MINUTES OF THE COUNTRYSIDE POLICE PENSION BOARD

MEETING HELD AT CITY HALL

Tuesday, July 30, 2013

President Lou Moravecek called the meeting to order at 5:57PM.

Present:

Lou Moravecek President

Steve Drazner Vice-President

John Mikel Secretary

Ken Goluszka Assistant Secretary

Gail Paul Trustee

Cathy Rothbard Clerk

Dick Barrett Wells Fargo Wachovia Securities

Tom Radja Board Attorney

Dan Davis Morgan Stanley Wealth Management

Jessie Barrett Wells Fargo Wachovia Securities

Also Present:

Paul Lanzi Countryside Patrolman

Jim Jasinski City of Countryside Alderman

Don McGoorty Countryside resident, 5602 Ashland

APPLICATION FOR BENEFITS

Patrol Officer Paul Lanzi applied for credible time transfer from his employment at Brookfield Police Department to Countryside Police, credible years of service are 12 years and 4 months.

Gail Paul made a motion to accept his application and hire an actuary to calculate the figures,

Lou Moravecek seconded. Roll Call taken: Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul, all ayes, no nayes, motion carried. Steve Drazner recommended using

Sandor Goldstein for the actuarial valuation. Lou Moravecek made a motion to hire Sandor Goldstein with a cap of $500.00 for the actuarial costs, John Mikel seconded. Roll Call taken: Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul, all ayes, no nayes, motion carried. Attorney Tom Radja will send a letter to Brookfield Police requesting how much time and money is to be transferred.

INVESTMENT UPDATES

Jessie Barrett of Wells Fargo Wachovia gave the board members an update of their investments.

He has $156,000.00 cash available and recommends purchasing a GNMA. A discussion was held and money is needed to cover retiree pensions. Lou Moravecek made a motion to transfer $156,000.00 from Wells Fargo Wachovia Money Market to the State Bank of Countryside Money Market account to cover retiree pensions, and Steve Drazner seconded. Roll Call taken: Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul all ayes, no nayes, motion carried. Dan Davis of Morgan Stanley gave the board members an update of their investments.

Dan Davis recommended the board purchase a GNMA for approximately $100,000.00.

Lou Moravecek made a motion to purchase a GNMA, Steve Drazner seconded. Roll Call Taken:

Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul, all ayes, no nayes, motion carried.

Lou Moravecek made a motion to waive the reading of the minutes from the April 25, 2013 meeting and to also approve them. John Mikel seconded, all ayes, no nayes, motion carried unanimously.

RECEIPTS AND DISBURSEMENTS

John Mikel read the receipts and disbursements for April, May, and June of 2013. Lou Moravecek made a motion to accept the receipts and disbursements, Ken Goluszka seconded. Roll Call taken, Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul, all ayes no nayes, motion carried unanimously.

BILLS

Tom Radja – attorney fees Ck#4220 $1,580.25

IL State Treasurer – Annual IDOI filing fee Ck#4221 3.138.23

Mike Vesconte – refund check due to insurance changes Ck#4222 1,064.33

Cathy Rothbard-reimbursement for office supplies/training Ck#4231 115.77

Cathy Rothbard -reimbursement for fed ex of audit info Ck#4242 23.25

NIU outreach for IPPFA 2013 Midwest Pension Conference/Moravecek Debit Card 295.00

Staples – back up hard drive for clerk’s computer Debit Card 75.94

John Mikel made a motion to accept the above bills, Lou Moravecek seconded, Roll Call taken: Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul all ayes, no nayes, motion carried unanimously.

RESOLUTIONS

2013-001-R Wells Fargo GNMA Pool#4695 due 5/20/40 at 4.000% $131,913.32

2013-002-R Morgan Stanley FNMA Pool#995049 due 2/1/38 at 6.000% $474,513.20

Lou Moravecek made a motion to ratify the above resolutions, Ken Goluszka seconded. Roll Call taken: Lou Moravecek, Ken Goluszka, Gail Paul, John Mikel, Steve Drazner, all ayes, no nayes, motion carried unanimously. Contact Dan Davis as to why it was changed from a GNMA to a FNMA and what the difference is.

OLD BUSINESS

Investment Policy will be updated and voted on at the next meeting.

ELECTION OF BOARD MEMBERS

John Mikel made a motion and nominated Lou Moravecek for President of the Pension Fund Board, Steve Drazner seconded all ayes no nayes, motion carried unanimously.

ELECTIONS CONTINUED

Lou Moravecek made a motion and nominated John Mikel for secretary of the Pension Fund Board, Ken Goluszka seconded, all ayes, no nayes, motion carried unanimously.

