MINUTES OF THE COUNTRYSIDE POLICE PENSION BOARD
MEETING HELD AT CITY HALL
Tuesday, January 11, 2011

President Lou Moravecek called the meeting to order at 6:06PM.

Present:

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

Absent: Steve Jasinski Trustee/City Treasurer

Lou Moravecek, President made a motion to waive the reading of the minutes from the October 19, 2010 meeting. Gail Paul seconded, motion carried unanimously. Lou Moravecek made a motion to accept the minutes, John Mikel seconded, motion carried unanimously.

RECEIPTS AND DISBURSEMENTS

Ken Goluszka read the receipts and disbursements for October and November of 2010.

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

BILLS

1. Tom Radja attorney fees Ck#3868 $806.25

2. Timothy Sharpe Actuarial Fee Ck#3913 $2,000.00

3. IPPFA Annual Dues Ck#3914 $775.00

4. Lauterbach & Amen audit and IDOI audit fee Ck#3915 $6,000.00

5. Tom Radja attorney fees/1^st quarter Ck#3916 $587.50

Lou Moravecek made a motion to accept the bills, Ken Goluszka seconded, motion carried unanimously, all ayes, no nayes.

RESOLUTIONS

2010-016-R Wells Fargo Wachovia GNMA Pool #4802 due 9/20/40 at 5.000% $77,297.45

2010-017-R Wells Fargo Wachovia FNMA Pool#763755 due 2/1/34 at 6.500% $83,313.71

2010-018-R Wells Fargo Wachovia FNMA Pool#257101 due 2/1/28 at 5/000% $118,718.50

2010-019-R Wells Fargo Wachovia Pacific Life Fixed Annuity at 3.3% for 7 yrs. $500,000.00

2011-001-R Inland Bank Certificate of Deposit at .85% for 12 months $36,646.03

Lou Moravecek made a motion to accept the above resolutions, Gail Paul seconded, motion carried unanimously, all ayes, no nayes.

OLD BUSINESS

Mike Vesconte’s retirement pension calculations (previously voted on and approved) to be read into minutes. Sgt. Michael Vesconte retired from the police department effective November 3, 2010. His pension calculations are as follows:

Annual Salary $90,163.00

9 paid holidays $3,121.20 (using a daily rate of $346.80)

Total salary $93,284.20

He receives 60% of his salary for his pension amount of $55,970.52 annually.

His monthly gross pension amount is $4,664.21.

His first pension check for the end of November 2010 is prorated to $4,353.26.

Lou Moravecek made a motion to accept the calculations and John Mikel seconded, motion carried unanimously, all ayes, no nayes.

NEW BUSINESS

The City of Countryside Finance Director Steve Drazner prepared a certification and approval of retroactive pension contributions due from Ofc. Kelly Kalker. This letter was accepted and signed by Ofc. Kalker and President Lou Moravecek. The balance of $5,867.16 must be paid in full to The Police Pension Fund for City of Countryside prior to the application of a permanent pension benefit by Ofc. Kelly Kalker.

Lou Moravecek made a motion to accept the above amount, Ken Goluszka seconded, motion carried unanimously, all ayes, no nayes.

The Municipal Money Market account at State Bank of Countryside is in effect and the first direct deposit checks were issued for November retiree/widow pensions.

The Pension Fund received the tax levy contribution check from the City of Countryside in the amount of $817,478.00. The money was deposited into Smith-Barney Vantage Checking account for investments and to cover retiree’s pension amounts. Lou Moravecek made a motion to transfer $250,000.00 into the State Bank of Countryside account from the Smith-Barney Vantage account to cover the direct deposit pension retiree checks, Gail Paul seconded, roll call all ayes, no nayes, Steve Jasinski absent. Motion carried unanimously.

A copy of the actuarial prepared by Timothy Sharpe was given to all board members.

A letter from Office of Cook County Clerk David Orr was reviewed regarding submitting your list of filers for Statements of Economic Interest Online.

Tom Radja, pension attorney received a response from IDOI regarding their opinion on the longevity benefit. He reviewed it with board members. IDOI opinion states that the $850.00 should be a one time addition to their salary amount, and not $850.00 multiplied per pay period. Gail Paul requested Tom Radja give the board members his legal opinion. Lou Moravecek made a motion that Tom Radja investigate the longevity benefit and give his legal opinion at the next board meeting, John Mikel seconded, motion carried unanimously.

Gail Paul asked about the pension board member’s fiduciary liability. Attorney Radja stated that the board members had no individual liability for a board action. Only if gross negligence andmalice was involved, then the individual could be liable. If individual board members are named in a lawsuit he would have them dismissed. Mr. Radja said he does it all the time and he would obtain an agreed order from the court to dismiss individual board members. Mr. Radja explained that an administrative review is the only way to file an objection to a board member action and this review is a short, not drawn out procedure.

INVESTMENT UPDATES

Dan Davis of Morgan Stanley Smith-Barney gave the board members an update on the investments/2010 Account review. Dan Davis made a recommendation that the pension fund purchase a GNMA in the amount of $408,000 with a yield to maturity 3.610%, average life 6.32 years, Gail Paul requested to look for one with a shorter rate. Roll Call was taken all nayes on the above investment. It was unanimously agreed upon for Dan to invest into a GNMA with a shorter rate. He will investigate and advise the board.

Jesse Barrett of Wells Fargo Wachovia Securities gave the board members an update on the investments. Jesse Barrett stated he would like to purchase a GNMA in the amount of $230,088.00 for 3 years with an average life return of 2.195% with money in the Money Market account. Lou Moravecek made a motion to purchase the GNMA and Gail Paul seconded, motion carried unanimously.

CORRESPONDENCE

1. Newsletter from Wachovia Securities

2. 23^rd Annual Police, Fire, EMS & Municipal employee Pension & Benefits Seminar February 6-8 in Las Vegas.

3. IPPFA Spring Conference 2011.

ADJOURNMENT

Lou Moravecek made a motion to adjourn, Gail Paul seconded, motion carried unanimously and the meeting was adjourned at 7:53PM.

_____________________ _________________________

Lou Moravecek, President Ken Goluszka, Secretary