01-12-2004AGENDA
PENSION
TRUSTEES
AGENDA
Board of Trustees of the Employees' Pension Fund
January 12, 2004 - 9:00 a.m.
1. Call to Order
2. Approval of Minutes: 12/15/03
3. Request for acceptance into membership: Kathy Day, Michael Conroy, Jason Wallace,
Gerard Grace, Darren Pohorenec, Joseph Metz, Chris Topping, Terry Swatzell, Merewyn
Mendenhall and Tarik Jones
4. Regular Pension(s) to be granted: Michael Burke, Alan Mayberry, Joseph Rinaldi and
Thomas Grow
5. Pension(s) to be vested: Millie F. McFadden and Paul Ritz
6. Authorize up to an additional $80,000 to be paid to Klausner and Kaufman increasing the
not to exceed amount from $60,000 to $140,000 for the period 5/12/03 through 9/30/04.
7. Ratify and confirm the termination of Invesco Capital Management, transferring the total
assets held by Invesco of approximately $19 million dollars to Northern Trust the plan
custodian, where they will be distributed to other existing money managers as required to
keep the Plan balanced within our current investment guidelines.
8. Other Business
9. Adjourn
Pe n S'l C-) () '?
City Commission
Clearwater
Agenda Cover Memorandum
Tracking Number: 355 Actual Date: 01/15/2004
Subject Recom.mendation;.
Accept the employees listed below into membership in the City of Clearwater Employees'
Pension Plan.
Sun1mary_
As Trustees of the City of Clearwater Employees' Pension Plan, you are hereby notified that the
employees listed below have been duly examined by a local physician and each has been
designated as a "first class risk." These employees are eligible for pension membership as noted
in the Pension Eligiblity Date column below, and it is the recommendation of the Pension
Advisory Committee that they be accepted into membership.
Pension Elig.
Name, Job. Class, & Dept./Div. Hire Date Date
Kathy Day, Police Communications Operator/Police 10/20/03 10/20/03
Michael Conroy, Recreation Programmer/Parks & Recreation 10/1/03 10/1/03
Jason Wallace, Solid Waste Worker/Solid Waste 11/3/03 11/3/03
Gerard Grace, Parks Service Technician I/Parks & Rec. 11/3/03 11/3/03
Darren Pohorenec, Recreation Programmer/Parks & Recreation 11/3/03 11/3/03
Joseph Metz, Fleet Mechanic/General Ser./Fleet Maintenance 11/17/03 11/17/03
Chris Topping, Tradesworker/General Ser./Bldg. & Maint. 11/17/03 11/17/03
Terry Swatzell, Solid Waste Worker/Solid Waste 11/17/03 11/17/03
Meretvyn Mendenhall, Library Assistant/Library 5/19/03 11/17/03
Tarik Jones, Solid Waste Worker/Solid Waste 11/17/03 11/17/03
originally employed as part-time; status changed to full-time and pension eligible as of
11/17/03
Oric inatin _ Human Resources
Section Consent Agenda
Categ?4ry_ Other
User Det)artment: Budget Office
Public Hearing_No
Financial Infnrmatinn:
jype: Other
Bicl Requir d? No
Bid Excep ions:
Impractical to Bid
Review Approval
_
Clearwater
s.r?..?1-,rte, ,
?.Vf1C?IP. GOIIC?P_aU
Garrv Brumback
City C.o m mission
Agenda Cover Memorandum
per1S ? C-) rn LA
City Com mission
Cieamater
Agenda Cover Memorandum
Tracking Number: 352 Actual Date: 01/15/2004
Subject / Recommendation:
Michael Burke, Equity Services Department; Alan Mayberry, Public Service Department; Joseph
Rinaldi, Police Department; and Thornas Grow, Gas 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:
Michael Burke, Equity Services Manager, Equity Services Department, was employed by the City
on October 25, 1982, and his pension service credit is effective on that date. His pension will be
effective May 1, 2004. Based on an average salary of approximately $51,583 per year over the
past five years, the formula for computing regular pensions, and Mr. Burke's selection of the
10-year Certain & Life Annuity, this pension will approximate $32,501 annually.
Thomas Grow, Gas Supervisor, Gas Department, was employed by the City on August 26, 1975,
and his pension service credit is effective on July 6, 1976. His pension will be effective August
1, 2004. Based on an average salary of approximately $48,325 per year over the past five
years, the formula for computing regular pensions, and Mr. Grow's selection of the Joint &
Survivor Annuity, this pension will approximate $37,273 annually.
