03/17/2008
PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 3/17/2008- 1 :30 PM
1. Call to Order
2. Approval of Minutes
2.1 Approve the minutes of the February 19, 2008 Pension Trustees meeting as submitted in written
summation by the City Clerk.
~ Attachments
3. Pension Trustee Items
3.1 Employees listed below be accepted into membership in the City of Clearwater's Employees' Pension
Plan.
I@l Attachments
3.2 Loretta Keating, Police Department; William Watkins, Fire Department; Hugh Yeager, Fire Department;
David Dopirak, Fire Department; and Joseph TenBieg Police Department, be granted regular pensions
under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory
Committee.
I@l Attachments
4. Other Business
5. Adjourn
Meeting Date: 3/17/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the February 19, 2008 Pension Trustees meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval: 1) Clerk
Cover Memo
Item # 1
Attachment number 1
Page 1 of 5
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
February 19, 2008
Unapproved
Present:
Frank Hibbard
Carlen Petersen
John Doran
George N. Cretekos
Paul Gibson
Also Present:
William B. Horne, II
Jill S. Silverboard
Rod Irwin
Pamela K. Akin
Cynthia E. Goudeau
Patricia O. Sullivan
The Chair called the meeting to order at 10:01
To provide continuity for research, ite
necessarily discussed in that order.
2 - Approval of Minutes
Chair
Trustee
Trustee
Trustee
Trustee
City M
Assista
Assistant
City Attor
City Cle
Board Re
mitted in
rustees meeting of
the City Clerk to each
eeting on August 13, 2007, the Trustees reaffirmed the
to the emerging market sector as recommended in the Asset
also authorized Dahab Associates to assist staff in this search.
st for Qualifications) on their website and contacted firms,
ond to the City's search for an emerging market manager. Dahab
esponses to the RFQ. A summary of the RFQ responses has previously
e Trustees via email.
Staff reviewed the 44 responses and, working with the consultants, narrowed the list to
three firms for final presentations: 1) Eaton Vance Management; 2) JP Morgan Investment
Management; and 3) Wellington Management Company. As a result of the final presentations,
the Pension Investment Committee is recommending the emerging market allocation be split
Pension Trustees 2008-02-19
Item # 1
Attachment number 1
Page 2 of 5
between Eaton Vance and Wellington Management. The committee feels that the performance
of these two companies will complement each other. This will result in lower volatility to the
Pension Plan.
Eaton Vance uses a top-down process to select companies to invest in that is very
structured and quantitative. Wellington uses a process to select companies that i
and very fundamental. Simply put, Eaton Vance believes that the country select'
important factor for performance while Wellington believes that selecti rig
the most important factor for performance. The difference between an
summarized by turnover of their portfolios. The City can expect E nce's po
turnover between 5 to 20% a year while Wellington will turnover a 0% per
Eaton Vance offers a commingled fund that charges 125 basI
Wellington offers a commingled fund that charges 100 bps for the firs
for the next $25 million. Eaton Vance has beaten the MSCI EM be
consecutive years, which is how long the firm has existed. Wellingto
benchmark for seven of the last 10 years.
The following is an annualized summary (G
Last 3 Years
Last 5 Years
Staff is proposing that
the new managers will com
unding for
ton Management as
opriate contracts. The
er for a
eting on A st 13, 2007, the Trustees reaffirmed the Plan's
o REITs as recommended in the Asset Allocation Study. The
ssociates to assist staff in this search. Dahab posted a RFQ
rospective managers. Dahab received a total of 32 responses
es have previously been furnished to the Trustees.
hirty-two responses and with the consultants narrowed the list to four
tions: 1) Adelante Capital Management; 2) FAF Advisors, Inc.; 3) T.
tes, Inc.; and 4) Security Capital Research and Management Inc. As a
result of th Is presentation, the Pension Investment Committee is recommending that
Security Capital Research and Management, Inc. be retained as the REIT manager. The
product that Security Capital offers has a track record of move than ten years. The securities in
the portfolio are selected using a rigorous bottom-up investment process based on three
disciplines: real estate research, company analysis and market strategy.
