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Home My WebLink About07/24/2018 PPFB MinutesMOUNT PROSPECT POLICE PENSION FUND 50 S. Emerson Street w Mount Prospect, Illinois 60056 /,,�(,,)r,,�)J,,, 11(Utr: )1") 41r1„oo1 /).,aii,(; AJ h „ � , Or,11 ” Z I va1r o r di" �.r,v,, /'aTrw- da°ar r � MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES TUESDAY, JULY 24, 2018 A regular meeting of the Mount Prospect Police Pension Fund Board of Trustees was held on Tuesday, July 24, 2018 at 2:00 pm. at the Mount Prospect Village Hall, 50 S. Emerson Street, Mount Prospect, IL for the purpose of conducting regular business. CALL TO ORDER: Trustee Halachoulis called the meeting to order at 2:02 pm. ROLL CALL: PRESENT: Trustees Tony Halachoulis, Dennis Saviano and Joe Gliner ABSENT: Trustees Tom Hoskinson and David Erb ALSO PRESENT: Tom Sawyer, Sawyer Falduto Asset Management, LLC; Rick Reimer and Steve Knight, Reimer & Dobrovolny PC (R&D), Barbara Utterback, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: April 24, 2018 Regular Meeting Minutes: The Board reviewed the April 24, 2018 regular meeting minutes. A motion was made by Trustee Halachoulis, and seconded by Trustee Saviano to approve the April 24, 2018 regular meeting minutes as written. Motion carried unanimously by voice vote. Semi -Annual Review of Closed Session Meeting Minutes: There were no closed session meeting minutes to review at this time. NEW BUSINESS: Trustee Gliner stated that he invited James DeZellar from Chicago Equity to present his qualifications and experience as an investment professional to the Board. Mr. DeZellar, Managing Director of Chicago Equity Partners, addressed the Board and provided a brochure of his firm. Trustee Halachoulis stated that the Pension Fund is not requesting proposals for investment services at this time, but would keep his company's information on file. TREASURER'S REPORT: Quarterly Financial Report: The Board reviewed the Quarterly Financial Report prepared by Trustee Erb for the quarter ending June 30, 2018. The total market value of the fund as of 6/30/18 is $71,948,205 with an unrealized gain/loss of ($381,737). The report also included a summary of all investment activity for the quarter, and a detailed schedule of investment holdings as of 6/30/18. Approval of the Financial Report was tabled until the next meeting when Treasurer Erb is present. Presentation and Approval of Bills: The Board was presented with the Vendor Disbursements Report for the period April 1, 2018 through June 30, 2018, for a total disbursement of $46,533.93. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to approve payment of the Mount Prospect Police Pension Favid Minutes of Meeting — July 24, 2018 Page 2 of 4 disbursements shown on the Vendor Disbursements Report in the total amount of $46,533.93. Motion carried by roll call vote. AYES: Trustees Halachoulis, Gliner and Saviano NAYS: None ABSENT: Trustees Erb and Hoskinson Additional Bills, if'any: There were no additional bills presented. INVESTMENT REPORTS — SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly Investment Performance Report: Tom Sawyer presented the Quarterly Investment Performance Report for the Schwab Investment Account for the quarter ending June 30, 2018. The ending market value of the Schwab investment portfolio as of June 30, 2018 is $47,952,682. The total account return net of fees for the year is 3.00%, for an investment return of $1,431,276. Mr. Sawyer discussed the long-term performance of the portfolio, Market Commentary, individual fund performance and Transaction Ledger Report, Mr. Sawyer stated that there were some manager changes this quarter. The Homestead Small Company Stock Fund was replaced with the Goldman Sachs Small Cap Fund, and the Hennessey Focus Fund had a name change and was replaced with the Victory Sycamore Fund. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to accept the Quarterly Investment Performance Report as presented. Motion carried by voice vote. Review/Update Investment Policy: There were no recommended changes to the Investment Policy at this time. COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: The Board noted that all 2018 Affidavits of Continued Eligibility have been received by L&A, and the originals were given to the Board for recordkeeping. Active Member File Maintenance: The Board noted that L&A has prepared Active Member File Maintenance letters for distribution to all active members requesting any additional pension file documents as required by the ID01. An update will be provided at the next meeting. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM THE PENSION FUND: There were no applications for membership or withdrawals from the Fund at this time. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: The Board noted that they are awaiting the retirement application from former Chief, Tim Janowick. This will be addressed at the next meeting. Approve Regular Retirement Benefits — David Zboril: The Board reviewed the service retirement benefit calculation for David Zboril prepared by the Village of Mount Prospect. Commander Zboril had an entry date of July 7, 1995, retirement date of July 6, 2018, effective date of pension of July 7, 2018, with 23 years of creditable service. His benefit was calculated at 57.5% of his applicable salary of $138,333.85, resulting in an annual benefit of $79,541.96 and a monthly benefit of $6,628.50. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to approve the service retirement benefit for David Zboril as calculated by the Village of Mount Prospect. Motion carried by roll call vote. Mount Prospect Police Pension Fund Minutes of Meeting —July 24, 2018 Page 3 of 4 AYES: Trustees Halachoulis, Gliner, Erb, Saviano and Hoskinson NAYS: None ABSENT Trustees Erb and Hoskinson Approve Regular Retirement Benefits - Michael Nelson: The Board reviewed the service retirement benefit calculation for Michael Nelson prepared by the Village of Mount Prospect. Officer Nelson had an entry date of June 12, 1989, retirement date of June 11, 2018, effective date of pension of June 12, 2018, with 29 years of creditable service. His benefit was calculated at 72.5% of his applicable salary of $104,132.00 resulting in an annual benefit of $75,495.70 and a monthly benefit of $6,291.31. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to approve the service retirement benefit for Michael Nelson as calculated by the Village of Mount Prospect. Motion carried by roll call vote. AYES: Trustees Halachoulis, Gliner, Erb, Saviano and Hoskinson NAYS: None ABSENT: Trustees Erb and Hoskinson Approve Regular Retirement Benefits — Mark Bonner: The Board reviewed the service retirement benefit calculation for Mark Bonner prepared by the Village of Mount Prospect. Sergeant Bonner had an entry date of July 7, 1989, retirement date of July 6, 2018, effective date of pension of July 7, 2018, with 29 years of creditable service. His benefit was calculated at 72.5% of his applicable salary of $116,531.26 resulting in an annual benefit of $84,485.16 and a monthly benefit of $7,040.43. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to approve the service retirement benefit for Mark Bonner as calculated by the Village of Mount Prospect. Motion carried by roll call vote. AYES: Trustees Halachoulis, Gliner, Erb, Saviano and Hoskinson NAYS: None ABSENT: Trustees Erb and Hoskinson OLD BUSINESS: IDOI Annual Statement: The Board was presented with the updated interrogatories required by the Illinois Department of Insurance, effective June 1, 2018. The Board confirmed that the annual statement for the year ended 12/31/17 was filed prior to the June 30, 2018 deadline. Discussion/Possible Approval- Updated Pension Fund Rules and Regulations: The Board reviewed the proposed revisions to the Pension Fund Rules and Regulations, prepared by R&D. Review and formal approval of the updated Rules and Regulations was tabled to the next meeting when all Trustees are present. Discussion/Possible Action. Lauterbach & Amen True Cost Calculation Eh&4gement Letter: The Board reviewed the Lauterbach & Amen engagement letter for the preparation of any requested True Cost Calculations for members. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to authorize the president to sign the revised engagement letter for PSA Services, to include the true cost calculations, and additional language stating Lauterbach & Amen maintains professional liability insurance. Motion carried by voice vote. Discussion/Possible Action on Pension Fund File Security This item was tabled for discussion at the next meeting. Mount Prospect Police Pension Fund Minutes of Meeting — July 24, 2018 Page 4of4 NEW BUSINESS: Board Officer Elections — President, Vice President, Secretary & Assistant Secretary: The Board discussed the current slate of Board Officers. Designation of Board officers was tabled until the next meeting when all trustees are present. The Board stated that Trustee Halachoulis will remain the OMA designee. It was determined that Trustee Hoskinson is the current FOIA Officer, but he is now retired and does not have access to all records on a daily basis. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to appoint Trustee Dave Erb as the interim FOIA Officer until the next meeting when a designated FOIA Officer can be determined. Motion carried by voice vote. Review/Approve - Actuarial Valuation: The Board stated they have not yet received the Actuarial Valuation. Discussion and approval of the actuarial valuation and tax levy request is tabled until the next meeting. TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and were reminded to send all training certificates to L&A for recordkeeping. Trustee training opportunities were also discussed. ATTORNEY'S REPORT: Legal Update: Mr. Reimer introduced a new attorney with his firm, Steve Knight, and reviewed his firm's quarterly Legal and Legislative Update newsletter. CLOSED SESSION, IF NEEDED: There were no items to discuss in closed session. ADJOURNMENT: The meeting was adjourned at 2:51 pm. The next regular meeting of the Mognt Prospect Police Pension Fund is scheduled for October 23, 2018. Respectfully sublifittpd,�°" � Tony Halach6UHS, President liner, Secretary C; ,, �� // r .11111111111-- . Date Approved by Board Minutes prepared by Barb Utterback, Pension Services Administrator, Lauterbach & Amen, LLP