William A. Mayberry, Urban Forestry Manager, Public Services Department, was employed by the
City on July 25, 1973, and his pension service credit is effective on January 26, 1974. His
pension will be effective February 1, 2004. Based on an average salary of approximately
$50,478 per year over the past five years, the formula for computing regular pensions, and Mr.
Mayberry's selection of the Joint & Survivor Annuity, this pension will approximate $41,645
annually.
Joseph J. Rinaldi, Police Sergeant, Police Department, was employed by the City on August 12,
1985, and his pension service credit is effective on that date. His pension will be effective
December 1, 2003. Based on an average salary of approximately $76,717 per year over the past
five years, the formula for computing regular pensions, and Mr. Rinaldi's selection of the 100%
Joint & Survivor Annuity, this pension will approximate $37,973 annually.
These pensions were approved by the Pension Advisory Committee on December 11, 2003.
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 thirty years of
credited service, or has reached age 65 and completed ten years of credited service. Section
2.393 also (p) provides for normal retirement eligibility when a participant has completed twenty
years of service in a hazardous duty position or ten years of service and age 55. It provides for
an early hazardous duty retirement with ten years of service and at least age 50 with a 3%
reduction for each year under age 55 to a maximum reduction of 15%. It further specifically
defines service as a Police Sergeant as meeting the hazardous duty criteria. Mr. Burke and Mr.
Grow qualify under the 20 years of service and age 55 criteria. Mr. Mayberry qualifies under
the 30 years of service criteria. Mr. Rinaldi qualifies under the hazardous duty early retirement
criteria.
Originating: Human Resources
Section Consent Aqenda
City Commission
10 Clearwater
Agenda Cover Memorandum
.r-..?vv..r.. i
Category: Other
User Department: Budget Office
Public Hearinq:.No
Fin anr.in I Infnrm it inn-
Type: Other
Bid Required? No
Bid_Exceptions:
Impractical to Bid
Review Approval
C vnrliP C;ntirleatl 01-06-2004 14:16:40
Garrv Rnimhark 12-17-2003 15:26:15
PC iUn
City Co m mission
Cle-anvater
=:. Agenda Cover Memorandum
Tr'aeking Number; 354 Actual Rite:. 01/15/2004
Subject RecomnltJl-dlion:_
Millie F. McFadden, Parks Maintenance Coordinator, Parks & Recreation, and Paul Ritz, Librarian
II, Library Department, be allowed to vest their pensions under Section(s) 2.397 and 2.398 of
the Employees' Pension Plan as approved by the Pension Advisory Committee.
Summary:
Millie McFadden, Parks Maintenance Coordinator, Parks & Recreation Department, was employed
by the City on March 6, 1989, and began participating in the Pension Plan on that date. Ms.
McFadden terminated from City employment on November 3, 2003.
Paul Ritz, Librarian II, Library Department, was employed by the City on September 3, 1985,
and began participating in the Pension Plan on that date. Mr. Ritz terminated from City
employment on October 3, 2003.
The Employees' Pension Plan provides that should an employee cease to be an employee of the
City of Clearwater after completing ten or more years of creditable service (pension
participation), then such employee shall acquire a vested interest in the retirement benefits.
Vested pension payments commence on the first of the month following the month in which the
employee normally would have been eligible for retirement.
Section 2.393 (p) provides for normal retirement eligibility when a participant has completed
twenty years of credited service in a type of employment described as "hazardous duty" and
further- specifically defines service as a Police Officer as meeting the hazardous duty criteria.
Section 2.393 also (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 credited
service, or has reached age 65 and completed ten years of credited service. Ms. McFadden
would have completed twenty years of service and reached age 55 on July 18, 2014. Her
pension will be effective August 1, 2014. Mr. Ritz would have completed twenty years of service
and reached age 55 on April 26, 2007. His pension will be effective May 1, 2007. These
pensions were approved by the Pension Advisory Committee on December 11, 2003.
Originating.. Human Resources
Section Consent Agenda
Cate4ory: Other
User Department: Budget Office
Public Hearing_No
Fina nr.ial In fnrm aIinn,
jype: Other
Bid Required? No
City Corn mission
Clearwater
Agenda Cover Memorandum
f
Bid Exceptions:
Impractical to Bid
Review Approval
Cvndie Goudeau 12-18-2003 11:44:11
Garrv Brumback 12-17-2003 15:24:51
?-? City Commission Pension (00
_._Agenda Cover Memorandum
_M
Tracking Number: 364
Actual Date: 01/15/2004
Subject / Recommendation:
Authorize up to an additional $80,000 to be paid to Klausner and Kaufman increasing the not to
exceed amount from $60,000 to $140,000 for the period 5/12/03 through 9/30/04.
