01-15-2013 - Special Joint with General & Police Pension Boards �fT
CITY COUNCIL OF EDGEWATER
SPECIAL MEETING
JANUARY 15, 2013
1:00 P.M.
COUNCIL CHAMBERS
MINUTES
SPECIAL JOINT MEETING BETWEEN THE CITY COUNCIL, GENERAL EMPLOYEES
PENSION BOARD AND POLICE PENSION BOARD
1. CALL TO ORDER, ROLL CALL, PLEDGE OF ALLEGIANCE, INVOCATION
Mayor Thomas called the Special Meeting to order at 1 : 00 p.m. in the
Council Chambers .
There was a silent invocation and pledge of allegiance to the Flag.
Present Mayor Michael Thomas
Councilwoman Christine Power
Councilman Michael Ignasiak
Councilman Gene Emter
City Manager Tracey Barlow
City Attorney Aaron Wolfe
City Clerk Bonnie Wenzel
General Employees Pension Board
Tyna Hilton
John McKinney
Tim Sopko
John Brackin
Bobby Laramore
Police Pension Board
Lawrence Leaf
James Morey
John Tarr
Excused Councilwoman Gigi Bennington
Brenda Dewees
Dave Arcieri
Ferd Heeb
2. Review annuity price estimate and authorization to execute final
termination notice with Principal
City Manager Barlow made a staff presentation. He asked the Board
members to see Personnel Director Donna Looney directly after the
meeting in case there is a need for signatures .
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Council Special Meeting
January 15, 2013
Brad Heinrichs, Foster & Foster, made a presentation by describing the
annuity price estimates he received. He referred to letters he had
passed out, one for the Police plan and one for the General Employees
plan. He recommended they go forward except for the fact that on
Friday he noticed they had a benefit commencement date for all of this
as February 1, 2015. They wanted to take the money from the funds now
but they wouldn't start commencing paying benefits for the retirees
until February 1, 2015. He felt that was a bad deal that he couldn't
in good conscience recommend to the City. Principal contacted Roland
Riggs and said there was a typographical mistake and the new quotes
had been delivered saying the benefits would commence on February 1,
2013. Since the change had been made he recommended they consider
moving forward with the transaction.
Mr. Heinrichs then answered questions presented by Councilman
Ignasiak.
Mr. Heinrichs, Lee Dehner of Christiansen & Dehner, P.A. , and City
Manager Barlow answered questions presented by Councilman Emter and
Councilman Ignasiak.
Mayor Thomas entertained a motion from the General Employees Pension
Board. City Clerk Wenzel asked that whoever made the motion speak
into the microphone.
Ms . Hilton asked for a motion from the General Employees Pension Board
to go ahead and accept the notice to proceed for Principal of
termination, effective immediately. Mr. Sopko seconded the motion.
City Clerk Wenzel asked Ms. Hilton if she was serving as Vice
Chairman. Due to her serving as Vice Chairman she was not able to
make a motion.
John McKinney moved to approve accepting the final quote from
Principal for the annuity dated January 15, 2013, second by Tim Sopko.
The MOTION CARRIED 5-0-0.
Yes Tim Sopko, John Brackin, John McKinney, Tyna Hilton, Bobby
La ramore
No None
Abstain None
Mayor Thomas entertained a motion from the Police Pension Board.
Lawrence Leaf moved to approve accepting Principal 's proposal for the
rates that they put down on the proposal with a commencement date of
February 1, 2013, second by James Morey.
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Council Special Meeting
January 15, 2013
The MOTION CARRIED 3-0-0.
Yes Lawrence Leaf, James Morey, John Tarr
No None
Abstain None
After Mr. Leaf' s motion to accept Principal ' s proposal for the rates
that they put down on the proposal, Mr. Dehner identified the motion
needed to include the final quote indicating a commencement date of
February 1, 2013, at which time Mr. Leaf amended his motion to include
a commencement date of February 1, 2013.
Mayor Thomas then entertained a motion from Council.
Councilman Gene Emter moved to approve accepting the recommendation of
the Employees Pension Board and Police Pension Board to ratify the
quote, the final quote of the Principal Financial Group, effective
February 1, 2013, second by Councilman Michael Ignasiak.
The MOTION CARRIED 4-0-0.
Yes Mayor Michael Thomas, Councilwoman Christine Power,
Councilman Michael Ignasiak, Councilman Gene Emter
No None
Abstain None
Mr. Heinrichs had one additional item for the Boards . As a result of
this transaction it would impact the funding requirements for the
City. He had prepared an actuarial impact statement to file with the
State, which would be an indicator to the City of what the new funding
requirements needed to be. He identified how much the cost would
increase for the Police and General Employees plans . He then passed
out the actuarial impact statement.
3. ADJOURNMENT
There being no further business to discuss, Mayor Thomas adjourned the
meeting at 1 : 18 p.m.
After the meeting was adjourned, the General Employees Pension and
Police Pension boards also adjourned.
Minutes submitted by:
Lisa Bloomer, CMC
Attest: APPROVED:
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Council Special Meeting
January 15, 2013
City of Edgewater, (Florida
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Bonnie Wenzel, City Clerk Micha:l L. T •mas, Mayor
4
Council Special Meeting
January 15, 2013
The Principal Financial Group®
Final Quote
This quote contains only the benefits listed and is based on our interpretation of the
specifications submitted to us. Any deviation from the assumptions and specifications
listed will require further review and may result in repricing or withdrawal of our offer.
Client Name Plan Name(s)
City of Edgewater City of Edgewater Florida General
Employees Plan Contract 4.29487
Contract Liability Date(s) Commencement Date(s)
January 15,2013 February 1,2013
Expected Wire Transfer Date New Contract Number
January 15, 2013 2.20899
Premium;' $1,239,229.01
Prepared By: Freda Hoyt 515-247-6382
January 11,2013 Principal Life Insurance Company
hoyt.freda@principal.com 711 High Street
Team Members: Des Moines,Iowa 50392-0001
Sonja Mcdole 515-362-0438 1-877-492-9830
Jessica Brunsen 515-248-2632 Fax:515-235-5611
Stephanie Turner 515-248-2974
We encourage you to take a look at Principal Financial Group by visiting our web site.
http://www.principal.comfaboutifinancialstrength.htm
Principal``
Important Comments
A+ Aa3 AA- A+
The Principal Financial Group®
Final Quote
This quote contains only the benefits listed and is based on our interpretation of the
specifications submitted to us. Any deviation from the assumptions and specifications
listed will require further review and may result in repricing or withdrawal of our offer.
Client Name Plan Name(s)
City of Edgewater City of Edgewater Florida Police Officer
Plan Contract 4.28312
Contract Liability Date(s) Commencement Date(s)
January 15,2013 February 1,2013
Expected Wire Transfer Date New Contract Number
January 15, 2013 2.20898
Premium:- $1,724,371,64
Prepared By: Freda Hoyt 515-247-6382
January 11,2013 Principal Life Insurance Company
hoyt.freda @principal.com 711 High Street
Team Members: Des Moines, Iowa 50392-0001
Sonja Mcdole 515-362-0438 1-877-492-9830
Jessica Brunsen 515-248-2632 Fax:515-235-5611
Stephanie Turner 515-248-2974
We encourage you to take a look at Principal Financial Group by visiting our web site.
http.iiwww.principal.corniabout/financialstren2th.htm
Principal
Important Comments
A+ Aa3 AA- I A+