Pension Trustees 2008-02-19
2
Item # 1
The product has the following average returns:
Security Capital
Benchmark
Since Inception
18.9 %
15.2%
Three-year return
22.5 %
19.7%
Security Capital offers the following two fees restructures: 1) T
fee structure based entirely on the value of the portfolio i.e. 100 bp
next $15 million, 70 bp on next $25 million, and 65 bp on next $25
structure, an account with an average value of $60 million would h
$452,500, and 2) The second structure is a flat fee of 65 bp per an
for $60 million investment), with an annual performance fee equal to
Wilshire Real Estate Security Index (WARESI) out-performance for th
if the account's average value for the year was $60 million and it ou
2.00%, the performance fee for the period would be $60,000, for a to
The Pension Investment Committee recomme
will average into this asset class over time. The fu
rebalancing of the portfolio.
In response to questions, Cash & Inves
be informed immediately if the REIT er I
domestic market and include com d i
complexes.
rove hiring Se
ce based fee
d and carried
er II/General Services
J m. Operator Trainee/Police
Mi e Tech. III/Parks & Recreation
Migu tion Leader/Parks & Recreation
Christo c Utilities Tech. I/Public Utilities
Benjami stomer Service Rep.lCustomer Service
Wendy He er, Recreation Prog. II/Parks & Recreation
Rayshawn Larry, Police CadeUPolice
David Huff, Police Communications Operator Trainee/Police
Indira Witcombe, Police Comm. Operator Trainee/Police
Michelle Mann, Police Comm. Operator Trainee/Police
Pension Trustees 2008-02-19
Attachment number 1
Page 3 of 5
Five-year return
24.5%
2.5%
ch and Management
to sign the appropriate
of Clearwater's
Pension Eligible
Hire Date Date
01/22/08
01/08/08
11/13/07
12/10/07
12/03/07
12/10/07
12/10/07
12/10/07
12/08/07
12/10/07
12/10/07
12/10/07
12/10/07
01/22/08
01/08/08
11/13/07
12/10/07
12/03/07
12/10/07
12/10/07
12/10/07
12/08/07
12/10/07
12/10/07
12/10/07
12/10/07
3
Item # 1
Attachment number 1
Page 4 of 5
Patricia Schauer, Firefighter/Fire
James Stanley, Building Con. Insp.lDev.& Neigh. Services
11/26/07
12/10/07
11/26/07
12/10/07
Trustee Gibson moved to accept the listed employees into membership in the City of
Clearwater's Employees' Pension Plan. The motion was duly seconded and carried
unanimously.
Ralph Basnight, Gas Specialist, Gas Department, was emp
1980, and his pension service credit is effective on that date. His p
August 1, 2008. Based on an average salary of approximately $48,8
five years, the formula for computing regular pensions, and Mr. Basni
& Survivor Annuity, this pension will approximate $37,969 annually.
This pension was approved by the Pension Adviso
Section 2.393 provides for normal retirement eligibility:
and completed twenty years of credited service, ha
or has reached age 65 and completed ten years
under the age 55 and 20 years of service criteri
Trustee Petersen moved tha
pension under Section(s) 2.393 an
Pension Advisory Committee.
e artment be allowed
s' Pension Plan as
erator, Police Department, was employed by the
ating in the Pension Plan on that date. Mr. Uhr
4,2008.
Service Re sentative, Customer Service Department, was
er 24, 1986, and began participating in the Pension Plan on
ed employment with the City of Clearwater on December 21,
empl
ten or
vested in
the month
retirement.
ion Plan provides that should an employee cease to be an
earwater or change status from full-time to part-time after completing
editable service (pension participation), such employee shall acquire a
e retirement benefits. Vested pension payments commence on the first of
ing the month in which the employee normally would have been eligible for
Section 2.393 (p) provides for normal retirement eligibility when a participant has
reached age 55 and completed twenty years of credited service, has completed 30 years of
Pension Trustees 2008-02-19
4
Item # 1
Attachment number 1
Page 5 of 5
credited service, or has reached age 65 and completed ten years of credited service. Mr. Uhr
would have completed at least 20 years of service and reached age 55 on November 20, 2009.
His pension will be effective December 1, 2009. Ms. Courtney would have completed 30 years
of service on November 24,2016. Her pension will be effective December 1,2016. These
pensions were approved by the Pension Advisory Committee on January 10, 2008.
Trustee Doran moved that Alan Uhr, Police Department, and Amy Court
Service Department, be allowed to vest their pensions under Section(s 7 a
Employees' Pension Plan as approved by the Pension Advisory Co . The
duly seconded and carried unanimously.
4 - Other Business
Human Resources Director Joe Roseto introduced Herb McLa
of the Pension Investment Committee.
5 - Adjourn
The meeting adjourned at 10:08 a.m.
