01/11/2001 (2)
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'P,e~sionAdviso~y ,Commi~tee
Minutes
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PENSION ADVISORY COMMITTEE MEETING
CITY OF CLEARWATER
January 11, 2001
Present:
ad an Au,ngst
J. B. Johnson
, Dick Fitzgerald,
Pat Greer
Ed Hart
John Lee,
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Chair/Mayor
Vice' Chair/Commissioner
Committee Member,
Committee Member, "
Committee Member/Commissioner
, Committee Member
Absent:
John Schmalzbauer
Committee Member
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Also Present:
Scott Christiansen
Stepha,n Cypen
Paul Q'Bourke ,
Margie Simmons
Debbie Ford
Brenda Moses
Pension Advisory Committee Attorney
Cypen and Cypen
Human Resources Administrator
Financial Services Administrator
Human Resources Analyst
Board Reporter,
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'The Chair called the meeting to order at 9:30 a.m. at City Hall..
To provide continuity for research. Items are in agenda order although not
, necessarily discussed tn that order. "
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ITEM #2 - Aooroval of Minutes of December'14. 2000
Member Johnson moved to approve the minutes of tile regular meeting of
December 14, 2000, as submitted in written summation to each board member.
The motion was duly seconded and carried unanimously.
ITEM #3 - Emolovees to be heard - None.
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ITEM #4 - Action Items,
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a. Review and Action on Employee Requests for Years of Service Pension
1. Phillip Gatewood - Public Service Technician III. Public Works
2. Peter Verhoeven - Fire Support Manager, Fire Department
Member Johnson moved to approve the request by Phillip Gatewood and
Peter Verhoeven for a Years of Service Pension. The motion was duly seconded
and carrie~ unanimously.
b. Approval of New Hi~es as Plan Members
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" As of January 4, 2001, the City had 1679.27 'FTEs out of 1797.9 budgeted
positions (Including the City Commission).
Member Fitzgerald moved to accept the following employees into
membership In the Pension Plan:
Richard Clayton, Arborist
Maurice Hunter, Parks Svc. Tech. I
Beverly Ice, Police Information Tech II
Christopher Potts, Recreation Supv.
Melanie Hasburgh, Public Info. Coord.
Date of
Emplovment
11/20/00
1 2/04/00
12/04/00
1 2/1 8/00
12/18/00
Pension
Elia. Date
11/20/00
1 2/04/00
1 2/04/00
12/18/00
12/18/00
Public Works
Parks & Recreation
Police
Parks & Recreation
Parks & Recreation
, The motion was duly seconded and carried unanimously.
, ITEM #5 - PendinQ/New Business
a. Neil Arfmann, Hearing on Request for Job-connected Disability Pension
Pension Advisory Committee Attorney Scott Christiansen said the Pension Advisory
Committee (PACI must follow provisions of the Pension Plan with respect to granting and
denying of disability and pensions. The Pension Plan provides that Police and Firefighters
, shall ,be granted disability pension to those members who are permanently and totally
disabled to the ext~nt they cannot perform useful and sufficient service. If those two
criteria are determined, the PAC also must find that non~ of the exclusionary factors exist:
11 The disabilitv was not occasioned by excessive or habitual use of drugs, intoxicants,
alcohol or narcotics; 21 from an injury or disease sustained while willfully and illegally
participating in fights, riots, or insurrections; 31 while committing a crime; 4) by injury or
disease sustained while serving in the armed forces: 5) by injury or disease while
participating 'after his employment as a firefighter or police officer with the City shall have
terminated; or 61 by injury or disease sustained while working for anyone other than the
City and arising out of such employment. There is no evidence that any of those
exclusionary provisions apply to Mr. Arfmann's request. Mr. Christiansen said total
disability is an inability to perform service as a police officer. He referred to a memorandum
from the Deputy Police Chief indicating the Police Department has no light duty position to
, transfer Mr. Arfmann to in order to allow him to perform his duties as a police officer.
Assuming the PAC finds Mr. Arfmann is totally disabled as a police officer, the PAC also
must find that the disability is permanent.
