10-27-2010 - Joint Special General Employees' and Police Pension Boards of Trustees
Minutes - Joint Special Meeting
October 27, 2010
Page 1 of 3
kite CITY OF EDGEWATER
GENERAL EMPLOYEES' and POLICE OFFICERS' PENSION BOARD OF TRUSTEES
JOINT SPECIAL MEETING
CITY HALL COUNCIL CHAMBER
104 N. Riverside Drive, Edgewater, Florida 32132
Wednesday, October 27, 2010
9:00 a.m.
MINUTES
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A Q UORUM
The Edgewater General Employees' and Police Officers' Pension Boards held a special meeting on
Wednesday, October 27, 2010 in the City Hall Council Chamber at the City of Edgewater, Florida.
Members Present (General): Tyna Hilton
John Brackin
Tim Sopko
John McKinney
Members Absent (General): Bobby Laramore
Brenda Dewees
Gigi Bennington
Members Present (Police): Dan Blazi
Gary Conroy
Lawrence Leaf
Ferd Heeb
Vincent McCauley
Members Absent (Police): None
Plan Attorney: H. Lee Dehner
Milberg Attorneys: Anita Kartalopoulos
Christopher Polaszek
City Attorney: Aaron Wolfe
Performance Consultant: Jack Evatt, The Bogdahn Group
Plan Administrator: Sheila Hutcheson
City Staff: Julie Christine, Personnel Department
Donna Looney, Personnel Director
Tracey Barlow, City Manager
The special meeting of the General Employees' and Police Officers' Boards of Trustees was called to
order at 9:12 a.m. by Secretary Hilton and Chairman Blazi. Both Boards had a quorum. The Boards
welcomed new Police Trustee Vincent McCauley.
Discussion: Consideration of action with respect to the Principal contracts (Milberg LLP and
other consultants)
Attorney Anita Kartalopolous opened and introduced her associate, Christopher Polaszek. She
l oto provided an overview of the history of Milberg's association with the Boards; she and Mr. Polasczek
then discussed the long -time situation/issues with Principal. Lee Dehner, Attorney for the Boards,
also summarized historical information with relation to the contract issues with Principal. Actuary
General Employees' and Police Pension Boards of Trustees
Minutes - Joint Special Meeting
October 27, 2010
Page 2 of 3
Brad Heinrichs, Foster & Foster, presented updated information (as of October 1, 2010) regarding the
benefit index for both plans and the associated funding impact on the City, depending upon whether or
not Principal would release the funds if the affected retirees executed releases so that Principal would
not be responsible for future benefit payments. Performance Consultant Jack Evatt, The Bogdahn
Group, reviewed the portfolios' performance history under Principal's investment management, noting
the historical under - performance. The Boards' members discussed the various issues and concurred
with the steps /process outlined by the attorneys and consultants. The Boards then made the following
motions:
Police Board:
Member Conroy made a motion to authorize Milberg to proceed with the steps outlined in today's
discussions: prepare a position letter to Principal, followed by mediation and arbitration; Member
Leaf seconded the motion which passed unanimously on a roll call vote.
Member Conroy made a motion to authorize Attorney Dehner to file letters of complaint against
Principal with the Florida and Iowa Insurance Commissioners' offices; Member Heeb seconded the
motion which passed unanimously on a roll call vote.
General Employees' Board:
Member Sopko made a motion to authorize Milberg to proceed with the steps outlined in today's
discussions: prepare a position letter to Principal, followed by mediation and arbitration; Member
McKinney seconded the motion which passed unanimously.
Member Sopko made a motion to authorize Attorney Dehner to file letters of complaint against
Principal with the Florida and Iowa Insurance Commissioners' offices; Member McKinney seconded
the motion which passed unanimously.
STAFF REPORTS, CONSULTANTS' REPORTS, DISCUSSION /ACTION
The Administrator discussed the City Manager's request to schedule a joint workshop meeting for all
three Pension Board with the City Council on December 13, 2010 (the date of the quarterly meetings).
The Boards agreed to the meeting; Ms. Hutcheson said she would coordinate with the City Manager
regarding the meeting time and keep the Boards apprised.
TRUSTEES' REPORTS, DISCUSSION, AND ACTION/REQUESTS FROM THE
PUBLIC/EMPLOYEES PRESENT - None
ADJOURNMENT
Police Board:
Member Heeb made a motion for adjournment, which was seconded by Member Leaf; the motion
passed unanimously. The Police Board meeting adjourned at 11:32 a.m.
General Employees' and Police Pension Boards of Trustees
Minutes - Joint Special Meeting
October 27, 2010
Page 3 of 3
%kw General Employees' Board:
Secretary Hilton adjourned the General Employees' Board meeting at 11:33 a.m.
Respectfully Submitted: Approved:
Sheila Hutcheson Dan Bl , Chairman
Plan Administrator Police Officers' Pension Board
Approved:
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General Employees' Pension Board
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