HomeMy WebLinkAboutMinutes 1997 - 1998Minutes
ID Evanston Police Pension Fund
Board of Trustees
Regular Meeting of 1/29/97
This meeting was called to order in the Evanston Police Conference Room at 4:05PM by
President Schoolmaster. Present were Trustees Axelrood, Weisberg, Schoolmaster and Heytow.
Also present was Dale Bradley of Edward D. Jones. Heytow moved to read and approve the
minutes of the regular meeting of 10/31/96. The motion was seconded by Axelrood and carried
unanimously.
Heytow gave the following Secretary's Report. The payroll for October was $207,619.65,
November was $209,049.42 and December was $210,786.07. Heytow moved to admit the
following new officer applicants. Aretha Hartley, appointed 11/20/96, Mark Shydlowski,
appointed 12/4/96, James Gerard, appointed 12/16/96, Roger Ockrim, appointed W97, Raymond
Morris, appointed 1/6/97 and Steven Juiris, appointed 1/10/97. The motion was seconded by
Axelrood and carried unanimously. Heytow moved to approve payment of the following bills.
To Schuyler, Roche and Zwirner, $560.18 for professional legal services. To Wall and
Associates, $1,000 for the 4th quarter of 1996 professional consulting services. The motion was
seconded by Axelrood and carried unanimously. Heytow Reported on the following deaths.
Retired officer James Simms died on 12/20/96 leaving a widow, June Simms, who will continue
to receive a widow's pension of $804.37 per month. Widow Barbara Witt died on 11/29/96
leaving no beneficiaries. Widow Donna Murphy died on 11/25/96 leaving no beneficiaries.
There was no Treasurer's Report. The printed financial report form Wall and Associates
indicated that there will be no investments maturing before the Board's next meeting.
Schoolmaster updated the Board on the most recent status of the Board v. City of Evanston
funding suit. There was no new business.
The meeting was adjourned at 4:55pm by President Schoolmaster.
1 v
�r
Minutes
Evanston Police Pension Fund
Board of Trustees
Regular Meeting of 4/22/97
This meeting was called to order in the Evanston Police Department Conference Room at
4:IOPM by President Schoolmaster. Present were Trustees Weisberg, Schoolmaster, Hynds and
Heytow. Also present was the Boards financial advisor, Dave Wall, Robert Costello of First
Tennessee Bank, Frank J. Aten and Paul D. Rapponotti of Rockwood Capital Advisors, LLC.
Schoolmaster moved to read and approve the minutes of the Regular Meeting of 1/29/97, The
motion was seconded by Weisberg and carried unanimously.
Robert Costello addressed the Board to advise that First Tennessee Bank has recently opened an
office in Chicago, and he would like to bid on securities that the Fund may want to acquire.
Paul Rapponotti and Frank Aten of Rockwood Capital Advisors advised the Board that they have
opened an office in St. Louis and would like to manage some of our assets.
Dave Wall presented the Board with a report on the financial condition of the Fund and indicated
jthat the Fund had approximately $1,000,000 in the Bank One sweep account that should be
moved into a managed account or invested. He also reported that Boatman's Bank had been
acquired by a much larger financial institution, Nations Bank, and in his opinion, the close
working relationship we had with the Boatman's management team would no longer exist.
Heytow gave the following Secretary's report. The payroll for January was $214,743.27, for
February it was $215,737,58 and for March it was $215, 841.37. Heytow moved to accept the
following new appointees to the Police Department into the Fund. Robert Paprocki, appointed
1/17/97, Dennis Prieto, appointed 2/17/97, Charles Barnes, appointed 3/14/97, Conchita
Armstrong, appointed 4/3/97, Michael Carlson, appointed 4/3/97, Cathy DeFranceschi, appointed
4/3/97, Richard Pueschel, appointed 4/3/97, Thomas Beyna, appointed 4/3/97 and Dequence
Marbury, appointed 4/3/97. Weisberg seconded the motion which passed unanimously. Heytow
moved to pay a bill from Wall and associates for $1,000 for first quarter of 1997 consulting
services. Weisberg seconded the motion which carried unanimously.
