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Minutes - 05/05/2010 - Police Pension Fund BoardVILLAGE OF OAK BROOK BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes Mav 5. 2010 UNOFFICIAL UNTIL APPROVED AS WRITTEN X OR AS AMENDED BY BOARD OF TRUSTEES OF THE POLICE PENSION FUND ON July 21, 2010 1. CALL TO ORDER: The Regular Meeting of the Board of Trustees of the Oak Brook Police Pension Fund was called to order by President Birdsall at 7:00 p.m. in the Samuel E. Dean Board Room of the Butler Government Center, 1200 Oak Brook Road, Oak Brook, Illinois. 2. ROLL CALL: The roll was called with the following persons PRESENT: President Robert Birdsall, Vice President Vel Torlo, Secretary Alan Feldman, Trustee Edward Caspers, Trustee Hitesh Patel ABSENT: None IN ATTENDANCE: Finance Director Sharon Dangles, Phillip Kosmala and Jeff Grenchik from Lowery Asset Consulting, LLC 3. PRESIDENT'S COMMENTS: Finance Director Dangles discussed liability insurance for Board and that the quotes are reflected on the percentage funded and assets. She stated that the annual premium would be just under $4,000.00. She stated that if the Oak Brook Police Pension Fund was funded at a higher percentage (currently at around 68 %), the insurance rate would be better. Trustee Patel inquired as to what the outcome was of the Village Board's discussion in regard to the Police Pension Board's recommendations regarding rate of return on investments and salary increase percentages. Finance Director Dangles replied that the Village Board voted 7% rate of return on investments and 4% for the salary increase. It was stated that the Police Pension Board's recommendations were 6.75% rate of return on investments and 3.75% salary increase. (Finance Director Dangles exited the meeting.) 4. APPROVAL OF MINUTES: a. Approval of Board of Trustees Regular Meeting Minutes of February 3, 2010 Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the Minutes of the February 3, 2010 Regular Board Meeting. VOICE VOTE: Motion carried. 5 CONSENT AGENDA: All items on the Consent Agenda are considered to be routine in nature and will be enacted in one motion. Motion by Secretary Feldman, seconded by Trustee Patel, to approve the Consent Agenda. ROLL CALL: Ayes: 5 — Secretary Feldman, Trustee Caspers, Trustee Patel, President Birdsall, Vice President Torlo Nays: 0 — None Absent: 0 — None. Motion carried. a. Approval of January 1 -31, 2010 checks in the total amount of $148,538.41 b. Approval of February 1 -28, 2010 checks in the total amount of $141,788.41 c. Approval of March 1 -31, 2010 checks in the total amount of $145,133.21 d. Approval of April 1 -30, 2010 checks in the total amount of $142,598.15 BOARD OF TRUSTEES OF THE POLICE PENSION FUND Minutes Page 1 of 3 May 5, 2010 e. Approval of Lowery Asset Consulting, LLC's invoice in the amount of $7,000.00, dated March 19, 2010 f. Approval of Lauterbach & Amen, LLP's invoices in the total amount of $4,560.00, for services in November and December, 2009 and January and February, 2010 g. Approval of Contravisory Investment Management, Inc. invoice for the period April 1 through June 30, 2010 in the amount of $2,243.00 h. Approval of Illinois Public Pension Fund Association's Annual Membership Dues invoice in the amount of $750.00 i. Approval of Midwest Environmental Medicine's invoice in the amount of $395.00 j. Approval of Pension Clerk Kane's invoice in the amount of $99.74 for the months of February and March, 2010 k. Approval of Eileen Donahue's invoice in the amount of $50.00 for services of Acting Pension Clerk at the February 3, 2010 meeting. 6. ITEMS REMOVED FROM CONSENT AGENDA— None presented. 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Lowery Asset Consulting, LLC /MB Financial Investment Management Performance Reports for First Quarter 2010 Phil Kosmala of Lowery Asset Consulting, LLC, stated that equity markets performed very well in the First Quarter, 2010. He stated that it was decent quarter for fixed income. He touched on the activity in April, 2010 as being very good and that the dollar has continued to strengthen in international markets. Mr. Kosmala discussed the Executive Summary from the report. He discussed that in the current inflationary market, two asset classes do well: commodity and international investments. He stated that the portfolio for the quarter was up 2.4 % overall. Jeff Grenchik of Lowery Asset Consulting, LLC compared the most recent numbers with December, 2008. b. Approval of Investment Transactions (first quarter, 2010) Motion by Vice President Torlo, seconded by Trustee Caspers, to approve the Investment Transactions from the First Quarter, 2010, per Section 4 of Lowery Asset Consulting, LLC Presentation. ROLL CALL: Ayes: 5 —Trustee Caspers, Trustee Patel, President Birdsall, Vice President Torlo, Secretary Feldman Nays: 0 — None Absent: 0 — None. Motion carried c. Approval of Physician's Certificate of Disability — Michael Ciolino Motion by Vice President Torlo, seconded by Secretary Feldman, to approve the Physician's Certificate of Disability for Michael Ciolino. ROLL CALL: Ayes: 5 — Trustee Patel, President Birdsall, Vice President Torlo, Secretary Feldman, Trustee Caspers Nays: 0 — None Absent: 0 — None. Motion carried d. Approval of Proposal from Lauterbach & Amen, LLP for Preparation and Filing of Annual Reports to the Illinois Division of Insurance for years 2010, 2011 and 2012 Motion by Vice President Torlo, seconded by Secretary Feldman, to approve the Lauterbach & Amen, LLP Proposal for Preparation and Filing of Annual Reports to the Illinois Division of Insurance for years 2010, 2011 and 2012.. BOARD OF TRUSTEES OF THE POLICE PENSION FUND Minutes Page 2 of 3 February 4, 2010 ROLL CALL: Ayes: 5 —President Birdsall, Vice President Torlo, Secretary Feldman, Trustee Caspers, Trustee Patel Nays: 0 — None Absent: 0 — None. Motion carried Discussion regarding pursuing quotes from actuarial services. 9. INFORMATION AND UPDATES: a. Scheduling of first quarterly meeting in 2010: Agreement to set first quarterly meeting for 7:00 p.m. on Wednesday, July 21, 2010. 10. ADJOURNMENT: Motion by Secretary Feldman, seconded by Vice President Torlo, to adjourn the Board of Trustees of the Police Pension Fund meeting at 8:03 p.m. VOICE VOTE: Motion carried. ATTEST: Alan Feldman /s/ Alan Feldman, Secretary Board of Trustees of the Police Pension Fund BOARD OF TRUSTEES OF THE POLICE PENSION FUND Minutes Page 3 of 3 February 4, 2010