MINUTES OF THE COUNTRYSIDE POLICE PENSION BOARD

MEETING HELD AT CITY HALL

Thursday, April 23, 2015 at 4:30PM

President Lou Moravecek called the meeting to order at 4:38PM.

Present: Lou Moravecek President

Ken Goluszka Assistant Secretary

Karl Rodey Trustee

Allen Arneson Trustee

Steve Jasinski Trustee

Jessie Barrett Wells Fargo Wachovia Securities

Dan Davis Morgan Stanley Wealth Management

Tom Radja Board Attorney

Cathy Rothbard Pension Clerk

Also Present: Don McGoorty Countryside resident, 5602 Ashland

Gail Paul Acting City of Countryside Treasurer

Absent: Dick Barrett Wells Fargo Wachovia Securities

INVESTMENT UPDATES

Dan Davis of Morgan Stanley Wealth Management gave an update of the investments.

He made a recommendation to the board members to take $125,000 from each of the 4 American Funds and put $500,00.00 into Lord Abbot Alpha Strategy Funds.

Jessie Barrett of Wells Fargo Wachovia Securities gave an update of the investments, along with the McDonnell account. He advised the board members that Pacific Life-Frontier I fixed at 4.2% becomes due on 5/18/15 for another 6 year term for 3%. Jessie Barrett recommended to change it to a 1 year term at 3% instead of being locked in for 6 years at that rate. Jessie recommended withdrawing annually the guaranteed 6% minimum income from TransAmerican Annuity. He also stated the cash on hand in the money market account is $46,133.00 and recommended to invest it in the McDonnell account.

Gail Paul, Acting City of Countryside Treasurer presented the board members with the check from the City’s annual tax levy contribution in the amount of $898,459.00. A discussion was held among the board members regarding the investment recommendations and the tax levy check.

Lou Moravecek made a motion to take the $898,459.00 tax levy contribution check and send it to Morgan Stanley Wealth Management and have them wire transfer $250,000.00 to Countryside Bank for cash flow for pension checks and then also transfer $50,000.00 from all of the American Funds totaling $200,000.00 to Lord Abbott along with $350,000.00 from the tax levy contribution money for a total of $550,000.00 to be invested into Lord Abbott and also invest $300,000.00 into GNMA’s from tax levy check. Ken Goluszka seconded the motion and roll call taken: Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, and Steve Jasinski yes. All yes, no nayes, motion carried unanimously. Lou Moravecek made a motion to switch Pacific Life – Frontier 1 to a 1 year 3% rate, and Karl Rodey seconded. Roll Call taken: Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, and Steve Jasinski yes. All yes, no nayes, motion carried unanimously.

Lou Moravecek made a motion to withdraw annually the 6% guaranteed minimum income from TransAmerica Annuity and Ken Goluszka seconded. Roll Call taken, Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, and Steve Jasinski yes. All yes, no nayes, motion carried unanimously.

Lou Moravecek made a motion to invest the cash on hand at Wells Fargo Wachovia Money Market in the amount of $46,133.00 into the McDonnell fixed income account, and Allen Arneson seconded. Roll Call taken: Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, and Steve Jasinski yes. All yes, no nayes, motion carried unanimously.

APPROVAL OF MINUTES

Lou Moravecek made a motion to waive the reading of the minutes and to accept the minutes from the meeting held on July 31, 2014 with the correction of motion carried to motion failed for election, and Allen Arneson seconded. Roll Call taken: Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, Steve Jasinski abstain. 4 yes, 1 abstain, motion carried. Lou Moravecek made a motion to re-vote and then ratify the election results of January 29, 2015 for active participants and Allen Arneson seconded, motion carried unanimously. Vote to accept Ken Goluszka and Karl Rodey as members of the pension board from the election results, and also to ratify the results. Roll Call taken: Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, and Steve Jasinski abstain, 4 yes, 1 abstain, motion carried.

RECEIPTS AND DISBURSEMENTS

The receipts and disbursements for January, February and March of 2015 were reviewed.

Lou Moravecek made a motion to accept the receipts and disbursements, and Ken Goluszka seconded. Roll Call taken: Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, and Steve Jasinski yes. All yes, no nayes, motion carried unanimously.