Schoolmaster moved to freeze all account activity at Boatman's Bank and advise our custodian
that Boatman's no longer has authority to trade in account #2647006411 and to terminate our
management agreement with Boatman's Bank. Hynds seconded the motion which carried
unanimously. Schoolmaster moved to transfer $1,000,000 from account #2647006410 to account
#2647006411. The motion was seconded by Heytow and carried unanimously. Schoolmaster
moved to hire Rockwood Capital Advisors to manage account #2647006411 subject to signing a
management contract that meets our specifications. Heytow seconded the motion which carried
unanimously.
yfi-z/�7
Schoolmaster moved to approve the following retirement pensions. Jeffrey Estabrooke retired
3/19/97 after 22 years and 3 months and will receive a pension of $2,205.97/month. Harold Lund
retired 3/24/97 after 29 years and 1 month and will receive a pension of $3,266.56/month.
Weisberg seconded the motion which carried unanimously. Schoolmaster reported that an
election was held on April 21, 1997 to fill Heytow's expiring term. Heytow ran unopposed and
received 38 votes of 38 votes cast.
There being no other new business or old business to discuss, the meeting was adjourned by
Schoolmaster at 5:25PM.
J
Minutes
Evanston Police Pension Fund
Board of Trustees
Regular Meeting of 7/27/97
This meeting was called to order at 4:10PM by President Schoolmaster. Present were trustees
Schoolmaster, Hynds and Heytow. Also present was Dave Wall of Wall and Associates, the
Funds financial consnlhnt, and Mark Toledo of Mesimw Financial Services. Schoolmaster
moved to read and approve the minutes of the Board's regular meeting of 4/22/97. The motion
was seconded by Hynds and carried unanimously.
Heytow gave the following Secretary's report. The payroll for April was $218,337.15; for May
$219,428.84; for June $221,090.87. The following new police officers applied for membership
into the Fund. Bernard Campbell, appointed 8/29/96; Mitchell Maciszak, appointed 10/4/96;
Margaret Lueder, appointed 4125/97; Josephine Fuller, appointed 5/8/97; Larry Davis, appointed
5/8/97; Joseph Dugan, appointed 5/13/97; Ryan Glew, appointed 7/1/97; Efrain Gonzalez,
appointed 7/1/97. Heytow moved to accept all of them into the Fund. The motion was seconded
by Hynds and carried unanimously. Heytow reported that the following bills were due for
payment. To OMEGA, $650 for medical examinations of disable officer Gail Bednar-Keefe; to
Timothy Schoolmaster, 141.50 for reimbursement of out of pocket expenses to attend the IPPFA
training conference in Springfield, I On May 28, 1997; to Schuyler, Roche & Zwirner,
$2,992.30 for legal fees in the case of the Fund v. City of Evanston; to SkiydowsK Franklin,
Puchahki and Reimer, $656.25 for legal services regarding the disability case of Ofc. Gail
Bednar-Keefe; to IPPFA, S600 for 97/98 membership dues. Heytow moved to authorize
payment of 9 of the bills. The motion was seconded by Hynds and carried unanimously.
Schoolmaster abstained in the vote for the reimbursement of his expenses.
Heytow reported that retired Ofc. Robert Linden died on May 19, 1997 leaving no beneficiaries.
His estate will be sent 19 days of pension payments as soon as the letters of office arc received
by the Fund. Ofc. Steven Juiris resigned on 7124/97 after six months of employment. He will be
sent a refund of his contributions. Ofe. Ralph Harloff retired on 6/20/97 after 26 years, 9 months
of service. He will receive a monthly pension of $2, 532.77 beginning on his 50th birthday on
1/31/99.
Mark Toledo of Mesirow Financial addressed the Board and gave an overview of Mmirow
Financial and the services they would like to provide the Fund Dave Wall addressed the Board
and gave an update on the perfornrancc of the Fund's assets and an the passage of a new State
Law which will allow the Fund to invest up to 35% of its assets in equities or equity mutual
funds.
The meeting was adjourned at 5:15PM by president Schoolmaster
. Vf
IN,
Minutes
Evanston Police Pension Fund
Board of Trustees
Regular Meeting of 10/27/97
This meeting was called to order at 4:05 PM in the Police Conference Room by President
Schoolmaster. All trustees were present. A motion by Heytow to read and approve the minutes of
the regular meeting of 7/27/97 was seconded by Axelrood and carried unanimously.
