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Pursuant to public notice, a regular quarterly meeting of the Board of Trustees of the Park Ridge Police Pension Fund was held on Tuesday, July 24, 2012 at 10:00 at City Hall, 505 Butler Place, Park Ridge, Illinois.
Call to Order: President Laura Kappler called the meeting to order at 10:10 a.m. Trustee Kappler took a roll call. Present were trustees Laura Kappler, Tom Ahlbeck, Robert Kristie and Carl Brauweiler. Duane Mellema was absent. Also in attendance was Debbie Crabtree from Sikich LLP, Mary Tomanek from Morgan Stanley Smith Barney and Charlie Atwell, the Board’s attorney. Guests attending as part of Scouting project were Olivia Masier and Charles Melidosian.
Approval of Minutes: the Trustees reviewed the minutes from the April 24, 2012 meeting. Upon a motion made by Robert Kristie, seconded by Carl Brauweiler the minutes of the April 24, 2012 meeting were unanimously approved.
Investment Report: Mary Tomanek from Morgan Stanley Smith Barney presented the quarterly investment report. Ms. Tomanek reviewed the performance of the portfolio and the current equity strategy.
Ms. Tomanek discussed the easing credit in the markets worldwide in a global effort to reduce interest rates by their central banks. She demonstrated how the interest rates were decreasing in China. It is her opinion that the board should expect lower interest rates on fixed income investments. She talked about the uncertainty and volatility in the equity market. This has resulted in the market moving in a trading range and not moving higher or lower with more strength in the defensive sectors. In the fourth quarter of this year, our investment advisor is looking for a breakout and a better performing market.
The Trustees reviewed the amount of excess cash that would be available to invest in the equities. It was determined that there would be excess cash available based on the current balance, collection of tax receipts and other revenue.
On a motion made by Robert Kristie and seconded by Carl Brauweiler a motion was made to invest additional funds. The motion is to invest $400,000.00 at this time and to consider additional equity investments at the next meeting. The investment, based on the advise of our investment advisor, will be split 70% to the Cambiar Fund and 30% to the Red Granite fund. A roll call vote was taken: “Yeas”- Kristie, Ahlbeck, Brauweiler and Kappler “Nays”-none. The motion was unanimously approved.
Revised forms were completed for Morgan Stanley Smith Barney to be compliant.
Carl also wanted to discuss the impact on our actuary assumptions and the opinion of our investment manager due to the lower interest rates and lower return on equities. The investment manager thought that the rate of return being used in the 6.5% range is attainable. This will be reviewed in October with the report from the actuary.
Accounting Firm: Debbie Crabtree from Sikich LLP presented the financial statements for the fiscal year ended April 30, 2012.
A motion was made by Carl Brauweiler and seconded by Robert Kristie to approve the financial report dated April 30, 2012 as presented. A roll call vote was taken: “Yeas” - Kristie, Ahlbeck, Brauweiler and Kappler. “Nays”-none.
Debbie Crabtree from Sikich LLP also presented the financial statements for the period ended June 30, 2012. Debbie reviewed the balances in the accounts and related income and expenses.
A motion was made by Carl Brauweiler and seconded by Robert Kristie to approve the financial report dated June 30, 2012 as presented. A roll call vote was taken: “Yeas” - Kristie, Ahlbeck, Brauweiler and Kappler. “Nays”-none.
Approval of Expenditures: A motion was made by Robert Kristie and seconded by Carl Brauweiler to approve the expenditures for the second quarter of 2012 as detailed in the attached report amounting to $703,102.09. A roll call vote was taken: “Yeas” - Kristie, Ahlbeck, Brauweiler and Kappler. “Nays”-none. The motion unanimously carried.
Debbie Crabtree presented on behalf of Sikich LLP an engagement letter for the services in the coming year.
Robert Kristie made a motion that was seconded by Carl Brauweiler to accept the engagement letter for the fiscal year ended April 30, 2013.A roll call vote was taken: “Yeas” – Kristie, Kappler, Ahlbeck and Brauweiler “Nays”-none. The motion was unanimously approved.
On behalf of the board, Sikich LLP calculated the portability amount $63,592.16 to be sent to the Elgin Police Pension Fund on behalf of Officer Andrew Houghton.
A motion was made by Carl Brauweiler and seconded by Tom Ahlbeck to approve this transfer. “Yeas” - Kristie, Ahlbeck, Brauweiler and Kappler. “Nays”-none. The motion unanimously carried.
The City of Park Ridge has requested that the accountants at Sikich to forward the records and the required paperwork to the City and the auditors.
Trustee Training: The Trustees reviewed that all members are compliant with the required training and also the ethics portion.
All board members are to provide the information to the board that they have met the requirement for yearly training.
Elections: A Motion was made to leave the officers in place for the upcoming year. Upon a motion by Robert Kristie, seconded by Carl Brauweiler all officers will retain their positions. “Yeas” - Kristie, Ahlbeck, Brauweiler and Kappler. “Nays”-none. The motion unanimously carried.
Update on Employment, Contribution Rollover, Death and Disability: Two new officers have been hired effective July 9, 2012. They are Anthony Edwin Hernandez and Daniel Christopher Alonso. No action is necessary by the Board.
Officer Carlos Panizo is requesting disability. The City will not provide information without a faxed request. The medical release form was given to the City and the Board is waiting for a response from the city.
Adjournment: A motion by Robert Kristie, seconded by Laura Kappler to adjourn the meeting at 11:57 a.m. unanimously carried.
Respectfully submitted,
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Laura Kappler, President Robert Kristie, Secretary
Approved by the Board of Trustees on October 23, 2012.
These minutes were prepared by Tom Ahlbeck and Laura Kappler.
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