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07-17-2000 '-" ....., Edgewater Police Pension Board Regular Meeting Monday, July 17,2000 4:09 p.m. Minutes CALL TO ORDER: Chairman Teitelbaum called the Police Pension Board Meeting to order on Monday, July 17,2000 at 4:09 p.m. in the City Hall Conference Room. ROLL CALL: Members present were: Chairman Bret Teitelbaum, Ms. Rene Green, and Mr. Larry LoeIDer. Chairman Teitelbaum advised the board that he received a letter from Mr. David Muth stating he resigned from the board. Corp. Gary McElroy arrived at 4:18. Also present were Jack Ascher!, Consulting Agent of Record, Kara Koch, Principal Representative, Kenneth Hooper, City Manager, Deborah Sigler, Personnel Director, Robin Matusick, Legal Assistant and Donna Looney, Recording Secretary. APPROVAL OF MINUTES: The minutes from May 17, 2000 Regular Meeting were submitted for approval. Mr. LoeIDer made a motion to approve the minutes, seconded by Ms. Green. Motion CARRIED 3-0. NEW BUSINESS: Chairman Teitelbaum referred to the copy of the Quarterly Fund Statement for June 30, 2000. Mr. Ascher! introduced Ms. Kara Koch and she explained her position with Principal as our local contact. Mr. Ascherl explained that we have the Fund Selection Service with Principal where they diversify our investments. He went on to explain that the U.S. Stock account is now closed out and that money is now half in Large Company Growth and half in Large Company Value. Mr. Ascherl reviewed the returns on each investment option. Chairman Teitelbaum asked about investments in CD's. Ms. Koch and Mr. Ascherl explained retirement investing. Mr. Ascherl informed the board that we have not received the 1999 Actuarial Valuation Report. Principal is waiting on the changes from October 1,1999 and the State requirements that also have to be done. Principal has said they will do the 1999 Actuarial Valuation now as if no changes were done in order to get our State monies. Then as soon as we make the changes they will prepare the 2000 Actuarial Valuation with the proper changes made. Those changes made technically for October 1, 1999 will be retroactive ~ ...., to that date whenever they do the Actuarial in 2000. The changes in the State requirements will be done as of January 1. Mr. Ascher! has talked to the State about this and they said it is okay to do it that way. Mr. Ascherl expects the 1999 report to be done in a few weeks. Chairman Teitelbaum asked when the individual member statements would be coming. Mr. Ascher! said we would have to send a letter with the statements telling them the information does not include any changes as of October 1, 1999. The one that comes out after October 2000 will reflect all of it. Mr. Ascher! explained to Ms. Koch that the City has an attorney drawing up the changes and they will send it to Principal for them to look it over and make sure they understand it. Principal will prepare the amendment, send it back here and Council adopts it. Chairman Teitelbaum referred to a letter he received a few days ago from legal assistant, Robin Matusick, reference the changes in the amendments Mr. Ascherl just talked about. He asked City Manager Hooper if his understanding is correct that the City wants the board attorney, Mr. Sugarman, to prepare the amendments in ordinance form with strike through and underlines and have it sent back for the City to review and present to CounciL City Manager Hooper confirmed that was how it has been. Chairman Teitelbaum told the board that he has spoken with Mr. Harrison, the attorney from Sugarman and Susskind, who is handling this matter and it is going to take some time for him to get this together. Chairman Teitelbaum would like the board to consider that they are getting to the point now where it may be more cost effective to have the board attorney on a retainer bases verses an hourly bases. Chairman Teitelbaum said first thing they need to do is draw up these proposed changes and would like to entertain the appropriate motion to direct Mr. Sugarman's office to do that as soon as possible. Ms. Matusick advised that she spoke with Mr. Harrison on Friday and what Chairman Teitelbaum needs to recommend to the board is two basic authorizations. One to get the ordinance through now with the modifications that need to be made and then as soon as that is done the codification for the new statutory requirements needs to be done. There was discussion about Principal being able to talk about these changes with the board attorney. Ms. Koch said Principal would need a letter from the board authorizing them to talk with the board's attorney. Corp. McElroy made a motion to authorize the board's attorney to draft the changes per Ms. Matusick's memo and to send a letter to Principal authorizing them to discuss the matters with the board attorney, seconded by Mr. Loefller. Motion CARRIED 4-0. 