Heytow gave the following Secretary's report. Payroll for July was $218,598.04, August was
$220,48252 and September was $219,886.82. New police officers. Daniel Russell, appointed on
9/3/97 and Mark Dobrowoski, appointed 9/3/97, made application to the Fund. The following
bills were presented for payment. From Wall and Associates, $1,000 for the 3rd quarter of 1997
for professional financial consulting services. From Rockwood Capital Advisors, for professional
assets management from April 1-Sept 30, 1997, $9,156.68. From Timothy Schoolmaster, for out
of pocket expenses incurred at the IPPFA Training Conference, $330.94. From Robert Heytow,
for out of pocket expenses incurred at the IPPFA Training Conference, $250.06, Heytow's motion
to accept the new members and pay the bills presented was seconded by AxchxxA and carried
unanimously. Steven Juirius resigned on 7/24/97 after 6 months of service and was refunded his
contribution of $1,427.75. Richard Puesche resigned on 8/8/97 after 4 months of service and
received a refund of $1,159.89, Michael Carlson resigned on 8/27/97 and received a refund of
1,465,79. Marion Braithwaite, widow of deceased officer Richard Braithwaite, died on 9/23/97
leaving no beneficiaries.
The Fund received information from the Department of Insurance reporting that as of January 1,
1998, the Fund will be allowed to invest up to 35% of our assets in mutual funds, stocks or
separate accounts of Insurance companies. Also, a law permitting portability of service credits
from one Article 3 Fund to another was passed and signed into law, but rules on its application are
forthcoming.
Dave Wall reported that as of 9/30/97, the Fund had $2.56 million in cash to invest. No
investment decision was made, however, and it was decided to let the money stay in cash until a
decision was made on how it should be invested Bob Costello, of First Tennessee Bank, gave a
presentation recommending 0 coupon bonds his company has available.
Ralph Brown, the Fund's attorney, appeared to say that the City has moved to dismiss our cane for
funding under the precedent set by the McNamee decision of the appellate court. This issue is still
before the court.
Schoolmaster moved to authorize up to $5,000 to fund the surveillance of up to three people
receiving disability benefits. This would be the beginning of as many as ten such follow up
investigations to examine disability status.
.:J The meeting was adjourned at 6PM.
Minutes
-� Evanston Police Pension Fund
Board of Trustees
Regular Meeting of 1117/98
This meeting was called to order at 4:09 PM in the Police Communications Conference Room by
President Schoolmaster. Present were Trustees Schoolmaster, Weisberg, Axelrood and Heytow.
Also present was the Board's financial consultant, Dave Wall. Heytow moved to read and
approve the minutes of the regular meeting of 10/27/97. Schoolmaster seconded the motion
which carried unanimously.
Heytow gave the following Secretary's report. The payroll for October was $221,648.86,
November was $223,047.09 and December was $224,159.14. Retired Officer Edwin Tuszynski
died on I2/4/97 leaving no beneficiaries ending his $1,793.27 monthly pension. Lillian Peterson,
widow of deceased Lt. Lowell Peterson, died on 12/23/97 leaving no beneficiaries and ending her
$677.82 monthly pension. Retired Sgt. Ronald VanDenHeuvel died on 11/15/97 leaving a
widow, Marcia, who will collect a $1,700.38 monthly widow's pension. Ofc. Dequence Marbury
was terminated on l 1/8/97 but made no request for refund of his contributions as of this date.
Ofc. Conchita Armstrong resigned on 1 /5/98 but made no request for refund of her contributions
r as of this date. A new officer, George Gonzalez, was hired on 12/22/97. Heytow moved to
accept Ofc. Gonzalez into the Fund. The motion was seconded by Mr. Axelrood and carried
unanimously.
Heytow moved to approve payment of the following bills. To Rockwood Capital Advisors,
$6,492.16 for the 4th quarter 1997 professional asset management. To Women's Medical Group,
PC, $200 for the medical examination of disabled Ofc. Bednar Keefe. To Wall and Associates,
$1,000 for the 4th quarter of 1997 professional financial consulting services. The motion was
seconded by Mr. Axelrood and carried unanimously.
