09-01-1999
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Edgewater Police Pension Plan
Board of Trustees
P. O. Box 489
Edgewater, Florida 32132
Minutes
A meeting of the City of Edgewater Police Pension Board was called to order at 1 :00 p.m. on
September 1, 1999 in the City Hall Community Center.
ROLL CALL:
Bret Teitelbaum
Jeanne Delnigro
Ruth Garvey
Larry Loeffler
Gary McElroy
Present
Present
Present
Present
Present
Also present were Mark Cusumano, Principal Representative, Kenneth Hooper, City Manager, Nikki
Clayton, City Attorney, Deborah Sigler, Personnel Director, and JoAnn Richard, Recording
Secretary.
APPROVAL OF MINUTES:
It was decided at the meeting held on June 23, 1999 that since only two (2) members were present
from the last meeting on March 26, 1999 that the minutes couldn't be approved. Officer Teitelbaum
researched Robert's Rules of Order and concluded that according to the rules, the secretary should
read the minutes from that particular meeting and a board member could make a motion at any time
to approve them.
The secretary began reading the minutes, Mrs. Delnigro made a motion to forego the reading of the
minutes from March 26, 1999 with second by Ruth Garvey. Motion CARRIED 5-0.
A motion was made by Mrs. Delnigro to approve the minutes of June 23, 1999 as presented with
second by Larry Loeffler. Motion CARRIED 5-0.
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NEW BUSINESS:
Sgt. Teitelbaum introduced the board members to Mark Cusumano, Principal Representative.
Mr. Cusumano distributed a Summary of Accounts from October 1, 1998 to present to the board
members. He reviewed the progress of the last three quarters of investment performance within the
plan. He emphasized how well the accounts have done since the board chose to adopt the Fund
Selection Service provided by Principal.
Mr. Cusumano explained the specifics concerning each account and the growth, due to the balance
of investments.
Mrs. Delnigro asked Mr. Cusumano ifhe anticipated any problems after the year 2000. He answered
that Principal was "Y2K" ready, and as for the pension plan it is a long term process and business
should be handled as usual.
Sgt. Teitelbaum questioned investing into international stock. Mr. Cusumano explained the different
countries they invest in and how much they invest. He reviewed the sheets supplied and
recommended increasing equities to 40% , but the international investments should be discussed more
among the board members before they decide. Mr. Cusumano referred to the handouts for this
discussion and reviewed the information with the board. He also explained that Principal's
philosophy in investing is to look for a sound investment option.
Mrs. Delnigro questioned the annual fees for Principal's services. Mr. Cusumano stated $2,800.00
per quarter and Jack Ascherl receives $275.00 per quarter.
Sgt. Teitelbaum explained it cost the Pension Board approximately $10,000.00 annually for a fund
of approximately $2,500,000.00, and that was under 1 % for administrative fees.
Sgt. Teitelbaum questioned the board's feelings on investing into equity international funds, and
asked the members to read through the investment policies and be ready to have discussion at the next
meeting.
Nikki Clayton suggested the board ask Principal to prepare an Asset Allocation Model for their plan.
Sgt. Teitelbaum asked Mr. Cusumano to prepare this tool with various scenarios with the new law
into consideration. Mr. Cusumano said he could have this information in approximately three (3)
weeks.
Ruth Garvey stated she thought the board should seek the advice of their attorney on any decisions
they needed to make.
Nikki Clayton agreed the board should consult their own attorney for legal advice but rely on
Principal for investment advice, since it is their expertise.
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Mrs. Delnigro said she took it upon herself to call Attorney Sugarman, and suggested that he attend
a board meeting to review laws, requirements, etc. She stated that he could attend a meeting on
October 5, 1999 since he would be in town on other business.
Mr. Hooper advised the board to present the plan to their attorney for his review concerning pension
laws, state statutes, etc. He said to have Attorney Sugarman put something in writing stating the plan
is in compliance before it goes before the City Council.
Nikki Clayton explained that Pension Fiduciary Liability is being put out for quotes. It will be either
purchased through the City's self insurance fund or with an outside company. There was discussion
with Ms. Clayton regarding the board's exposure and whether this insurance is necessary as well as
the roles of the various individuals involved in the pension process.
OLD BUSINESS:
Sgt. Teitelbaum asked Larry Loefller all the arrangements had been made for him to attend the
upcoming FPPT A conference September 26, 1999.
JoAnn Richard, board secretary stated that everything was in order for his attendance.
Sgt. Teitelbaum stated he would confirm the next meeting date set tentatively for October 5, 1999
with Attorney Sugarman.
ADJOURNMENT
Mrs. Delnigro made a motion to adjourn seconded by Ruth Garvey. Motion CARRIED 5-0.
Meeting was adjourned at 1 :57 p.m.
Minutes submitted by:
JoAnn Richard, Board Secretary