PARK RIDGE POLICE PENSION FUND
BOARD OF TRUSTEES
APRIL 24, 2012 REGULAR QUARTERLY MEETING
MINUTES

Pursuant to public notice, a regular quarterly meeting of the Board of Trustees of the Park Ridge Police Pension Fund was held on Tuesday, April 24, 2012 at 10:00 a.m. at City Hall, 505 Butler Place, Park Ridge, Illinois. 

Call to Order:  President Laura Kappler called the meeting to order at 10:07 a.m. Trustee Kappler took a roll call.  Present were trustees Duane Mellema, Tom Ahlbeck, Laura Kappler, and Robert Kristie. Also in attendance was Brian LeFevre from Sikich LLP, Mary Tomanek from Morgan Stanley Smith Barney and Charlie Atwell, the Board’s attorney.  Officer Genvaldi was present to independently count the ballots of the trustee election.  Trustee Carl Brauweiler was absent.  
           
Approval of Minutes:  The minutes from the January 25, 2012 meeting were reviewed by the Trustees.  Upon a motion made by Duane Mellema, seconded by Robert Kristie and unanimously approved, the minutes of the January 25, 2012 meeting were approved. 

Investment Report:  Mary Tomanek from Morgan Stanley Smith Barney presented the quarterly investment report.  Ms. Tomanek reviewed the performance of the portfolio.  She reviewed the current equity strategy. 

Our investments are performing well in both our equity and bond portions.  Many of our asset managers are performing above the averages.  Issues in play are the global easing and the domestic growth this year, which is currently running at an annual rate of about two percent. 
It was reviewed how we will be adding to our equity portfolio, which was slated at $300,000.00 for the month of April and May.  Their analysts are expecting a very strong market and an improving economy.  Our advisor is recommending that we invest now and then delay the May investment and consider not investing until September.

We discussed adding money to the equity portion.  The board is concerned about low interest rates making the equity market more attractive.  The board decided to invest on a quarterly basis to spread the market risk.
 
A motion was made by Robert Kristie and seconded by Tom Ahlbeck to amend the investment objective that was previously decided at the prior board meeting.  The motion is to invest $400,000.00 at this time and then review at the next meeting in July the investing of $400,000 based on the cash flow of the fund.  A roll call vote was taken: “Yeas” – Mellema, Ahlbeck, Kappler and Kristie “Nays” – none.  The motion was unanimously approved.

A motion was made by Robert Kristie and seconded by Duane Mellema to approve the investment performance report for the quarter ended March 31, 2012.  A roll call vote was taken:  “Yeas” – Kristie, Ahlbeck, Kappler and Mellema.  “Nays” – none.  The motion was unanimously approved.

Officer Genualdi – Left the meeting at 10:45
 
Accounting Firm: Brian LeFevre from Sikich LLP presented the financial statements for the period ended March 31, 2012.  Brian reviewed the balances in the account and the related income and expenses.  The Trustees reviewed the payment schedule for the calendar year. 

A motion was made by Robert Kristie and seconded by Duane Mellema to approve the financial report dated March 31, 2012 as presented.  A roll call vote was taken:  “Yeas” –   , Kristie, Mellema, Ahlbeck and Kappler.  “Nays” – none.  The motion unanimously carried.

Approval of Expenditures:  A motion was made by Robert Kristie and seconded by Tom Ahlbeck to approve the expenditures for the first quarter of 2012 as detailed in the attached report amounting to $679,623.98.  A roll call vote was taken:  “Yeas” –Kristie, Mellema, Ahlbeck and Kappler.  “Nays” – none.  The motion unanimously carried.

Update on Employment, Contribution Rollover, Death and Disability: 
Ruth Hahn is currently buying back creditable service to purchase military time by making additional contributions.  She asked the board to stop her payments and that was done in March.  She would like to get a refund.   The interest will only be paid on a separation of service from the police department.  A letter of the various options will be prepared by Sikich and approved by our legal counsel.  The time she has paid for will go towards her pension if and when she retires.  Brian from Sikich will put this letter together. 

Legal Issues:
Review the pending disability and the subpoena that has been filed by Officer Panizo.   A list of doctors that can do independent medical exams is available thru Mr Atwell. 

The Board reviewed the situation in that the officer is still working full time and claiming a disability. Considering these facts, the board is asking the attorney to review the issues and request records from the city.  The Board could set a hearing based on the interrogatories.

Commander William Polka is going to be retired as of April 30, 2012.  He is a 30 year veteran of the department.  He was hired March 8, 1982.  His annual salary is $109,282.00 and he will receive a pension of $81,961.50.  Our accountants will confirm this amount.

A motion to approve Commander Polka’s pension was made by Robert Kristie and seconded by Duane Mellema, the motion was unanimously approved.  

Officer Maibenco  retired as of September 7, 2011.  He is on a deferred pension and will be eligible for a pension as of 50 years old, which will be December 14, 2013.  The amount of his salary at the time of his retirement is $79,657.00. His hire date was January 5, 1987.  The pension will be adjusted by the suspension time. It was reduced by the 4 days over the total allowed of 30 days. 

A motion to approve Officer Maibenco’s pension was made by Robert Kristie and seconded by Duane Mellema, the motion was unanimously approved.

Officer Andrew Houghton has left the department and wants to move his funds through allowed portability after approximately four years of service.  He would like to move his pension to the City of Elgin.  The accountants will make the computation of the amount of the transfer.  A letter will be obtained on behalf of the Officer Houghton’s intentions to move his money.  No motion is required.

Officer Sean Dorsey has not given the board direction on his portability from the City of Chicago.  The officer has indicated that he will not be doing a transfer of the pension funds.  The board is asking him to make a formal request that he no longer wants to transfer the funds.

Election of Trustee:

Robert Kristie – 25 votes out of 28 ballots cast. He is elected as the retired member.
Duane Mellema – 22 votes out of 23 ballots cast.  He is elected as the active duty member.
Tom Ahlbeck made a motion to accept the ballots as opened by Office Genualdi and presented to the board.  Laura Kappler seconded and was unanimously approved.

The next meeting is scheduled for July 24, 2012.  1000am

Adjournment: A motion by Robert Kristie, seconded by Duane Mellema to adjourn the meeting at 11:48 a.m. unanimously carried.

Respectfully submitted,

_____________________                                          ___________________________
Laura Kappler, President                                            Robert Kristie, Secretary

Approved by the Board of Trustees on July 24, 2012.
These minutes were prepared by Tom Ahlbeck and Laura Kappler.