Lou Moravecek made a motion and nominated Steve Drazner for Vice-President of the Pension Fund Board, Ken Goluszka seconded, all ayes, no nayes, motion carried unanimously.

Lou Moravecek nominated Ken Goluszka for Assistant Secretary of the Pension Fund Board, Steve Drazner seconded, all ayes, no nayes, motion carried unanimously.

Steve Drazner was reappointed to the board by the Mayor and his term expires on May 1, 2015.

NEW BUSINESS

The board members reviewed the draft copy of the annual audit conducted by Lauterbach and Amen. The final copy will be completed with Attorney Tom Radja’s letter regarding litigation.

Lou Moravecek made a motion to approve the draft of the audit for fiscal year ending April, 2013 contingent on Attorney Radja’s response regarding the litigation section, Steve Drazner seconded. Roll Call taken: Lou Moravecek, Steve Drazner, John Mikel, Gail Paul, Ken Goluszka, all ayes, no nayes, motion carried unanimously.

The CD at State Bank matured and it was unanimously agreed upon by the board to close it out and deposit the $37,508.22 into the State Bank Money Market to cover retiree pensions, due to CD interest rates being so low.

A discussion was held due to Clerk Rothbard retiring from the Countryside Police Department, regarding having access to the pension mail and making copies for the pension fund. It was agreed that there will be a mailbox in the police department radio room for pension mail and Clerk Rothbard can come to the police window 24hrs to retrieve the pension mail. Gail Paul made a motion to purchase a laser printer not to exceed $1,000.00 for Clerk Rothbard to make opies, Lou Moravecek seconded. Roll Call taken: Lou Moravecek, Gail Paul, John Mikel, Ken Goluszka, Steve Drazner, all ayes, no nayes, motion carried unanimously. Lou Moravecek will purchase the printer with his pension debit card.

Lou Moravecek made a motion to go into executive session to discuss litigation, John Mikel seconded, motion carried unanimously. The board adjourned the executive session and reconvened into the regular meeting.

LITIGATION UPDATES

Attorney Tom Radja accompanied Lou Moravecek to his deposition in the Cetwinski matter. The City of Countryside VS Countryside Police Pension Fund is in the process of exchanging discovery. Tom stated he did see that Gail Paul assisted in the answering of the interrogatories which is because she wears multiple hats. He stated she may want to be careful in how she participates in voting if there are any votes by this board on the litigation because she is assisting the City in responding to interrogatories He suggested if there is a vote as to how the litigation is handled, to consider abstaining from the voting. This is so there is not a question by a member of the fund, beneficiary or participate questioning if you are breaching your fiduciary duties by not exclusively looking out for the rights of this fund only. Steve Drazner stated that it is for our own protection. Tom stated yes, but you can do what you want, this is my recommendation. He has dealt with Lou Moravecek so far in responding to interrogatories and records to produce, so he is recommending that the board entertain a motion to make the President of the board the client representative for requests to produce and for interrogatories. Right now we are still in the process of responding to written interrogatories and requests to produce. The next step will be an oral discovery which is just depositions. The court has said that written discoveries are to be concluded by August 7^th, with a status date on August 14, 2013. Tom said the court will probably set a deadline date for oral discoveries at the status date. Once that is concluded, then there will be motions for summary judgements. The board will have to decide as a fund who will be deposed to get the facts necessary to establish our defense. He needs to know who to communicate with on the board and that is why he is suggesting the President, since it has been working so far but that it is up to the board. He will still continue to send copies of what has been done regarding the litigation to all the board members. Gail Paul questioned why a motion was needed for a client representative, as the city attorneys just go to Gail. Tom stated he wants to make sure everyone is on the same page as to how the board is handling this. He feels that the city attorneys should also go to City Councils and ask who they want them to talk to for purposes of litigation, so later on when a council member says why was this done this way, they can answer that. Lots of times large firms will do that, especially if you have a multi-person client, and he thinks that is the appropriate thing to do, but again this is just his recommendation.

It is the board’s decision. John Mikel made a motion to approve Lou Moravecek as the board president to act as the client representative for the Police Pension Fund Board for purposes of litigation, and Ken Goluszka seconded. Roll Call taken: Lou Moravecek, Ken Goluszka, John Mikel all ayes, Gail Paul and Steve Drazner abstained, motion carried.

Lou Moravecek made a motion to adjourn the meeting and Ken Goluszka seconded, and it was unanimously agreed to adjourn. The meeting was adjourned at 7:51PM.

Lou Moravecek John Mikel

President Secret