HomeMy WebLinkAboutMinutes - 7/19/2022 - Police Pension BoardPolice Pension Board of Trustees
Regular Meeting Minutes
July 19, 2022
Call to Order
The regular meeting of the City of McHenry Police Pension Board of Trustees was called to order at 9:00
a.m. at McHenry City Hall, 333 S Green St, McHenry, IL.
Roll call:
Members present: President Jeffery Foerster, Officer Robert Beaudoin, Sergeant Nick Clesen, Thomas
Settles. Members 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.
Call for Nominations to Approve Election of Board Officers
Sergeant Clesen nominated Jeff Foerster for President. A motion was made by Thomas Settles and
seconded by Sergeant Clesen to close nominations for President. Voice Vote: 4-ayes. Motion carried.
A motion was made by Officer Beaudoin and seconded by Thomas Settles to have the Secretary cast one
unanimous ballot for Jeff Foerster for President. Voice Vote: 4-ayes. Motion carried.
Sergeant Clesen nominated Officer Beaudoin for Vice President. A motion was made by Sergeant Clesen
and seconded by Thomas Settles to close nominations for Vice President. Voice Vote: 4-ayes. Motion
carried. A motion was made by Thomas Settles and seconded by Sergeant Clesen to have the Secretary
cast one unanimous ballot for Robert Beaudoin for Vice President. Voice Vote: 4-ayes. Motion carried.
Officer Beaudoin nominated Sergeant Nick Clesen for Secretary. A motion was made by Thomas Settles
and seconded by Officer Beaudoin to close nominations for Secretary. Voice Vote: 4-ayes. Motion
carried. A motion was made by Officer Beaudoin and seconded by Thomas Settles to have the Secretary
cast one unanimous ballot for Sergeant Clesen for Secretary. Voice Vote: 4-ayes. Motion carried.
Thomas Settles nominated Cheryl Kranz for Assistant Secretary. A motion was made by Officer Beaudoin
and seconded by Sergeant Clesen to close nominations for Assistant Secretary. Voice Vote: 4-ayes.
Motion carried. A motion was made by Officer Beaudoin and seconded by Tom Settles to have the
Secretary cast one unanimous ballot for Cheryl Kranz as Assistant Secretary. Voice Vote: 4-ayes. Motion
carried.
Approve the April 12, 2022, meeting minutes
A motion was made by Tom Settles and seconded by Sergeant Clesen to approve the minutes from April
12, 2022. Roll Call Vote: 4-ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen, Thomas Settles. 1-
absent: Officer Beaudoin. Motion carried.
Semi-Annual Review of the Executive Session Minutes
There is still a set of closed session minutes that have not been released for Sergeant Lumber’s hearing.
A motion was made by Sergeant Clesen and seconded by Officer Beaudoin to keep Sergeant Lumber’s
hearing minutes closed until authorized by legal counsel. Roll Call Vote: 4-ayes: Jeff Foerster, Officer
Beaudoin, Sergeant Clesen, Thomas Settles. 1-absent: Cheryl Kranz. Motion carried.
Motion to approve the pension applications of Grahm McLure and William Campos
A motion was made by Officer Beaudoin and seconded by Sergeant Clesen to approve the pension
applications of Grahm McClure and William Campos. Roll Call Vote: 4-ayes: Jeff Foerster, Officer
Beaudoin, Sergeant Clesen, Thomas Settles. 1-absent: Cheryl Kranz. Motion carried.
Motion to approve the payment of bills
Jeff Foerster read aloud the four bills that were on the report to be paid. A motion was made by Thomas
Settles and seconded by Sergeant Clesen to approve the payment of bills as presented. Roll Call Vote: 4-
ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen, Thomas Settles. 1-absent: Cheryl Kranz. Motion
carried.
Extend the disability for Justin Debolt and Sean Klechak
A motion was made by Officer Beaudoin and seconded by Sergeant Clesen to extend the disability for
Justin Debolt and Sean Klechak. Roll Call Vote: 4-ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen,
Thomas Settles. 1-absent: Cheryl Kranz. Motion carried.
Approve adjustment to Diana Hernandez’s unpaid leave time
Jeff Foerster explained that an error was made in calculating Officer Hernandez’s unpaid leave time, and
an adjustment needs to be made in the amount of $586.15. A motion was made by Thomas Settles and
seconded by Sergeant Clesen to approve the adjustment to Diana Hernandez’s unpaid leave time. Roll
Call Vote: 4-ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen, Thomas Settles. 1-absent: Cheryl
Kranz. Motion carried.