Dave Wall gave the Board a report on the Fund's financial condition. The value of the Fund is
approximately $37.5 million which is up $1 million from the last quarter. We have $3.5 million
in insurance separate accounts with Voyager and Hartford that we can claim without paying any
exit fees and approximately $3 million in cash to invest. A discussion was held on the
advantages and disadvantages of managers vs. mutual funds and active vs. passive mutual fund
management. A special meeting will be held to decide how that money is to be invested.
There was no old business to discuss. The meeting was adjourned by president Schoolmaster at
5:35PM.
'1 Minutes
~•'1 Evanston Police Pension Fund
Board of Trustees
Special Meeting of 2/25/98
0
This meeting was called to order at 4PM in the Police Communications Conference Room.
Present were trustees Schoolmaster, Heytow, Axelrood and Weissberg. Also present was the
Board's financial consultant, Dave Wall.
A discussion was held regarding the advantages and disadvantages of management vs. mutual
funds and active vs. passive mutual funds. Dave Wall presented information on several funds
and their costs. After the discussion, the consensus of the Board was to put the $6 million from
closing the two separate insurance accounts and adding cash into the Vanguard Institutional Trust
or the Vanguard Index Trust 500 mutual fund. The first choice was the institutional fund, but it
requires a $10 million investment which the Board was not prepared to make. The second choice
is the Index Trust 500. Dave Wall will have the necessary paperwork sent to the Board.
The meeting was adjourned at 5:15PM
i
b.
Minutes
Evanston Police Pension Fund
Board of Trustees
Regular Meeting of 4/28/98
This meeting was called to order at 4:55PM in the Chiefs conference room by President
Schoolmaster. Present were trustees Weisberg, Heytow and Schoolmaster. Also present was the
Board's financial consultant, Dave Wall.
Representatives of Heil & Heil, Tucker Sheahan and Alice Valentine, and a representative of
Fortis Investments gave a presentation on the benefits of investing in mutual finds through Heil
& Heil. They advised the Board on the histories of several funds and said that they would like to
be the Fund's representative if we chose to invest in mutual funds.
Representatives of Rockwood Capital Advisors, one of the Fund's fixed income managers, Paul
Rapponotti and Andrew Holtgrieve, addressed the Board and reported on Rockwood's
investment returns since being hired by our Board.
Heytow gave the following Secretary's report. The payroll for January was $229,870.08, for
February it was $228, l 16.57 and for March it was $228,298.64. Heytow moved to pay the
following bills. To Schuyler, Roche and Zwirner, $3,392.54 for professional legal services
regarding the Fund v. City of Evanston. To Sklodowski, Puchalski and Reimer, $93.75 for
professional legal services regarding Ofc. Gail Bednar-Keefe. To Wall and Associates, $1,000
for 1 st quarter, 1998 professional financial consulting services. Schoolmaster seconded the
motion which carried unanimously.
Heytow reported on the following deaths of annuitants. Lillian Peterson, widow, died on
12/23/97 leaving no beneficiaries ending her $677.82 pension. Francis Drogos, widow, died on
2/22/98 leaving no beneficiaries ending her $433.88 pension. Retired officer Roger Branstrom
died on 3/22/98 leaving a widow, Clareen, who will receive a widow's pension of $2,274.78.
Margaret Cameron, widow, died on 4/10/98 leaving no beneficiaries ending her $400 pension.
Heytow reported on the election to fill Tim Schoolmaster's expiring term. Nominating petitions
were received only for Tim Schoolmaster who was running for reelection for a term expiring in
April, 2000. The election was held on 4/20/98 with Timothy Schoolmaster and a space for a
write in candidate on the ballot. Of nine votes cast, Timothy Schoolmaster received all nine
votes and was reelected for another term.
Dave Wall presented the Board with a new Investment Police, titles Statement of Investment
Police, Objectives and Guidelines, that he recommended for adoption by the Board. The
document was read by the trustees. Schoolmaster moved to adopt the new Investment Policy.
Heytow seconded the motion which carried unanimously. Wall also recommended the Fund take
a larger position in small cap stocks to better diversify our portfolio.
Dave Wall presented the Board with a new fee schedule based on the assets of the Fund. This is
a more typical fee structure within the industry. The new fee structure proposes a fee of 4 basis
points on the first $25 million and 2 basis points on assets over $25 million. The proposal was to
implement the new fee structure as of April 31, 1998, the end of the 1 st quarter of the year.
