scheduled for March 3, 2011 at 9:00
AM for the purpose to discuss the Tim Sharpe Actuarial Report.
PSA Davis offered to provide Trustee Binders for each member of the Board to use as a reference tools
and to maintain documents and notes by the Board. Davis will provide these at a later meeting.
The Board discussed reimbursement of continuing education expenses; and the upcoming statements
of economic interest.
ADJOURNMENT
A motion by Fleishman to adjourn the meeting at 11:13 AM, second by Dangles. Motion
unanimously carried.
Respectfully submitted, and minutes prepared by Becky Davis, PSA, on January 15, 2011.
ATTEST: John Fagan, Secretary