Minutes - 07/21/2010 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
Julv 21. 2010
UNOFFICIAL UNTIL APPROVED AS WRITTEN X
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON October 20, 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, Secretary Alan Feldman, Trustee Edward Caspers,
Trustee Hitesh Patel
ABSENT: Vice President Vel Torlo
IN ATTENDANCE: Finance Director Sharon Dangles, Robert Thompson from MB Financial,
Phillip Kosmala and Jeff Grenchik from Lowery Asset Consulting, LLC
3. ELECTION OF OFFICERS:
Motion by Robert Birdsall, seconded by Edward Caspers, to nominate Vel Torlo for President of
the Oak Brook Police Pension Fund Board of Trustees. VOICE VOTE: Motion carried.
Motion by Edward Caspers, seconded by Robert Birdsall, to elect Vel Torlo President of the Oak
Brook Police Pension Fund Board of Trustees. VOICE VOTE: Motion carried.
Motion by Edward Caspers, seconded by Hitesh Patel, to nominate Robert Birdsall for Vice
President of the Oak Brook Police Pension Fund Board of Trustees.
VOICE VOTE: Motion carried.
Motion by Hitesh Patel, seconded by Alan Feldman, to elect Robert Birdsall Vice President of the
Oak Brook Police Pension Fund Board of Trustees. VOICE VOTE: Motion carried.
Motion by Hitesh Patel, seconded by Robert Birdsall, to nominate Alan Feldman for Secretary of
the Oak Brook Police Pension Fund Board of Trustees. VOICE VOTE: Motion carried.
Motion by Edward Caspers, seconded by Hitesh Patel, to elect Alan Feldman Secretary of the
Oak Brook Police Pension Fund Board of Trustees. VOICE VOTE: Motion carried.
4. APPROVAL OF MINUTES:
a. Approval of Board of Trustees Regular Meeting Minutes of May 5, 2010
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the Minutes of the May
5, 2010 Regular Board Meeting. VOICE VOTE: Motion carried.
5 CONSENTAGENDA:
All items on the Consent Agenda are considered to be routine in nature and will be enacted in
one motion.
Motion by Trustee Patel, seconded by Trustee Caspers, to approve the Consent Agenda.
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 3 May 5, 2010
ROLL CALL:
Ayes: 4 — Trustee Caspers, Trustee Patel, Vice President Birdsall, Secretary Feldman
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried.
a. Approval of May 1 -31, 2010 checks in the total amount of $167,339.23
b. Approval of June 1 -30, 2010 checks in the total amount of $150,557.81
c. Approval of Lauterbach & Amen, LLP's invoices in the total amount of $1,800.00, for services
in April and May, 2010
d. Approval of Pension Clerk Kane's invoice in the amount of $268.75
for the months of April, May and part of July, 2010
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 Second Quarter 2010
Phil Kosmala, of Lowery Asset Consulting, LLC, stated that discussed the current recession
situation. He stated that this is a slow growth environment.
Discussion ensued regarding underperforming stocks. Phil Kosmala stated that there are a
couple things that they are watching, but are not recommending any changes at this time.
Jeff Grenchik, of Lowery Asset Consulting, LLC, discussed the asset allocation and manager
returns as of this date.
Robert Thompson, of MB Financial, reported on MB Financial's status. He stated that they have
year -to -date added about $771,000 to the portfolio.
b. Approval of Investment Transactions (second quarter, 2010)
Motion by Secretary Feldman, seconded by Trustee Patel, to approve the Investment
Transactions from the Second Quarter, 2010, per pages 7 -15 of Section 4 of Lowery Asset
Consulting, LLC Presentation.
ROLL CALL:
Ayes: 4 — Trustee Patel, Vice President Birdsall, Secretary Feldman, Trustee Caspers
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried
c. Actuarial Valuation Report for Year Beginning January 1, 2010 and Ending December 31,
2010
Finance Director Dangles referred to page 5 of the Actuarial Valuation Report, prepared by
Timothy W. Sharpe, Actuary, and pointed out that the Tax Levy as a Percentage of Payroll
decreased from 2009. She stated that the Accrued Liability is about $37 million dollars, the
Actuarial Value of Assets is about $27 million dollars and the Unfunded Accrued Liability is about
$10.4 million dollars. She stated that the Pension Fund is 71 % funded.
d. Discussion regarding Actuary Services
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 2 of 3 July 21, 2010
Discussion ensued regarding looking into utilizing a different actuary.
Motion by Trustee Caspers, seconded by Trustee Patel, to approve the Actuarial Valuation
Report Beginning January 1, 2010 and Ending December 31, 2010.
ROLL CALL:
Ayes: 4 — Vice President Birdsall, Secretary Feldman, Trustee Caspers, Trustee Patel
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried
9. INFORMATION AND UPDATES:
a. Scheduling of fourth quarterly meeting in 2010:
Agreement to set fourth quarterly meeting for 7:00 p.m. on Wednesday, October 20, 2010
Vice President Birdsall informed the Pension Fund Board that an Application for Duty Disability
has been received by Board Attorney, Richard Reimer, from Officer Bob Mudra's attorney. Vice
President Birdsall stated that once all the medical records are obtained, three doctors will be
selected by Attorney Reimer for the Board to approve via e-mail vote. Vice President Birdsall
explained that the next step will be for the approved doctors to review Officer Mudra's records
and then examine him for his injury. After reports are received from the three approved doctors,
Vice President Birdsall stated that a hearing will be scheduled. He stated that this disability
application is allegedly due to arthritis and inability to walk properly allegedly stemming from an
ankle injury from 1991 or 1992. He further stated that he could be awarded a non -duty disability if
the Board determines it.
Finance Director Dangles stated that if Officer Mudra qualifies for a duty disability, he would
receive 65% of his pension rather than 50% pension.
Discussion ensued regarding recent pension legislation and needed reform
10. ADJOURNMENT:
Motion by Trustee Caspers, seconded by Secretary Feldman, to adjourn the Board of Trustees of
the Police Pension Fund meeting at approximately 8:30 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 July 21, 2010