Schoolmaster moved to accept the new fee structure. Heytow seconded the motion which carried
unanimously.
The Board has $6 million in a bank account that is to be transferred to the Vanguard Index Trust
500 mutual fund as soon as possible. Heytow and Schoolmaster will contact Bank One and take
the forms there to begin the purchase of the mutual fund with Larry Richie or David Lewis of
Bank One.
A discussion was held regarding the litigation of the Fund v. City of Evanston currently being
handled by Schuyler, Roche & Zwimer. Ralph Brown of that firm advised that he thought it
would be very difficult, if not impossible, to further litigate this case because of the finding in the
McNamee case. Heytow reported telling Ralph Brown on the phone in the beginning of April,
1998 not to bill anymore time on that file, and the Board would decide what to do with it.
Schoolmaster moved to remove the file from Schuyler, Roche & Zwimer and pay our final bill to
them and terminate our professional relationship with them. Heytow seconded the motion which
carried unanimously. Heytow moved to give the Iegal file to Sklodowski, Puchalski & Reimer,
the Boards legal consultant and representative on other issues, for review and legal opinion of the
case. The motion was seconded by Weisberg. Schoolmaster recused himself from the vote, and
Heytow and Weisberg voted Aye. The motion carried. Schoolmaster will write a letter to Ralph
Brown and Schuyler, Roche & Zwirner advising them of the Board's decision.
The meeting was adjourned at 6:10PM
Minutes
Evanston Police Pension
Board of Trustees
Regular Meeting of July 29, 1998
This meeting was called to order at 4: l OPM in the Communications Bureau conference room.
Present were trustees Weisberg, Axelrood, Schoolmaster and Heytow. Also present was the
Board's financial consultant, Dave Wall.
Heytow moved to read and approve the minutes of the regular meeting; of April 18 199& The
motion was seconded by Axelrood and carried unanimously. Heytow gave the following
Secretary's report. The payroll for April was $228,177.26, for may it was $227,875.26 and for
June it was $227,441.38. Ofc. Anusch Bertucci resigned effective July 1, 1997 after 8 years and
I month of service. She was sent a refund of her contributions in the amount of $27,713.64.
Ofc. Roger Okrim resigned on June 8, 1998 after I year and 6 months of service. He was sent a
refund of his contributions in the amount of $4,850.60.
lieytow moved to pay the following; bills. To Sklodowski, Franklin, Puchalski & Reimer,
$312.00 for professional legal services. To Schuyler, Roche & Zwirner, $3.10 for professional
legal services. It the Illinois Police Pension Fund Association, $650 for annual membership dues
through July, 1999. To Rockwood Capital Advisors, $6,576.42 for professional asset
management for the first quarter of 1998. To Rockwood Capital Advisors, $6,695 2I for
professional asset management for the second quarter of 1998. To Wall & Associates, $3,192.51
for professional financial consulting; services for the second quarter of 1998. To Robert Heytow,
trustee, $54.72 for reimbursement for the cost of a plaque for retiring Fund treasurer, Robert
Shonk. Schoolmaster seconded the motion which carried unanimously.
Heytow reported receiving a disability pension application from Ofc. Raymond Morris and a date
of August 8, 1998 was set for the special meeting to consider the request.
Heytow moved to accept the following applications for regular retirement pensions. Cmdr
Michael Gresham retired on August 1. 1998 after 28 years and 9 months of service and will
receive a monthly pension of$4.072.31. Sgt Charles Heuer retired on August 3, 1998 after 32
years of service and wIII receive a monthly pension of $3,579.84. The motion was seconded by
Schoolmaster and carried unanimously.
The following new officers were hired. Evelyn Bednarz was hired on 5/4/98. Edwin Gregory
was hired on 5/6/98. Ervin DeLeon was hired on 5/20198. Liam Demsey was hired on 5/20/98.
'the treasurer's report showed that the Fund had $3.1 million in cash to invest. Dave Wall
recommended increasing the Fund's exposure in international and small cap equities with 5% or
$2 million in international investments. The $6 million investment in the Vanguard Index Trust
500 has been completed.
