April 21, 2011 Finance Committee Minutes

Approved as Presented – May 23, 2011

Minutes of a Meeting of the Finance Committee
of the Naperville Park District Board of Commissioners

Held on April 21, 2011

8:30 a.m.

320 West Jackson Ave.

Executive Conference Area

Naperville, IL60540

  1. Call to Order - The meeting was called to order by Commissioner Heide at 8:30 a.m.
  1. Roll Call:

Commissioner Marie Todd

Commissioner Gerry Heide

President Mike Reilly

Executive Director Ray McGury

Accounting Manager Jeremy Link

Finance Director Sue Stanish

  1. Matters of the Public – There were no members of the public present at the meeting.
  1. Approval of Minutes

A motion was made by President Reilly and a second by Commissioner Todd to approve the March 25, 2011 Finance Committee minutes. The motion was unanimously approved.

  1. Request for Proposal – Investment Advisory Services

Staff presented the results from the RPF for Investment Advisory Services. The RFP was sent to the six firms below who all have experience managing public funds. The District requested a proposal to manage $1 MM in a separately managed account.

Sawyer FaldutoJP Morgan Chase

MB FinancialPNC Bank

Harris BankPFM

Based on the $1 million investment amount, PNC Bank and PFM did not submit a proposal. Of the other four entities Harris Bank and JP Morgan Chase proposed different investment vehicles than a separately managed portfolio. Sawyer Falduto and MB Financial submitted complete proposals to separately manage funds for the District.

The Finance Committee supported staff’s recommendation to contract with the firm of Sawyer Falduto to manage $1 million of the District’s portfolio. Sawyer Falduto has the lowest fees and staff has experience with the firm partners for over 14 years. Sawyer Falduto has a solid reputation and expertise in the management of public funds. All securities purchased would be held with an independent third party (Schwab). The Committee discussed the following:

  • Attendance at Park District Finance Committee/Board meetings – Sawyer Falduto would attend quarterly Finance Committee meetings and if desired present a year end update to the board.
  • The Board will receive monthly investment information that will be included in the Treasurer’s Report.
  • While the portfolio will start with a $1 million investment, the Finance Director would have the flexibility to increase funds under management up to $5 million. The increase in funds greater than $1 million will depend on performance, cash flow needs and market conditions. In the event that it makes financial sense to exceed $5 million, the Finance Committee will have authority to approve a new maximum amount.

The Finance Committee recommended this item be placed on the 4/27/11 Board Workshop for discussion.

12/31/10 Audit Update

Staff presented an update of the audit progress and noted the first year with new auditors went very well. Ron Amen will be at a future board meeting to present the audit and related documents.

  1. Adjournment

A motion was made by Commissioner Heide and a second by President Reilly to adjourn the meeting at 9:05 a.m.

Submitted by Sue StanishPage 1