Mr. Christiansen reviewed the medical records provided to the PAC. He said Mr.
. Arfmann has experienced back problems, particularly the cervical region of his spine. He
has had a number of surgeries and fusion. Dr. Hicks' evaluation indicates that Mr.
Arfmann's limitations do not allow him to perform active pollee officer func'tions. Dr.
Moskowitz had performed surgery and fusion. Doctors Sweeney, Cuttler, Piazza, and
Colbasani also submitted letters regarding Mr. Arfmann's condition. Dr. Colbasani's letter
states that Mr. Arfmann's entire cervical spine has been fused and he is unable to continue
to perform his duties as a police officer. An occupational assessment performed indicated
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that Mr. Arfmann's physical status would allow him to perform only at a light duty level.
Police officers are required to perform at a medium to high level duty. Or. Cuttler performed
an IME (independent medical examination) and provided a letter indicating that Mr. Artmann
has reached maximum medical improvement without more surgery. Dr. Cuttler feels he is
disabled from performing the duties of a police officer as indicated in his job description; is
disabled from performing those duties and other duties that would require him to "lift greater
than 15 pounds; and duties that would involve physical activity with the neck. He felt
although Mr. Artmann may benefit from a decompression and proper fusion of the neck;
that procedure would not allow him to perform the functions of a police officer.
Neil Arfmann was present in the event of questions.
HU!Tlan Resources Administrator Paul O;Rourke said Mr. Arfmann was awarded
Officer of the Year two years ago and has a distinguished career as a police officer in
,Clearwater.
Mr. Christiansen said Mr. Arfmann had sustained an injury to his back prior to
employment with the City. Chapter 185 of the Pension Plan does not provide for pre-
eXisting condition exclusions. Mr. Artmann had a physical examination prior to employment
, with the City and was determined to be capable of performing the duties of a police officer'.
A specific injury involving an arrest while employed with Clearwater affected his ability to
continue to do the job. In response to a question; Mr. Christiansen said if Mr. Artmann
accepts future employment commensurate with the function of a police officer; he would
be required to see a doctor to determine his physical status. Should he retuse to see a
doctor for a physical evaluation when requested by the City, his disability could be
discontinued. I-Ie would continue to be subject to recall for duty by the City up to his
retirement age.
Member Lee moved to approve Neil Arfmann's request for a job~connected disability
pension. The motion was duly seconded and carried unanimously.
b. James Kleinsorge - Request to Buy Back Pension Service Credit
Mr. O'Rourke said staff is requesting this item be tabled to the next meeting.
Member Johnson moved to continue Item 5b to the next meeting. The motion was
duly seconded and carried unanimously.
c. Police Chief/De'puty Police Chief Pension Issue
Stephen Cypen, Cypen & Cypen, reviewed his firm's experience. He said the City
has retained him to give a legal opinion regarding Police' Chief Sid Klein and Deputy Police
Chief William Baird's pension requests. He said he has not been lobbied by anyone; does
not know the financial conclusions that would occur as a result of his opinion; and is merely
providing a legal opinion. Mr. Cypen said under a section of Florida Statute 185.15, which
has since been repealed, both the Chief and the Deputy Chief clearly opted not to
participate in the Employees; Pension Plan. Their actions met the Cjty'~ Pension Plan
definition of employees who are in unclassified positions to make arrangements pursuant to
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their contracts, which they did. He said in one case, there is a specific provision
affirmatively stating both employees are not to be included in the Pension Plan. In the other
case, benefits are clearly listed and those not listed would obviously be excluded by
implication.