Schoolmaster reported that the Fund's legal business has been moved from Schuyler, Roche &
Zwirner to Sklodowski, Franklin, Puchalski & Reimer. The Illinois Police Pension Fund
Association has filed a motion in court to allow pension funds to pay the Department of
Insurance by check instead of allowing them to directly withdraw funds electronically from the
fund's account. The issue is still pending. Schoolmaster moved to allow the expenditure of an
additional $5,000 to pay for video surveillance. Heytow seconded the motion which carried
unanimously.
The meeting was adjourned at 5:1OPM.
r
Minutes
✓ Special Meeting
Evanston Police Pension
Board of Trustees
8/5/98
This meeting was called to order at 4:35 PM in the police communications conference room to
consider the non duty related disability application of Officer Raymond Morris. Present were
Trustees Axelrood, Schoolmaster and Heytow. Also present were Officer Raymond Morris Sr.,
Rick Reimer, the Fund's attorney and Michelle Marvin, a certified shorthand reporter. The
meeting was recorded by Ms Marvin, and the transcripts of the meeting will be placed in Officer
Morris' pension file.
Officer Morris presented the board with an application for non duty disability pension because he
was diagnosed with a blood clot in his leg and is being treated with Kumadin, a blood thinner,
therapy. This medication will cause severe bleeding from any cut or bruise suffered by Officer
Morris putting him at great risk if he continued to perform the duties of a police officer. He also
produced certificates from three doctors to support the claim that it would be extremely
dangerous for Officer Morris to act as a police officer. Heytow reported that he spoke to the
Fund's medical consultant, Dr. Vogel, of OMEGA, who stated that if Officer Morris is taking
Kumadin he cannot do the work of police officer.
Scholmaster moved to approve the non duty related disability pension application of Officer
Morris. The motion was seconded by Axelrood and carried unanimously. Officer Morris will
receive a monthly pension of $1,775 which is 50% of his annual salary of $42,384/yr. Payments
will be retroactive to his last day of pay. He was last paid on July 13, 1998, so his pension
benefits will begin as of July l4, 1998.
Minutes
Regular Meeting
Evanston Police Pension
Board of Trustees
October 28, 1998
This meeting was called to order at 4:02PM by President Schoolmaster. Present were trustees
Hynds, Axelrood, Weisberg and Heytow. Also present were the Fund's treasurer, William
Stafford and the Board's financial consultant, Dave Wall. Heytow moved to read and approve
the minutes of the special meeting of August 8, 1998 and the regular meeting of July 29, 1998.
The motion was seconded by Schoolmaster and carried unanimously.
Heytow gave the following Secretary's report. The payroll for July was $227,694.16; for August
it was $236,881.39; and for September it was $239,942.17.
Heytow moved to pay the following bills, To Rockwood Capital, $6,896.41 for professional
asset management for the third quarter of 1998. To InPhoto, $2,325 for payment of invoice #'s
95540, 94976, 93606 and 92070. To Wall and Associates, $3,238.94 for professional financial
consulting services for the third quarter of 1998. The motion was seconded by Axelrood and
carried unanimously.
.-1
Officer Evelyn Bednarz was terminated on September 17, 1998 after 4.5 months of service. She
will be given a refund of her contributions in the amount of $1,367.40 as soon as she requests it.
Heytow moved to approve the following regular pensions. Ofe. Gregory Tomczyk retired on
August 22, 1998 after 20 years and 9 months of service and will receive $2,198.50 monthly. Lt.
Ronald Walczak retired on September 9, 1998 after 29 years and I month of service and will
receive $3,858.94 monthly. Sgt. Robert Rubel retired on October 16, 1998 after 34 years of
service and will receive $3,629.56 monthly. Schoolmaster seconded the motion which carried
unanimously.
Mr. Stafford gave the Board a forecast of estimated cash flow of the Fund through February,
1999 which shows a $513,643 cumulative excess cash over cash disbursements. Mr. Wall gave a
performance summary of the Fund's assets and recommended increasing the Fund's position in
small cap equities. Mr. Todd Renihan and Mr. Thomas Mocogni of Equitable and Ms. Alice
Valentine and'Mr. Tucker Sheehan of Heil and Heil gave short presentations to the Board.
The meeting was adjourned at 5:10PM.