Yosemite - strange behavior for all-day events in iCal

I have been using previous versions of MacOS with my corporate exchange server for quite a while with no issues.  After  the upgrade to Yosemite i have found an odd behavior with inserting all-day events into the exchange calendar.  Same results on MacBook Pro and MacBook Air, both worked fine with Mavericks and now have this issue with Yosemite
My previous workflow was to double click in the upper bar in calendar, open an event in the all-day area, type  in what I wanted to say, select the exchange calendar from the pull down (I have multiple calendars) and the event was done.
Now when I do this when I switch the event to the exchange calendar I get  this error message:
If I select OK the event is then transformed to a 12:00-1:00 meeting and a note is added to the  notes that the time zone isn't right
Note: the meeting does go into the calendar in Pacific time (my default) and I can edit the event back to an all-day and remove the junk from notes and it stores away like it should.  But this is quite annoying
Any suggestions

I have the very same issue. I solved it once somehow but now it's back. I use Plaxo to sync between Outlook-iCal-iPhone and maybe that somehow has confused the phone. Let me know if you find any solutions. I will do the same.

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