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Home My WebLink AboutMinutes - 07/09/2019 - Police Pension Board A Police Pension Board of Trustees Regular Meeting Minutes July 9,2019 Call to Order The regular meeting of the City of McHenry Police Pension Board of Trustees was called to order at 2:35 p.m. in the City Council Chambers at 333 S. Green Street, McHenry, IL. Roll call: Members present: President Jeffery Foerster, Sergeant Nick Clesen, Ann Buss, Officer Marc Fisher. Absent: Cheryl Kranz. Others present: Monte Johnson, Carolyn Lynch, Gary Karshna,James Schmidt Public Input: No members of the public were present to offer comments. Meeting Minutes A motion was made by Sergeant Clesen and seconded by Officer Fisher to approve the minutes of the meetings from April 5,2019,and May 10,2019. Vote: 4-ayes by unanimous voice vote. 0-nays,0- abstained., 1-absent. Motion carried. President Foerster explained that no written decision has been received regarding the executive session minutes that are yet to be released. It is recommended to approve their release during the next review. A motion was made by Officer Fisher and seconded by Sergeant Clesen to not release all remaining executive session minutes as the need still exists to keep them confidential.Vote: 4-ayes by unanimous voice vote. 0-nays,0-abstained., 1-absent. Motion carried. New Business Call for Nominations and Motion to approve Annual Election of Board Officers A motion was made by Officer Fisher and seconded by Sergeant Clesen to nominate Jeff Foerster as President.There were no other nominations. A motion was made by Sergeant Clesen and seconded by Officer Fisher to close nominations for President. Vote: 4-ayes by unanimous voice vote. 0-nays,0- abstained., 1-absent. Motion carried. A motion was made by Sergeant Clesen and seconded by Officer Fisher to accept the unanimous ballot of Jeff Foerster for President. Roll Call:Vote: 4-ayes:Sergeant Clesen,Officer Fisher,Jeff Foerster,Ann Buss. 0-nays,0-abstained., 1-absent: Cheryl Kranz. Motion carried. A motion was made by Officer Fisher and seconded by Ann Buss to nominate Sergeant Clesen as Vice President.There were no other nominations.A motion was made by Ann Buss and seconded by Officer Fisher to close nominations for Vice President.Vote: 4-ayes by unanimous voice vote. 0-nays,0- abstained., 1-absent. Motion carried. A motion was made by Officer Fisher and seconded by Ann Buss to accept the unanimous ballot of Sergeant Clesen for Vice President. Roll Call:Vote:4-ayes: Officer Fisher,Ann Buss,Jeff Foerster,Sergeant Clesen.0-nays,0-abastained, 1-absent:Cheryl Kranz. Motion carried. A motion was made by Sergeant Clesen and seconded by Ann Buss to nominate Officer Fisher as Secretary.There were no other nominations.A motion was made by Sergeant Clesen and seconded by Ann Buss to close nominations.Vote: 4-ayes by unanimous voice vote. 0-nays,0-abstained., 1-absent. Motion carried. A motion was made by Sergeant Clesen and seconded by Ann Buss to accept the unanimous ballot of Officer Fisher for Secretary. Roll Call:Vote: 4-ayes: Sergeant Clesen,Ann Buss,Jeff Foerster, Officer Fisher.0-nays,0-abstained, 1-absent:Cheryl Kranz. Motion carried. A motion was made by Sergeant Clesen and seconded by Ann Buss to nominate Cheryl Kranz as Assistant Secretary.There were no other nominations.A motion was made by Officer Fisher and seconded by Sergeant Clesen to close nominations for Assistant Secretary.Vote: 4-ayes by unanimous voice vote. 0-nays,0-abstained., 1-absent. Motion carried. A motion was made by Sergeant Clesen and seconded by Officer Fisher to accept the unanimous ballot of Cheryl Kranz as Assistant Secretary. Roll Call:Vote:4-ayes: Sergeant Clesen,Officer Fisher,Jeff Foerster,Ann Buss.0-nays,0-abastained, 1- absent: Cheryl Kranz. Motion carried. 