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09/18/1989 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING September 18, 1989 The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at the City Hall, Monday, September 18, 1989 at 9:08 A.M., with the following members present: Don Winner Trustee Lee Regulski Trustee William Nunamaker Trustee Richard Fitzgerald Trustee Absent: Rita Garvey Chairperson Also Present were: Ron H. Rabun City Manager Milton A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk ITEM #2 - Minutes: Trustee Nunamaker moved to approve the minutes of the September 5, 1989 meeting as submitted. The motion was duly seconded and carried unanimously. ITEM #3 - Independent Legal Counsel for Pension Advisory Committee: Pursuant to a work session discussion, the Board of Trustees requested staff research and respond to a request from the Pension Advisory Committee for independent legal counsel. It is the City Manager's recommendation that outside independent counsel not be engaged. The use, if any, of independent counsel should be considered only in significant issues of citywide impact. It is also recommended that such ad-hoc outside counsel be recommended by the City Attorney and City Manager before being retained. The City Manager stated it is important to remember that the Board of Trustees (City Commission) has fiduciary responsibilities for the pension plan and should not allow outside independent counsel to be hired that might very well undermine the Trustees overall responsibility to oversee the pension plan. The City Manager reiterated it is not staff's recommendation to hire a day to day outside independent counsel for the Pension Advisory Committee. It is recommended that, as specific legal needs arise, the Pension Advisory Committee should approach the Trustees to seek approval for independent legal counsel for designated cases. These would be viewed as occurring primarily, but not necessarily exclusively, when the Pension Advisory Committee was called upon to conduct a hearing with respect to findings of fact. The provision of independent legal counsel in such instances would be limited to a specific case and for a specific purpose. H.M. Laursen, Personnel Director, has submitted to the Commission a memo which outlines the Committee's request as well as providing pros and cons of providing the outside counsel. He stated should the Commission decide to hire outside counsel on a day to day basis, the cost could be excessive. John Nicholson, Chairman of the Pension Advisory Committee, stated the Committee also has fiduciary responsibility. He stated the cost would be minimal, and there is some concern regarding the objectivity of the City Attorney, as he works for the City Commission. He stated the State Retirement Commission has independent counsel and the Pension Advisory Committee is not unlike that commission. Discussion ensued regarding the need for independent counsel, and concerns were expressed that this would create a more adverse relationship between the Pension Advisory Committee and the Board of Trustees. Questions also arose regarding whose decision it would be to hire outside counsel when needed. The City Manager stated when outside counsel is needed, staff would make a recommendation to the Trustees for their approval. Further discussion ensued regarding the need for outside counsel, and Mr., Nicholson stated they felt that some of the legal advice provided by the Attorney's Office had been biased and probably wrong. It was stated that providing this outside counsel would create more conflicts and make the pension system less effective. Trustee Regulski moved to accept staff's recommendation that ongoing outside counsel for the PAC not be hired, however, they be retained when needed. The motion was duly seconded. Upon the vote being taken, Trustees Regulski, Nunamaker and Fitzgerald voted "aye". Trustee Winner voted "nay". Motion carried. Discussion ensued regarding proposed changes to the pension plan, and it was stated that staff is still investigating a possibility of entering into a plan with ICMA. He stated he will be working with the Pension Advisory Committee regarding these changes. The general feeling of the Commission was we should move forward regarding amendments to the pension plan. Mr. Nicholson questioned whether or not the Commission had received the proposed changes to the guidelines for the Pension Advisory Committee. The Personnel Director indicated they had been sent out. ITEM #4 - Other Business: None. ITEM #5 - Adjournment: 9:57 A.M.