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Home My WebLink About01/23/2018 PPFB MinutesMOUNT PROSPECT POLICE PENSION FUND 50 S. Emerson Street n Mount Prospect, Illinois 60056 TonyHalaohoulis Tom Hoskinson Dave Erb Joe Gliner DennisSaviano President Seeretraty °Trustee Trustee Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES TUESDAY, JANUARY 23, 2018 A regular meeting of the Mount Prospect Police Pension Fund Board of Trustees was held on Tuesday, January 23, 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 2:01 pm. ROLL CALL: PRESENT: Trustees Tony Halachoulis, David Erb, Dennis Saviano, Tom Hoskinson and Joe Gliner (arrived at 2: 05 pm) ABSENT: None ALSO PRESENT: Tom Sawyer, Sawyer Falduto Asset Management, LLC; Rick Reimer, Reimer Dobrovolny & Karlson, LLC; Brian Blocovich, Chicago Clearing Company; Alex Michael, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: October 24, 2017 Regular Meeting Minutes: The Board reviewed the October 24, 2017 regular meeting minutes. A motion was made by Trustee Saviano and seconded by Trustee Erb to approve the October 24, 2017 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 for review. TREASURER'S REPORT: Quarterly Financial Report: The Board reviewed the Quarterly Financial Report prepared by Trustee Erb for the quarter ending December 31, 2017. The total market value of the fund as of December 31, 2017 is $71.1 million with an unrealized loss of $39,328. The report also included a summary of all investment activity for the quarter, and a detailed schedule of investment holdings as of December 31, 2017. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to accept the Quarterly Financial Report as prepared by Trustee Erb. Motion carried unanimously by voice vote. Trustee Gliner joined the meeting at 2: 05 pm. Presentation and Approval of Bills: The Board was presented with the Vendor Disbursements Report for the period October 1, 2017 through December 31, 2017, for a total disbursement of $36,055.21. A motion was made by Trustee Halachoulis and seconded by Trustee Hoskinson to approve the disbursement shown on the Vendor Disbursements Report as presented. Motion carried by roll call vote. Mount Prospect Police Pension Fund Minutes of Meeting — January 23, 2018 Page 2 of 4 AYES: Trustees Halachoulis, Saviano, Erb, Gliner and Hoskinson NAYS: None ABSENT: None Additional Bills, if any: There were no additional bills presented. INVESTMENT REPORTS — SAWYER FALDUTO ASSET MANAGEMENT: Quarterly Investment Performance Report: Tom Sawyer presented the Quarterly Investment Performance Report for the quarter ending December 31, 2017. The ending market value of the investment portfolio as of December 31, 2017 is $46,556,296. The total account return net of fees is 5.74% for the quarter, for an investment return of $2,564,699. Mr. Sawyer discussed the Growth Versus Value Performance, Market Commentary, Equity and Fixed Income Portfolios, Small Cap Stocks and Transaction Ledger Report. All questions were answered by Mr. Sawyer. A motion was made by Trustee Halachoulis and seconded by Trustee Hoskinson to accept the Quarterly Invest Performance Report as presented. Motion carried unanimously by voice vote. Review/Update Investment Policy: There were no recommended changes to the Investment Policy at this time. NEW BUSINESS: Presentation/Possible Approval — Chicago Clearing Corporation: Brian Blockovich presented an overview of services provided by CCC. CCC Handles Class Action Claims involving securities, corporate bonds, mutual funds or other investment vehicles that are owned by many Police and Fire Pension Funds. A motion was made by Trustee Erb and seconded by Trustee Saviano to hire CCC, with 15% being collected by CCC if any settlement money is received. Motion carried by roll call vote. AYES: Trustees Halachoulis, Saviano, Erb, Gliner and Hoskinson NAYS: None ABSENT: None Mr. Blockovich left the meeting at 2:51 pm. COMMUNICATIONS AND REPORTS: Affidavits of Eligibility: The Board noted that Affidavits of Continued Eligibility were mailed in January with a due date of February 6, 2018. A status update will be provided at the next scheduled meeting. Statements of Economic Interest: The Board noted that the List of Filers must be submitted to the County by the Village by February 1, 2018. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2018. 2018 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for reimbursement increased to $0.545 per mile effective January 1, 2018. 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: There were no applications for retirement or disability benefits from the Fund at this time. Mount Prospect Police Pension Fund Minutes of Meeting — January 23, 2018 Page 3 of 4 OLD BUSINESS: Discussion/Possible Action Lauterbach & Amen True Cost Calculation Engagement Letter: The Board reviewed the Lauterbach & Amen true cost engagement letter. Further discussion will be held at the next meeting Discussion/Possible Action on Pension Fund File Security: The Board discussed purchasing a file cabinet for the Fund. Trustee Erb will research pricing for one, four drawer lateral file cabinet. Further discussion will be held at the next meeting. Approve Transfer of Service — Joseph Garris: Mr. Garris will proceed with a reduced service credit with Mount Prospect Police. The Bensenville Police Pension Fund issued payment to the Mount Prospect Police Pension Fund in the amount of $214,251.62. The total represents Officer Garris's contributions from the Bensenville Police Pension Fund plus 6% interest and a required match by the Bensenville Police Pension Fund. All service has been transferred. A motion was made by Trustee Halachoulis and seconded by Trustee Hoskinson to accept the transfer of service for Joseph Garris. Motion carried by roll call vote. AYES: Trustees Halachoulis, Saviano, Erb, Gliner and Hoskinson NAYS: None ABSENT: None NEW BUSINESS - CONTINUED: Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2018 Cost of Living Adjustments as calculated by the Village of Mount Prospect. A motion was made by Trustee Halachoulis and seconded by Trustee Hoskinson to approve the 2018 Cost of Living Adjustments as required by statute and calculated by the village. Motion carried by roll call vote. AYES: Trustees Halachoulis, Saviano, Erb, Gliner and Hoskinson NAYS: None ABSENT: None Review Trustee Term Expirations and Election Procedures: The Board noted that the retired member term currently held by Trustee Halachoulis is expiring in April 2018. Trustee Halachoulis expressed his wish to remain on the Board if nominated. L&A will conduct an election on behalf of the Pension Fund for the retired member Trustee position. IDOI Annual Statement: The Board noted that completion of the IDOI Annual Statement is currently in process. Updates will be provided to the Board as they become available. TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and were reminded to send all training certificates to L&A for recordkeeping. ATTORNEY'S REPORT: Legal Update: Mr. Reimer reviewed his firm's fourth quarter Legal and Legislative Update newsletter. All questions were answered by Mr. Reimer. CLOSED SESSION, IF NEEDED: There were no items to discuss in closed session. QUARTERLY FINANCIAL REPORT — CONTINUED: Trustee Erb informed the Board that the Fund will need $500,000 to cover operating expenses through March 1, 2018. A motion was made by Trustee Erb and seconded by Trustee Halachoulis to rebalance the portfolio to get under 65% in equities Mount Prospect Police Pension Fund Minutes of Meeting — January 23, 2018 Page 4 of 4 and wiring $500,000 from the Schwab account to the Police Pension Fund's Chase checking account. Motion carried by roll call vote. AYES: Trustees Halachoulis, Saviano, Erb, Gliner and Hoskinson NAYS: None ABSENT: None ADJOURNMENT: A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to adjourn the meeting at 3:21 pm. Motion carried unanimously by voice vote. The next regular meeting of the Mount Prospect Police Pension Fund is April 20, 2018. Respectfully submi ed, SPY te ml611ve la"lacy �u is.� President Date Approved by Board Tor, l lb kinson, Secretary Minutes prepared by Alex Michael, Pension Services Administrator, Lauterbach & Amen, LLP