2019/20 Police Pension Board of Trustees Meeting Schedule The proposed meeting schedule was presented as follows,with meeting times at 2:30 p.m.: Tuesday, October 8, 2019 Tuesday,January 14, 2020 Tuesday,April 14, 2020 Tuesday,July 14, 2010 A motion was made by Sergeant Clesen and seconded by Ann Buss to approve the 2019/20 Police Pension Board of Trustees Meeting Schedule. Vote: 4-ayes by unanimous voice vote. 0-nays,0- abstained., 1-absent. Motion carried. President Foerster explained that Blake Britton only worked for the City of McHenry for six days, but his contributions must be accepted into the pension fund.A motion was made by Sergeant Clesen and seconded by Officer Fisher to approve the applications for participation in the Police Pension Fund by Officers Diana Hernandez, Blake Britton,and John Staines. Roll Call:Vote:4-ayes: Sergeant Clesen, Officer Fisher, President Foerster,Ann Buss.0-nays,0-abstained, 1-absent: Cheryl Kranz. Motion carried. An application was received from Sergeant Kevin Cox for his retirement on June 251h.A motion was made by Ann Buss and seconded by Sergeant Clesen to approve the retirement of Sergeant Kevin Cox. Roll Call:Vote:4-ayes:Ann Buss, Sergeant Clesen, President Foerster, Officer Fisher.0-nays,0-abstained, 1-absent: Cheryl Kranz. Motion carried. Eve Kulcsar has$17,529.72 in contributions in the fund for her time as a police officer.She has requested a refund of those contributions. A motion was made by Sergeant Clesen and seconded by Officer Fisher to approve the request from Eve Kulcsar for a refund of contributions. Roll Call:Vote:4- ayes: Sergeant Clesen, Officer Fisher, President Foerster,Ann Buss,0-nays,0-abstained, 1-absent: Cheryl Kranz. Motion carried. A motion was made by Sergeant Clessen and seconded by Officer Fisher to accept the annual independent medical examination for Police Disability Pensioner Justin Debolt. Roll Call:Vote:4-ayes: Sergeant Clesen, Officer Fisher, President Foerster,Ann Buss,0-nays,0-abstained, 1-absent: Cheryl Kranz. Motion carried. Report of Investment Accounts A motion was made by Officer Fisher and seconded by Sergeant Clesen to approve the Treasurer's Report as presented by Treasurer Lynch.Vote: 4-ayes by unanimous voice vote. 0-nays,0-abstained., 1-absent. Motion carried. Fixed Assets Investment Report Investment Manager Gary Karshna reported that interest rates are lower than originally expected.One possible cause is the trade issues between the United States and China.The bonds could remain flat for a while, but there should be a normalized curve over time.The rate of return for the first two months for the McHenry Police Pension Fund is 1.78%. Equities Investment Report Investment Advisor James Schmidt highlighted the numbers with a year to date return of 17.77%After adding$500,000 to the portfolio,that amount has increased 6.12%in just two months. He also explained that the A class shares are no longer available for purchase in the retirement accounts.The advisory fee was built into the A share. It is necessary to show full disclosure in the report, and it is recommended to convert the A shares to R6 shares. Internally the R6 shares are cheaper by 7/10 of 1%. President Foerster explained that the advisory fee will now be billed quarterly and would need to be approved with the other bills.A motion was made by Officer Fisher and seconded by Sergeant Clesen to convert the"A"shares American Funds to R6 share class funds. Roll Call:Vote:4-ayes: Officer Fisher, Sergeant Clesen, President Foerster,Ann Buss,0-nays,o-abstained, 1-absent: Cheryl Kranz. Motion carried. Payment of Bills President Foerster read the list of bills as follows: Illinois Dept of Insurance $ 5,069.71 Capital Gains $ 5,176.00 Debolt,Justin $ 111.11 Examworks Inc $13,099.00 McCorkle Litigation Services $ 741.50 Mesirow Ins. $4,512.00 A motion was made by Sergeant Clesen and seconded by Officer Fisher to approve the bills as presented. Roll Call:Vote:4-ayes: Sergeant Clesen,Officer Fisher, President Foerster,Ann Buss,0-nays, 0-abstained, 1-absent: Cheryl Kranz. Motion carried. Police Pension Trustee Training Update President Foerster explained that Cheryl Kranz and Ann Buss will be starting their once a month training at the end of August in Hoffman Estates and Naperville. The remaining members will be registered for the 2019 MidAmerican Pension Conference from October 1-4 in Lake Geneva,WI. Motion to Adiourn There being no further business to discuss, a motion was made by Sergeant Clesen and seconded by Ann Buss to adiourn from the public meeting at 3:16 p.m. Vote: 4-ayes by unanimous voice vote. 0- nays,0-abstained., 1-absent. Motion carried. CA . h-"= Monte Johnson, Recording Secretary