Attest:
Pension Trustees 2008-02-19
5
Item # 1
Meeting Date: 3/17/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT I RECOMMENDATION:
Employees listed below be accepted into membership in the City of Clearwater's Employees' Pension Plan.
SUMMARY:
Name, Job Class, and Dept./Div.
Jennifer Bass, Neigh. Ser. Liaison/Dev. & Neigh. Ser.
Elpidio Alamilla, Pks. Ser. Tech. I/Parks & Rec.
Tara Lopez, Cust. Ser. Accounting Rep./Mar. & A viat.
Amelia Cruz, Cust. Ser. Rep./Customer Service
Matthew Magness, Pub. Util. Tech. I/Pub. Util.
Valerie Johnson, Librarian I/Library
David Melton, Pks. Ser. Tech. I/Parks & Rec.
Amira Eltouny, Police Cadet/Police
Donovan Burns, Sr. Marine Lifeguard/Mar. & Aviation
Jerzy Sobczak, WWTP Operator Trainee/Pub. Util.
Sean Ambrose, Pks. Ser. Tech. I/Parks & Rec.
Alex Niesen, Police OfficerlPolice
Hire Date
1/2/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/22/08
1/7/08
Pension
Elig.
Date
1/2/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/7/08
1/22/08
1/7/08
Review Approval: 1) Clerk
Cover Memo
Item # 2
Meeting Date: 3/17/2008
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT I RECOMMENDATION:
Loretta Keating, Police Department; William Watkins, Fire Department; Hugh Yeager, Fire Department; David Dopirak, Fire
Department; and Joseph TenBieg Police Department, be granted regular pensions under Section(s) 2.393 and 2.397 of the Employees'
Pension Plan as approved by the Pension Advisory Committee.
SUMMARY:
Loretta Keating, Police Service Technician Supervisor, Police Department, was employed by the City on November 7, 1988, and
her pension service credit is effective on that date. Her pension will be effective April 1 , 2008.
Based on an average salary of approximately $47,658 per year over the past five years, the formula for computing regular pensions, and
Ms. Keating's selection of the 75% Joint & Survivor Annuity, this pension will approximate $25,639 annually.
William Watkins, Fire Lieutenant, Fire Department, was employed by the City on August 6,1979, and his pension service credit is
effective on that date. His pension will be effective March 1, 2008.
Based on an average salary of approximately $92,540 per year over the past five years, the formula for computing regular pensions, and
Mr. Watkins' selection of the 100% Joint & Survivor Annuity, this pension will approximate $71,675 annually.
Hugh Yeager, Fire Lieutenant, Fire Department, was employed by the City on October 10, 1977, and his pension service credit is
effective on that date. His pension will be effective March 1, 2008.
Based on an average salary of approximately $81,907 per year over the past five years, the formula for computing regular pensions, and
Mr. Yeager's selection of the 100% Joint & Survivor Annuity, this pension will approximate $68,956 annually.
David Dopirak, Firefighter, Fire Department, was employed by the City on August 6,1979, and his pension service credit is
effective on that date. His pension will be effective March 1, 2008.
Based on an average salary of approximately $65,086 per year over the past five years, the formula for computing regular pensions, and
Mr. Dopirak's selection of the 100% Joint & Survivor Annuity, this pension will approximate $51,573 annually.
Joseph TenBieg, Police Sergeant, Police Department, was employed by the City on October 19, 1981, and his pension service credit
is effective on that date. His pension will be effective February 1, 2008.
Based on an average salary of approximately $92,755 per year over the past five years, the formula for computing regular pensions, and
Mr. TenBieg's selection of the 100% Joint & Survivor Annuity, this pension will approximate $67,600 annually.
These pensions were approved by the Pension Advisory Committee on February 14,2008. Section 2.393 provides for normal retirement
eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed thirty years of credited
service, or has reached age 65 and completed ten years of credited service. Section 2.393 also provides for normal retirement eligibility
when a participant has completed twenty years of credited service or has reached age 55 and completed ten years of credited service in a
type of employment described as "hazardous duty" and further defines service as a Fire Lieutenant, Firefighter, and Police Sergeant as
meeting the hazardous duty criteria. Ms. Keating qualifies under the age 65 and 10 years of service criteria. Mr. Watkins, Mr. Yeager,
Mr. Dopirak, and Mr. TenBieg qualify under the hazardous duty criteria.
Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Clerk
Cover Memo
Item # 3