MINUTES OF THE COUNTRYSIDE POLICE PENSION BOARD
MEETING HELD AT CITY HALL
Tuesday, April 12, 2011

President Lou Moravecek called the meeting to order at 6:05PM.

Present:

Lou Moravecek President
John Mikel Vice-President
Gail Paul Assistant Secretary
Steve Drazner Trustee
Jesse Barrett Wells Fargo Wachovia Securities
Tom Radja Board Attorney
Cathy Rothbard Clerk
Bob Conrad City Mayor
Absent: Ken Goluszka Secretary
Dick Barrett Wells Fargo Wachovia Securities
Dan Davis Morgan Stanley Smith-Barney

Lou Moravecek, President made a motion to waive the reading of the minutes from the January 11, 2011.

Gail Paul made a motion to not accept the minutes of the January 2011 meeting due to not being able to review them prior to the meeting as they were just distributed. Steve Drazner seconded, motion carried unanimously to defer accepting the minutes until the next meeting. Gail Paul will review them and advise Clerk Cathy Rothbard if any adjustments need to be made.

RECEIPTS AND DISBURSEMENTS

John Mikel read the receipts and disbursements for December 2010 thru February of 2011.

Lou Moravecek made a motion to accept the receipts and disbursements and John Mikel seconded, motion carried unanimously.

BILLS

1. NIU Outreach – training Ck# 3917 $500.00

2. Cathy Rothbard – computer supplies Ck#3927 $155.02

RESOLUTIONS

2011-002-R Smith-Barney GNMA Pool #004572M due 11/20/39 at 4.500% $344,814.04

2011-003-R Wells Fargo Wachovia GNMA Pool #3998 due 6/20/37 at 6/000% 230,087.90

2011-004-R Wells Fargo Wachovia GNMA Pool #4521 due 8/20/39 at 5.500% 130,706.06

Lou Moravecek made a motion to accept the resolutions, John seconded, motion carried unanimously.

OLD BUSINESS

All board members have filed their Statement of Economic Interest online with the exception of Steve Drazner newly appointed to the pension board. Clerk Rothbard will set up an account for Steve online so he can complete his.

Tom Radja gave all board members a copy of his firm’s legal opinion regarding the longevity benefit upon retirement and whether it should be properly considered salary when determining the pension benefit to which a retiree is entitled. He stated in summary it is his opinion that the $850.00 is pensionable salary as computed by the side letter of understanding in the union contract.

(see attached opinion letter) He also stated bonus by case law cannot fit within this scenario.

Gary Collins, Tom’s business partner is in the process of requesting a Department of Insurance response. Letter from another municipality that gave an opposite opinion to what the Dept of Insurance gave this board.

NEW BUSINESS

Tom Radja stated he has formed a partnership with Gary Collins, firm now named Collins and Radja, Attorneys at Law. They represent 65 pension funds in the State of Illinois.

In case of any lawsuits against the board or the pension fund, the members asked Tom Radja if the fund should be insured, and would an individual board member be able to be named in a lawsuit.Tom stated that if an individual on the pension board was sued for activities regarding the pension fund, that each individual is indemnified by the pension fund. Steve Drazner asked if the pension fund should purchase insurance, and Lou Moravecek asked if the insurance policy would cover legal fees. Tom Radja said he would get names from three insurance companies and have them speak to the board members at a future meeting.

The board also discussed that the Dick Barrett/Jesse Barrett of Wells Fargo Wachovia and Dan Davis of Morgan Stanley Smith-Barney send a summary of the pension funds investments (can be emailed, mailed, or faxed) approximately 2 weeks but not later than 1 week prior to the pension meeting. This will give the board members ample time to review the investment updates prior to the meeting. Also, Clerk Cathy Rothbard will give board members 1 week prior to the pension meeting all agenda information. Clerk Cathy Rothbard will also make sure the agenda, prior meeting minutes, and meeting dates are posted on the City of Countryside website.

