CIVILIAN AND POLICE PENSION BOARDS

The Civilian and Police Pension Boards met on August 22, 2007 at 1:32 p.m. with Chairman Hogan presiding. Members present were Mr. DePrima, Ret. Capt. Gray, Ret. Lt. Knotts, Chief Horvath (arrived 1:38 p.m.), Ret. Lt. Mullaney, Mr. Lucas, and Mrs. Rigby. Mrs. Braun and Mrs. Mitchell were absent.

AGENDA ADDITIONS/DELETIONS

Mr. Hogan requested that Item #6, Organizational Issues - Election of Officers, be renumbered as Item #2 and that the remaining items be renumbered accordingly.

Mr. Lucas moved for approval of the agenda, as amended, seconded by Ret. Lt. Mullaney and unanimously carried.

Organizational Issues – Election of Officers - General Employees (Civilian) Pension Board

Mr. Lucas moved to nominate Mr. Hogan to serve as Chairman of the Civilian Pension Board, seconded by Mr. McGiffin.

Mr. Lucas moved to close nominations, seconded by Mrs. Rigby and unanimously carried.

The motion to nominate Mr. Hogan to serve as Chairman of the Civilian Pension Board was unanimously carried.

Mr. DePrima moved to nominate Mr. Lucas to serve as Vice-Chairman of the Civilian Pension Board, seconded by Mrs. Rigby.

Mr. DePrima moved to close nominations, seconded by Mrs. Rigby and unanimously carried.

The motion to nominate Mr. Lucas to serve as Vice-Chairman of the Civilian Pension Board was unanimously carried.

Organizational Issues – Election of Officers - Law Enforcement (Police) Pension Board

Ret. Capt. Gray moved to nominate Ret. Lt. Mullaney to serve as Chairman of the Police Pension Board, seconded by Ret. Lt. Knotts.

Ret. Capt. Gray moved to close nominations, seconded by Ret. Lt. Knotts and unanimously carried.

The motion to nominate Ret. Lt. Mullaney to serve as Chairman of the Police Pension Board was unanimously carried.

Ret. Lt. Knotts moved to nominate Ret. Capt. Gray to serve as Vice-Chairman of the Police Pension Board, seconded by Ret. Lt. Mullaney.

Ret. Lt. Knotts moved to close nominations, seconded by Ret. Lt. Mullaney and unanimously carried.

The motion to nominate Ret. Capt. Gray to serve as Vice-Chairman of the Police Pension Board was unanimously carried.

Adoption of Minutes - May 8, 2007

Ret. Lt. Mullaney moved for approval of the Minutes of the May 8, 2007 Civilian and Police Pension Boards meeting, seconded by Mr. Lucas and carried with Mr. McGiffin abstaining.

Mr. Lucas moved for approval of the Minutes of the May 8, 2007 Civilian Pension Board meeting, seconded by Mrs. Rigby and carried with Mr. McGiffin abstaining.

Quarterly Performance - Presented by Lee Martin of Peirce Park Group

Mr. Lee Martin of Peirce Park Group reviewed the Quarterly Investment Performance Analysis as of June 30, 2007. Mr. Martin explained the various investment strategies and reviewed the Performance Summary for the General Employee and Police Funds, as follows:

GENERAL EMPLOYEE FUND

                                                                        TOTAL FUND                        POLICY INDEX

                   Quarterly Return                                  4.6%                                       3.9%

                   1 Year Return                                     17.3%                                      15.8%

                   3 Years Return                                    11.7%                                      10.2%

                   5 Years Return                                     8.5%                                       9.4%

                   Total Assets                                 $18,393,013

POLICE FUND

                                                                        TOTAL FUND                        POLICY INDEX

                   Quarterly Return                                  4.6%                                       3.9%

                   1 Year Return                                     17.3%                                      15.8%

                   3 Years Return                                    11.5%                                      10.2%

                   5 Years Return                                     8.3%                                       9.4%

                   Total Assets                                 $13,461,056

Mr. Martin also provided members with a handout indicating the proposed portfolio changes (Attachment #1). Responding to Mr. Lucas, Mr. Martin stated that the VanGuard Morgan Growth Fund contains more managers and is a smaller fund which can invest more in the mid-cap stocks.

Ret. Lt. Mullaney moved to accept the proposed portfolio changes as follows: (1) Rebalance the International Managers to 7% each, (2) Rebalance the Large Cap Growth managers to 8.5% each, and (3) Change DFA Small Value to Target Value Fund. The motion was seconded by Ret. Capt. Gray and unanimously carried.

Discussion - Setting Future Quarterly Performance Review Dates

Mr. Hogan stated that the next Quarterly Performance Review meeting is scheduled for November 21, 2007 at 1:30 p.m.

Discussion - Absentee Voting

Mr. Hogan reviewed the proposed ordinance amendments regarding allowing absentee voting in the Police and General Pension elections.

Mr. DePrima moved to recommend adoption of the proposed ordinance amendment that would allow absentee voting in the General Employee Pension Board elections (Attachment #2), seconded by Mr.  Lucas and unanimously carried.

Mr. DePrima moved to recommend adoption of the proposed ordinance amendment that would allow absentee voting in the Police Pension Board elections (Attachment #3) with the exception that the wording “-year” be removed from Section C - Item #2. The motion was seconded by Ret. Lt. Mullaney and unanimously carried.

Mr. DePrima moved for adjournment, seconded by Ret. Lt. Knotts and unanimously carried.

Meeting Adjourned at 2:25 P.M.

Respectfully submitted,

                                                                                                Kenneth L. Hogan 

Chairman

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