Minutes - 10/20/2010 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
October 20. 2010
UNOFFICIAL UNTIL APPROVED AS WRITTEN 4
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON February 16, 2011
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 Torlo 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 Vel Torlo, Vice President Robert Birdsall, Secretary Alan Feldman,
Trustee Edward Caspers, Trustee Hitesh Patel
ABSENT: None
IN ATTENDANCE: Phillip Kosmala and Jeff Grenchik from Lowery Asset Consulting, LLC
3. PRESDIENT'S COMMENTS:
4. APPROVAL OF MINUTES:
a. Approval of Board of Trustees Regular Meeting Minutes of July 21, 2010
Motion by Trustee Caspers, seconded by Secretary Feldman, to approve the Minutes of the July
21, 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 Caspers, seconded by Trustee Patel, to approve the Consent Agenda.
ROLL CALL:
Ayes: 5 — Secretary Feldman, Trustee Caspers, Trustee Patel, Vice President Birdsall,
President Torlo
Nays: 0 — None
Absent: 0 — Motion carried.
a. Approval of July 1 -31, 2010 checks in the total amount of $148,713.41
b. Approval of August 1 -31, 2010 checks in the total amount of $144,835.61
c. Approval of September 1 -30, 2010 checks in the total amount of $141,073.41
d. Approval of Lowery Asset Consulting, LLC invoices dated July 2 and September 16, 2010 for
services rendered in the second and third quarters, 2010, in the amount of $14,000.00
e. Approval of Lauterbach & Amen, LLP's invoices in the total amount of $2.700.00, for services
rendered in June, July and August
f. Approval of Contravisory Investment Management, Inc. fees for the period July 1 through
September 30, 2010 in the amount of $1,938.00
g. Approval of Village of Oak Brook invoices regarding use of FOIA System and 2009 Audit Fee
in the total amount of $1,400
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 4 October 20, 2010
h. Approval of Richard J. Reimer & Associates, LLC invoices dated July 19, August 25 and
September 20, 2010 in the total amount of $863.00
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 Third Quarter 2010
Phil Kosmala of Lowery Asset Consulting, LLC, stated the third quarter was a very good quarter
for both stocks and bonds, the best September in seventy years. He stated it was odd for a very
robust quarter in equities and a rally in the bond market. He also said it was a great July, but a
horrible August. He discussed zero percent Social Security increases and employment goals.
Jeff Grenchik of Lowery Asset Consulting, LLC, referred to the Executive Summary in Section I.
He stated that the portfolio is running at around 39 %, with a goal of 40 %. He discussed Section
III, specifically the Asset Allocation and Manager Returns.
Phil Kosmala brought it to the Board's attention that they are monitoring Harbor International due
to a death of the principal individual, but do not have concerns about a deterioration of
performance at this time.
Jeff Grenchik passed out a hand -out showing that the portfolio is up another 133 basis points as
of October 19, 2010.
b. Approval of Investment Transactions (third quarter, 2010)
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the Investment
Transactions from the Third Quarter, 2010, per pages 7 -16 of Section VI of Lowery Asset
Consulting, LLC Presentation.
ROLL CALL:
Ayes: 5 — Trustee Caspers, Trustee Patel, Vice President Birdsall, President Torlo, Secretary
Feldman
Nays: 0 — None
Absent: 0 — Motion carried
c. Discussion regarding Investment Policy
Finance Director Sharon Dangles entered the meeting and discussed having Lowery evaluate the
Investment Policy since it was last examined in 2005.
Motion by Vice President Birdsall, seconded by Trustee Caspers, to direct Lowery Asset
Consulting to make changes to the current Investment Policy.
ROLL CALL:
Ayes: 5 — Trustee Patel, Vice President Birdsall, President Torlo, Secretary Feldman, Trustee
Caspers
Nays: 0 — None
Absent: 0 — Motion carried
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 2 of 4 October 20, 2010
d. Discussion regarding Fiduciary Liability Insurance Proposal
Finance Director Dangles discussed that the Firefighters Pension Board just approved the
Fiduciary Liability Insurance Proposal offered by Mesirow Financial. She stated that this policy
also covers anything prior that has occurred. Vice President Birdsall inquired as to how it covers
when individuals are named in legal action and she replied that the policy covers all defense
costs, a million dollar aggregate. She stated that the deductible is zero, but could be cost -
effective if there is a deductible.
Discussion ensued regarding liability issues and this proposal.
Motion by Trustee Caspers, seconded by Secretary Feldman, to accept the Fiduciary Liability
Insurance Proposal offered by Mesirow Financial.
ROLL CALL:
Ayes: 5 — Vice President Birdsall, President Torlo, Secretary Feldman, Trustee Caspers,
Trustee Patel
Nays: 0 — None
Absent: 0 — Motion carried
e. Discussion regarding Actuarial Assumptions for 2011
Finance Director Dangles inquired as to what actuarial assumptions the Board wants the actuary
to run. It was discussed that both the investment percentage could be lowered by one - quarter
percent (six and three - quarter percent) and the salary could be lowered by one -half percent
(three and three - quarter percent).
Discussion ensued regarding the possibility of utilizing another actuary because of the service
issues, but that all other providers available either do not handle a fund this size or their fees are
more expensive. It was discussed that Tim Sharpe should be informed as soon as possible of
the date of the next meeting so he can attend.
Motion by Secretary Feldman, seconded by Trustee Patel, to approve the actuarial assumptions
as discussed.
ROLL CALL:
Ayes: 5 — President Torlo, Secretary Feldman, Trustee Caspers, Trustee Patel, Vice President
Birdsall
Nays: 0 — None
Absent: 0 — Motion carried
f. Discussion regarding Application for Line -of -Duty Disability
Vice President Birdsall informed the Board that a police officer has filed an application for line -of-
duty disability, and, to date, all the medical records have been turned over to Inspe, who have
selected three physicians to evaluate the records and the officer. He stated that currently the
records are being reviewed and the three doctors' appointments will be in November. Vice
President Birdsall explained the hearing process.
9. INFORMATION AND UPDATES:
Discussion regarding trustee training and the requirement that all standing trustees need sixteen
hours each year.
a. Scheduling of first quarterly meeting in 2011:
Tentative Wednesday dates of: February 2nd, February 9th, February 16th, February 23rd
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 3 of 4 October 20, 2010
Agreement to set the first quarterly meeting on February 16, 2011, at 7:00 p.m.
10. ADJOURNMENT:
Motion by Trustee Caspers, seconded by Vice President Birdsall, to adjourn the Board of
Trustees of the Police Pension Fund meeting at approximately 8:20 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 4 of 4 October 20, 2010