ELECTIONS

Pursuant to Illinois Pension Law an election was held to select participants for the board. Below are the results of the ballot/election:

Active Participants Retirees

John Mikel 14 votes
Lou Moravecek 13 votes
Ken Goluszka 14 votes
Lee Fugett 1 vote
John Andree 2 votes
Brian Cozen 1 vote
Kreg Floyd 1 vote

Lou Moravecek made a motion to approve the election results, John Mikel seconded, roll call all ayes, no nayes, Ken Goluszka absent.
John Mikel, Ken Goluszka, and Lou Moravecek will remain on the pension board for another 2 years.The Mayor re-appointed on January 26, 2011 City Administrator Gail Paul to the pension board, her term to expire on May 1, 2012 and he also appointed Finance Director Steve Drazner to the pension board, his term to expire on May 1, 2011.

Nominations for board positions:

Gail Paul nominated Lou Moravecek for President, John Mikel seconded. Roll Call: Lou abstained, Gail Paul, John Mikel, Steve Drazner all ayes, no nays, Ken Goluszka absent.

John Mikel nominated Steve Drazner for Vice-President, Lou Moravecek seconded. Roll Call:Steve Drazner abstained, Gail Paul, Lou Moravecek, John Mikel all ayes, no nays, Ken Goluszka absent.

Lou Moravecek nominated John Mikel for secretary, Steve Drazner seconded. Roll Call: John Mikel abstained, Gail Paul, Lou Moravecek, Steve Drazner all ayes, no nays, Ken Goluszka absent.

Gail Paul nominated Ken Goluszka for Assistant Secretary, John Mikel seconded. Roll Call: Gail Paul, John Mikel, Steve Drazner, Lou Moravecek, all ayes, no nays, Ken Goluszka absent.

The board members are:

Lou Moravecek President
Steve Drazner Vice-President
John Mikel Secretary
Ken Goluszka Assistant Secretary
Gail Paul Trustee

INVESTMENT UPDATES

Jesse Barrett of Wells Fargo Wachovia gave the board an update on the fund’s investments.

Currently the board can investment 45% in equities, but as of July 1^st, 2011 that goes up to 50%. Jesse Barrett recommended taking $385,000.00 from Fund Source at Wachovia and putting it into the money market fund until July 1, 2011 and then reinvesting it back into Fund Source. He also suggested that Dan Davis Smith-Barney take $385,000.00 from American Funds, put it into the money market fund until July 1, 2011 and then reinvest it back into American Funds. Lou talked to Dan Davis and said he stated that Dept. of Insurance would most likely Look the other way if the board was over the 45% (currently it is at 49.87%). Gail Paul suggested that the monies are invested into a 3 month certificate of deposit, CDARS Program, or a short term bond. Lou Moravecek made a motion to withdraw $385,000.00 from Smith-Barney American Funds and $385,000.00 from Wachovia Fund Source and each will be deposited into their respective money market funds and then reinvested back into Fund Source and American Funds on July 1, 2011, Steve Drazner seconded, roll call:

Lou Moravecek, Steve Drazner, Gail Paul, John Mikel all ayes, no nays, Ken Goluszka absent.

Dan Davis was unable to attend the meeting, but spoke with President Lou Moravecek on the phone and emailed his investment update and recommendations.

Per Dan Davis’s recommendation to purchase a GNMA in the amount of $155,625.00 at Morgan Stanley Smith Barney, Lou Moravecek made a motion to purchase, John Mikel seconded. Roll Call: Lou Moravecek, John Mikel, Gail Paul, Steve Drazner, all ayes, no nayes, Ken Goluszka absent.

Lou Moravecek made a motion to wire transfer $180,000.00 from the Smith-Barney Money Market to the State Bank of Countryside Money Market account to cover retirees pensions, John Mikel seconded. Roll Call: Lou Moravecek, John Mikel, Gail Paul, Steve Drazner, all ayes, no nayes, Ken Goluszka absent.

CORRESPONDENCE

Fraternal Order of Police letter regarding the General Assembly create a Disabled Peace Officer Recognition Day.

ADJOURNMENT

Lou Moravecek made a motion to adjourn, Gail Paul seconded, motion carried unanimously and the meeting was adjourned at 8:34PM.

_______________________ _________________________

Lou Moravecek, President John Mikel, Secretary