Minutes - 08/06/2008 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
August 6, 2008
UNOFFICIAL UNTIL APPROVED AS WRITTEN
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON
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 Upper Level Conference 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 Trustee Vel Torlo, Trustee Alan Feldman, Trustee Richard Badowski, Trustee Susan
Templeton, President Robert Birdsall
ABSENT None
IN ATTENDANCE Darrell Langlois, Finance Director, MB Financial Bank Representatives Bob
Thompson, Rick Block, Lowery Asset Consulting, LLC Representatives Phil Kosmala, Jeff Grenchik
3 ELECTION OF OFFICERS
Motion by Trustee Feldman, seconded by Trustee Badowski, to nominate Robert Birdsall as candidate for
President VOICE VOTE Motion carried No other nominations
Motion by Trustee Feldman, seconded by Trustee Badowski, to elect Robert Birdsall President
VOICE VOTE Motion carried
Motion by Trustee Badowski, seconded by Trustee Templeton, to nominate Vel Torlo as candidate for
Vice President VOICE VOTE Motion carried No other nominations
Motion by Trustee Feldman, seconded by Trustee Badowski, to elect Vel Torlo Vice President
VOICE VOTE Motion carried
Motion by Trustee Templeton, seconded by Trustee Badowski, to nominate Alan Feldman as candidate for
Secretary VOICE VOTE Motion carried No other nominations
Motion by Vice President Torlo, seconded by Trustee Badowski, to elect Alan Feldman Secretary
VOICE VOTE Motion carried
4 APPROVAL OF MINUTES
a Approval of Board of Trustees Regular Meeting Minutes of April 30, 2008
Motion by Trustee Templeton, seconded by Secretary Feldman, to approve the Minutes of the April 30,
2008 Regular Board Meeting as presented VOICE VOTE Motion carried
Approval of Board of Trustees Annual Members Meeting Minutes of May 15, 2008
Motion by Secretary Feldman, seconded by Trustee Badowski, to approve the Minutes of the May 15, 2008
Annual Members Meeting as presented VOICE VOTE Motion carried
c Approval of Board of Trustees Special Meeting Minutes of June 5, 2008
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 4 August 6, 2008
Motion by Secretary Feldman, seconded by President Birdsall, to approve the Minutes of the June 5, 2008
Special Board Meeting as presented 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 Trustee Templeton, seconded by Secretary Feldman, to approve the Consent Agenda
ROLL CALL
Ayes 5 — Vice President Torlo, Secretary Feldman, Trustee Badowski, Trustee Templeton,
President Birdsall
Nays 0 — None
Absent 0 — None Motion carried
a Approval of April 1 -30, 2008 checks in the total amount of $130,678 83
b Approval of May 1 -31, 2008 checks in the total amount of $122,954 32
c Approval of June 1 -30, 2008 checks in the total amount of $129,138 07
d Approval of July 1 -31, 2008 checks in the total amount of $121,439 77
e Approval of Lauterbach & Amen, LLP's invoices in the total amount of
$2,595 00 (April, May, June, 2008)
f Approval of Pension Clerk Kane's invoice in the amount of $250 00
for the months of May through June, 2008
5 ITEMS REMOVED FROM CONSENT AGENDA — None presented
6 NEW BUSINESS
a MB Financial Presentation
Mr Thompson explained that the second quarter ended June 30, 2008 (Page 3, under Tab 1) $26,364 807
valuation He stated that it was a tough quarter for fixed income and equities Mr Block explained that the
second quarter was a dismal quarter, even the most conservative investor lost ground
Finance Director Langlois inquired whether there were concerns by MB Financial regarding the Barron's
Funds Mr Block stated it has come under their radar and they are continuing to watch this
The value added from investments for the second quarter was - $522,449 and year to date - $1,020,956
The money market return for the second quarter was 0 30 %, fixed income return was -2 21 %, equity return
was -1 57% with a total account return of -1 94%
The current portfolio allocation of The Fund for money market was 1 %, fixed income securities were 60%
and the equity securities was 39% The equity sector allocation for large capitalization US stocks was
60 %, small capitalization US stocks was 18 %, international stocks was 18% and REIT Fund was 4%
Since inception the annual long -term portfolio performance was 7 26 %, stocks 5 90 %, bonds 5 90% and T-
bills 3 77%
b Approval Of Investment Transactions
Motion by Secretary Feldman, seconded by Trustee Templeton, to approve the investment transactions from
April 1, 2008 to June 30, 2008, as indicated in Tab 5 of the MB Financial's Investment Performance Report
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 2 of 4 August 6, 2008
ROLL CALL VOTE
Ayes 5 — Secretary Feldman, Trustee Badowski, Trustee Templeton, President Birdsall, Vice President
Torlo
Nays 0 -- None
Absent 0 — None Motion carried
Finance Director Langlois stated that the Investment Subcommittee have recommended hiring Lowery Asset
Consulting, LLC as an independent advisor They will be starting to transition the money management side of
the equities and evaluate the fixed income performance
c Approval of Donald Krenner's Application for Admission to the Oak Brook Police Pension Fund
Motion by Trustee Templeton, seconded by Vice President Torlo, to approve Donald Krenner's Application for
Admission to the Oak Brook Police Pension Fund
ROLL CALL VOTE
Ayes 5 — Trustee Badowski, Trustee Templeton, President Birdsall, Vice President Torlo and Secretary
Feldman
Nays 0 -- None
Absent 0 — None Motion carried
d Lowery Asset Consulting, LLC Presentation
After the Presentation, Finance Director Langlois stated that it would cost $28,000 per year if Lowery is
hired as consultants Mr Kosmala stated that they have some specific recommendations, actionable type
items Before changes are made, Finance Director Langlois stated that the first decision to be made is whether
to hire Lowery as consultants, and then work out some type of system Mr Kosmala stated that Lowery is
happy to meet with and evaluate the existing custodian and look at the existing bond portfolio Finance Director
Langlois stated that if Lowery is hired, he has a custody -only price -quote from MB Financial on the equity side,
the Board could decide to hire Lowery and MB Financial could continue as custodian and fixed income
manager until Lowery advises the Board to make a change and then start easing into change on the equity
side Discussion regarding Lowery making recommendations to the Board, but not "touching" the money Mr
Kosmala stated that they would keep the Board apprised of any changes in the market Discussion regarding
the Board being informed of every transaction and approving it, but that typically Finance Director Langlois is
contacted to assure that the Board's direction is being adhered to and that he would be the one directing the
custodian
e Approval of Lowery Asset Consulting, LLC Consulting Agreement
Motion by Secretary Feldman, seconded by Trustee Templeton, to approve Lowery Asset Consulting, LLC
Consulting Agreement
ROLL CALL VOTE
Ayes 5 — Trustee Templeton, President Birdsall,
Badowski
Nays 0 -- None
Absent 0 — None Motion carried
Vice President Torlo, Secretary Feldman and Trustee
Special meeting set for Wednesday, September 17, 2008, at 7 00 p m for Lowery Presentation
7 ADJOURNMENT
Motion by Vice President Torlo, seconded by Trustee Templeton, to adjourn the Board of Trustees of the
Police Pension Fund meeting at 8 40 p m VOICE VOTE Motion carried
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 3 of 4 August 6, 2008
ATTEST
/s/ Alan Feldman
Alan Feldman, Secretary
Board of Trustees of the Police Pension Fund
/s/ Rosemary A Kane
Rosemary A Kane, Recording Secretary
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 4 of 4 August 6, 2008