2 ... ..."", Mr. Loeffier asked about the retainer with Mr. Sugarman verses the hourly rate. Chairman Teitelbaum said he could discuss with Mr. Sugarman what would be more cost effective and then get back with the board at the next meeting. OLD BUSINESS: Chairman Teitelbaum asked City Manager Hooper for an update on Larry Westfall, stating that he understands there was discussion between the City and the attorney for Mr. Westfall. City Manager Hooper stated that is not correct, he has not received anything since their last meeting. City Manager Hooper stated he took the board's comments to Council. Councilwoman Lichter was on the Council at the time it had been voted on. Her opinion was that it did not apply to those who were not active members. City Manager Hooper described his understanding of it because he negotiated it and Gary Conroy's opinion of it, which was the Chairman at the time. Council would just as soon not bring it back up, because they are under the understanding that it only applied to active participants. Mr. Westfall's attorney should contact the City attorney if they thought there was a problem. After further discussion City Manager Hooper handed Chairman Teitelbaum a copy of the minutes from the June 5, 2000 council meeting. Chairman Teitelbaum asked what the intent of Council was. City Manager Hooper said Council has taken the opinion that Principal is right in saying it doesn't apply. Chairman Teitelbaum asked that copies of the minutes be sent to Mr. Sugarman since the Council discussed this situation in order to give appropriate direction to the board. A lengthy discussion took place as to who is correct in their opinion and what responsibility the board has in the matter. Corp. McElroy commented that he agrees the board has administered the plan as it was written, therefore the board does not have to go back to Mr. Sugarman. Chairman Teitelbaum asked Ms. Matusick if Mr. Sugarman's office has a copy of the minutes. Ms. Matusick response was no, but he is already aware of the way the ordinance reads and that it was not the intent to include Larry. Chairman Teitelbaum verified with Ms. Matusick that Mr. Harrison knows to prepare the ordinance accordingly. Mr. Ascherl explained what will happen is when communication takes place between Principal and Mr. Sugarman's office, Principal will give them the language and how to write it so it is very clear. Chairman Teitelbaum said that was fine and let Mr. Sugarman's office and Principal work it out. Chairman Teitelbaum states in order to pull the board out of this entirely, he confirms with Ms. Matusick that their has not been any problem with communication between the City and Mr. Sugarman. He states the board can leave this alone and let this whole rewrite be resolved between Principal, the City and Mr. Sugarman's office. Chairman Teitelbaum states he will send the copy of the minutes along to Mr. Sugarman just so he has them and just leave it at that. He is also going to send the minutes from the last few meetings. 3 ~ ...., Corp. McElroy asked Mr. Ascherl about purchasing time for prior police experience. Mr. Ascherl explained how some other cities are doing this and after some discussion told the board he will check into it and bring the information back to the next meeting. NEW BUSINESS: (cont.) Chairman Teitelbaum asked Mrs. Green if she could tell the board about the conference she attended in Naples. She explained the one seminar she attended talked about not getting involved in taxes whatsoever, do not get involved in anything other than just administering the plan. She stated that another one she attended was the trustee's responsibility and she got a very good book on it. She said that while she was listening she tried to relate to what was going on with Larry, and as far as the board getting involved with Larry getting paid, she learned that they shouldn't be involved at all. Chairman Teitelbaum said that is why they are going to turn the whole thing over to Mr. Sugarman's office and he will be able to communicate freely with Principal and the City and they can get the whole thing hammered out in a form everyone can understand. Mrs. Green stated the board needs to stay out of it as much as they possibly can. She shared some of the handouts she received, and stated she felt it was worth while attending. Chairman Teitelbaum stated there is a school October 2nd through the 4th 2000 at the Wyndham's Casa Marina in Key West and asked if Corp. McElroy would be interested in attending. Corp. McElroy stated he would like to go. Mr. Loeffler made a motion to send Corp. McElroy to Trustees school, seconded by Ms. Green. Motion CARRIED 4- O. OLD BUSINESS: (cont.) Ms. Green asked if they are covered by the cities liability insurance. Her concern is about a board member being in an automobile accident or something of that nature while they are performing a board duty. Chairman Teitelbaum does not know, he will get the answer. Mr. Loeffler mentioned they do not have liability insurance for somebody suing them. Chairman Teitelbaum ask Mrs. Green about fiduciary insurance. He thinks it's about $1500 and is checking with one other company. She would like another agent to take care of this since she is on the board. After further discussion Chairman Teitelbaum said he would get some figures and if necessary call a special meeting. Ms. Sigler stated there's a city policy to cover all board members, it's a liability policy to defend but she does not know all the details. Chairman Teitelbaum asks for her to get all the details and let him know. Chairman Teitelbaum asked that due to the time they table the discussion on disability procedures to the next meeting. There was discussion on setting the date and time for the next board meeting. Meeting is scheduled for Wednesday, October 11,2000 at 4:00 p.m. -l ..." .." ADJOURNMENT: With no further business Chairman Teitelbaum entertained a motio~ Corp. McElroy made a motion to adjou~ without any objections Chairman Teitelbaum adjourned the meeting at 6:04 p.m. Minutes submitted by: Donna Looney Recording Secretary 5