Summary:
This item is for the Pension Trustee meeting.
At the Trustee meeting on May 12, 2003, a legal services agreement with Klausner & Kaufman
was approved which authorized payments to Klausner & Kaufman in the amount not to exceed
$60,000 for the period 5/12/03 through 9/30/04.
Payments from May 12 through November 2003 have equaled $48,397.02.
May 12-29, 2003 $ 975.00
June 2003 4,911.59
July 2003 5,572.74
Aug 2003 5,368.30
Sept 2003 5,277.63
Oct 2003 8,921.12
Nov 2003 17,370.64
Total $48,937.02
These payments include both hourly rates paid to Klausner and Kaufman as well as
reimbursement for expenses incurred on the plan's behalf, such as medical exams, copies, travel
expenses, etc.
It is anticipated that increasing the not to exceed amount from $60,000 to $140,000 will allow
payments to be made to Klausner and Kaufman for the duration of the fiscal year which ends
9/30/04.
Originating: Finance
Section, Consent Agenda
Category: Basic Purchasing Item
User Department: Budget Office
Number of electronic documents attached: 0
Public Hearing: No
Financial Information:
Type: Operating Expenditure
Bid Required? No
° atei City Commission
-C!learw
°' ` _ ??Agenda Cover Memorandum _.....?_w.._..._...?.. N.,
Bid Exceptions:
Sole Source
In Current Year Budget?
Yes
Budget Adjustment:
No
Current Year Cost:
$80,000.00
For Fiscal Year:
10/01/2003 to 09/30/2004
Not to Exceed:
$80,000.00
Appropriations Code Amount
646-07410-530100-585-000 $80,000.00
Review Approval
Carol Barden
Tina Wilson
Garry Brumback
Maraie Simmons
Cvndie Goudeau
Bill Horne
Appropriations Comment
12-17-2003 14:04:18
12-18-2003 09:03:22
12-18-2003 13:25:26
12-17-2003 14:08:20
01-06-2004 13:26:43
12-19-2003 15:22:24
PC1,' S\ Or1 7
City Co m m issio n
Clearwater
;_ Agenda Cover Memorandum
Tracking Number: 387 Actual Date: 01/15/2004
Subject Recommendation:
Ratify and confirm the termination of Invesco Capital Management, transferring the total assets
held by Invesco of approximately $19 million dollars to Northern Trust the plan custodian, where
they will be distributed to other existing money managers as required to keep the Plan balanced
within our current investment guidelines.
Summary:
This item is for the Employee's Pension Plan Trustee Meeting on 1/12/04
For the last year, Invesco has performed at the 70th percentile (one ;)einy the best and one
hundred the worst). For the last tyro years they have performed at the 49th percentile.
However, during this period when we would have thought value-oriented managers would do
well, Invesco has only delivered "average" performance. Additionally, John Rogers, the leader of
the Invesco international discipline when Invesco was hired, has been given more management
responsibilities and it is not likely that lie can devote the attention to the international discipline
that he did when we hired Invesco.
Invesco is currently subject to legal proceedings involving securities and consumer fraud
charges and they are fighting the charges. That battle, our advisors feel, will create an
unnecessary distraction for Invesco.
The Plan's advisors, John Willoughby of Charles D. Hyman and Company, and Paul Troup of
Callan Associates Inc. are recommending that the plan terminate Invesco.
The monies from Invesco will be distributed among the existing money managers to rebalance
the Plan's assets to Domestic Equity 55%, International Equity 5%, and Domestic Fixed Income
40%.
The Plan's attorney, Klausner and Kaufman, PA have been notified of the decision to terminate
Invesco and concurs.
Originating: Finance
Section Consent Agenda
Category: Other
User Depart-neat: Budget Office
Number of electronic documents 0
attached:
Fu Ulic_Heari_ng_No
Financial Inform ation:
Type: Other
Clearwater
Bid Reauired? No
Bi Exce i n
Other
Other Contract?
Terminate contract
Current Year Cost:
$0.00
Review Approval
MarniP Siminnns
Garrv Bnimhark
Cvndie Goudeau
Bill Horne
City Co m mission
Agenda Cover Memorandum
12-30-2003 15:55:03
12-31-2003 07:31:35
01-06-2004 15:19:21
01-05-2004 12:41:20
J