BILLS

Tom Radja attorney fees ck#4433 $500.00

Micro Center hard drive and printer ink debit card 99.71

Amazon blank checks and printer ink debit card 178.43

Timber Ridge Lodge for IPPFA conference Rodey/Goluszka debit card 323.26

Lou Moravecek made a motion to accept the above bills, and Karl Rodey seconded. Roll Call taken: Lou Moravecek yes, Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, Steve Jasinski yes. All yes, no nayes, motion carried unanimously.

ELECTION OF RETIRED MEMBERS

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

Retired Participants:

Louis Moravecek 15 votes

Ernest Millsap 1 vote

Thomas Cipriano 1 vote

Steve Jasinski made a motion to accept the election results with Louis Moravecek as the board member, and Ken Goluszka seconded. Roll Call taken: Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, Steve Jasinski yes, and Lou Moravecek abstain. 4 yes, 1 abstain, motion carried.

ELECTION OF BOARD MEMBER POSITIONS

Karl Rodey made a motion for Lou Moravecek to be president of the board and Ken Goluszka seconded. Roll Call taken: Ken Goluszka yes, Karl Rodey yes, Allen Arneson yes, Steve Jasinski yes, and Lou Moravecek abstain. 4 yes, 1 abstain, motion carried.

Lou Moravecek made a motion for Karl Rodey to be secretary and Ken Goluszka seconded.Lou Moravecek yes, Ken Goluszka yes, Karl Rodey abstain, Allen Arneson yes, and Steve Jasinski yes. 4 yes, 1 abstain, motion carried.

Karl Rodey made a motion for Ken Goluszka to be assistant secretary and Lou Moravecek seconded. Roll Call taken: Lou Moravecek yes, Ken Goluszka abstain, Karl Rodey yes, Allen Arneson yes, and Steve Jasinski yes. 4 yes, 1 abstain, motion carried.

NEW BUSINESS

Retiree Frank Maras passed away on February 28, 2015.

Lou Moravecek made a motion to approve Cathy Rothbard as the pension board’s FOIA officer, and Ken Goluszka seconded. Roll Call taken, all yes, no nayes, motion carried.

Board attorney Tom Radja has a new office address as follows: 24 W. 500 Maple Avenue Suite 208 in Naperville IL 60540.

Steve Jasinski was appointed to the pension board by Mayor Krzeminski and approved by members of the City Council to fill Steve Drazner’s remaining term at their meeting held on April 22, 2015 with his term on the board to expire on May 1, 2017.

Caryn Stancik was elected as the City of Countryside Treasurer; her term will begin May 13, 2015.

A discussion was held regarding this year’s audit. Allen Arneson made a motion to solicit bids for this year’s audit, IDOI report, and House Bill 588 with a total of 3 bids plus one from Lauterbach and Amen, and Steve Jasinski seconded. Roll Call taken, all ayes, no nayes, motion carried. A phone vote will be held once the bids are returned.

Board attorney Tom Radja stated due to retiree Timothy Swanson’s plea of guilty to a felony charge, the board needs to set a hearing date for due process regarding this. Swanson’s attorney Dick Pichelski advised him that there may be a change in Swanson’s plea agreement set for May 29, 2015. Attorney Radja will have Mr. Pichelski send him the outcome of May 29, 2015 and then advise board members of same.

Lou Moravecek made a motion to set the hearing date on Timothy Swanson’s pension benefits for June 4, 2015 at 4:30PM and Karl Rodey seconded. Roll Call taken, all ayes, no nayes, motion carried. Attorney Radja will send out notice of hearing to pensioner Swanson and his attorney.

It was discussed that Karl Rodey and Steve Jasinski have to attend required training for board members. The IPPFA MidAmerican Pension Conference is coming up this fall, this is a good conference/training for board members who need their annual training hours.

LITIGATION UPDATES

Attorney Tom Radja advised the board that the next status date for pending litigation is April 30, 2015. The next status date for Cozen and Millsap is in October of 2015.

Lou Moravecek made a motion to adjourn the meeting and Karl Rodey seconded, and it was unanimously agreed to adjourn. The meeting was adjourned at 6:27PM.

Lou Moravecek Karl Rodey

President Secretary