Discussion/possible action regarding returning excess contributions – O’Herron portability
Jeff Foerster explained that Officer O’Herron requested to transfer time from Hanover Park to McHenry.
Lauterbach & Amen got numbers from Hanover Park and we approved the calculations. We have now
been told that they messed up and paid her too much money. They are requesting we pay them back
because they overpaid our pension fund. He also stated that our attorney has advised us that we are not
under a legal obligation to pay back the excess payments. A motion was made by Thomas Settles to
return the excess funds. The motion died for a lack of a second. A motion was made by Officer
Beaudoin and seconded by Sergeant Clesen to not return the excess contributions. Roll Call Vote: 3-
ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen. 1-Nay: Thomas Settles. 1-absent: Cheryl Kranz.
Motion carried.
Motion to approve the Treasurer’s Report
Finance Director Carolyn Lynch stated that the fund has recently lost $4 million due to the bad market. A
motion was made by Officer Beaudoin and seconded by Sergeant Clesen to approve the Treasurer’s
Report as presented. Roll Call Vote: 4-ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen, Thomas
Settles. 1-absent: Cheryl Kranz. Motion carried.
Capital Gains, Inc. Fixed Assets Report
Mr. Karshna thanked the board for the opportunity to manage the fixed income portfolio. We have
things laddered beautifully for the current economy. We have $1.2 million rolling off in August. He will
leave $1 million back and then Director Lynch can decide what she wants to do with it. Short bonds have
been the only safe place to hide in this economy. The benchmark is down .6% over the last 12 months,
and our portfolio is down 2.6%.
LPL Financial Equities Report
Jim Schmidt thanked the board for their trust and confidence in him. Year to date we are down 21.5%.
On the 15th he sent Mr. Karshna $4 milliion, and the market quickly dropped 10% right after that. The
summary at the end of the report is what equities is all about.
Review the IPOPIF Cash Management Policy and motion to submit the Enterprise Cash Flow Module
and MyStateStreet.com Access Form
President Foerster explained that the State pension fund is wanting to take our funds by September 1st.
A motion was made by Sergeant Clesen and seconded by Officer Beaudoin to submit the funds to IPOPIF
as requested on September 1st ,2022. Roll Call Vote: 3-ayes: Jeff Foerster, Officer Beaudoin, Sergeant
Clesen. 1-Nay: Thomas Settles. 1-absent: Cheryl Kranz. Motion carried.
Review and possible aproval of IPOPIF Exhibit A - Resolution Appointing Authorized Agents
A motion was made by Officer Beaudoin and seconded by Thomas Settles to approve the submission of
Exhibit A naming Jeff Foerster and Sergeant Clesen as Authorized Agents. Roll Call Vote: 3-ayes: Jeff
Foerster, Officer Beaudoin, Sergeant Clesen. 1-Nay: Thomas Settles. 1-absent: Cheryl Kranz. Motion
carried.
Review and possible aproval of IPOPIF Exhibit B Notice regarding Transfer of Investment Assets to the
Police Officers’ Pension Investment Fund
A motion was made by Thomas Settles and seconded by Sergeant Clesen to approve the submission of
Exhibit B, Notice regarding Transfer of Investment Funds, and to keep $1 million out for use of future
payments of bills and payroll. Roll Call Vote: 3-ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen. 1-
Nay: Thomas Settles. 1-absent: Cheryl Kranz. Motion carried.
Annual Training through the IML vs IPPFA
Deputy Clerk Monte Johnson explained that the IML has advertised that we can get free training for our
board members, as opposed to paying the IPPFA for the annual training. Clerk Johnson will forward the
information on as it comes closer to training time.
Death Audit Service and Louise Burg’s pension payments
President Foerster explained that the IPPFA has a death notification service. Lauterbach & Amen also
has a service that we have subscribed to. Louise Berg passed away earlier this year and we did not get a
notification. We have since paid $22,000 to her estate. The family was sent a letter requesting a refund
of the money that was paid. We have yet to hear back regarding those payments.
Motion to Adjourn
A motion was made by Tom Settles and seconded by Sergeant Clesen to adjourn at 10:07 a.m. Roll Call
Vote: 3-ayes: Jeff Foerster, Officer Beaudoin, Sergeant Clesen. 1-Nay: Thomas Settles. 1-absent: Cheryl
Kranz. Motion carried.
______________________________
Monte Johnson, Recording Secretary