Andra Dreyfus, representative fOf Police Chief Klein and Deputy Police Chief William
Baird, said she disagrees with Mr. Cypen. She said Chief Klein's first attempt to apply for
inclusion in the Police Supplementary Pension Plan was in the early 1980s. At that time,
the City Attorney rendered an opinion that he may be in the Plan. Ms. Dreyfus said
throughout his career, Chief Klein made attempts for inclusion into the plan. He also was
told in order to participate in the Supplementary Pension Plan, he would have to be a
participant in the Employees' Pension Plan. She said both Chief Klein and Deputy Chief
Baird. are governed under Section 185 of Florida Statutes which deals with sworn Police
Officers' ability to participate in the Supplementary Pension Plan. Ms. Dreyfus said Chapter
185.15 of Florida Statutes states "Any 'person who enters the employment of any
incorporated municipality of the state as a police officer after July '31, 1953, and who does
not'desire to 'accept the provisions of this chapter shall, within twelve months after
employment, notify the officer or board paying the salary of such police officer, in writing,
to that effect. Thereupon, it shall be the duty of the board of trustees to refund from the
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municipal police officer's retirement trust fund the full amount, without interest, withheld
from such police officer's salary and deposit it into such fund. Thenceforward no
withholding shall be made from such salary and all such police officers who have given
such notice shall be barred from participating in the retirement system." Ms. Dreyfus said
neither Chief Klein or Deputy Chief Baird' notified the City that they affirmatively did not
wish to participate in the Employees' Pension Plan. She said this Statute was later
repealed. Chief Klein made good faith attempts via applications to participate in the
Supplementary Pension Plan and was told he may be able to participate. Ms. Dreyfus said
statutory law takes precedence over a City ordinance. She said the City cannot enact an
, ordinance that is contrary to statutory law. She said Deputy Chief Baird was never given
the opportunity to make a decision to make application to the Employees' Pension Plan and
his case should be treated differently than Chief Klein's case. In response to a question,
Ms. Dreyfus said she has documentation of application attempts made by Chief Klein for
the Supplementary Pension Plan. Mr. O'Rourke noted records for such an application are
kept in the Police Supplementary Pension Plan records, not in personnel files.
In response to a question, Mr. Cypen said the records relating to the alleged
applications by Chief Klein would probably confirm his legal conclusion that he was not
eligible for inclusion in to the Employee's Pension Plan.
Mr. Christiansen said there is a substantial file in the Supplemental Pension Plan file
that outlines activity regarding Chief Klein's application years ago. In response to a
question, Mr. Christiansen said the ability to make application to the Supplementary Pension
Plan is contingent upon being in the Employee's Pension Plan.
In' response to a question, Mr. Cypen said he remains of the opinion that there may
have been some specific rights and time limits, which would bolster his opinion. He said his
opinion is based upon the law dictating this result if there had never been an application
before today. He felt previous applications would indicate Chief Klein and Deputy Chief
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Baird sought their rights, were told those'rights did not exist, then did nothing to pursue
them in a timely manner. It was noted that various employment contracts with various City
Managers signed by Chief Klein and Chief Baird indicate their agreement to available
benefits.
It was remarked this matter has been ongoing for some time and a conclusion must
be made. The PAC is an advisory board to the Pension Trustees Committee, who will make
the final decision. It was suggested making a determination and recommendation to the
Pension Trustees today.
, In response to a question, Ms. Dreyfus said her clients do not wish to delay the
PAC's recom~endation for the purpose of providing further documentation.
, Member Hart moved to deny Police Chief Klein's application for inclusion into,the
Supplementary Pension Plan. The motion was 'duly seconded and carried unanimously.
Mr. Cypen requested Ms. Dreyfus clarify which Pension Plan Deputy Chief Baird
, applied to in "998. Ms. Dreyfus said Deputy Chief Baird began work with the Police
Department on February 14, 1998. He worked in another division of the City prior to that
time. She said he was not given the opportunity to participate in the Employee's Pension
Plan at that time, even though Florida Statutes provided him the opportunity to do so as a
sworn police officer. Mr. O'Rourke said the date of Mr. Baird's contract was February 22,
1998, however, the effective date of employment as a police officer was February 14,
1998. Mr. Cypen said by virtue of his contract, Mr. Baird would have been advised of his
rights. It appears there are no requests prior to the most recent request for inclusion into
the, Employees' Pension Plan or the Supplementary Pension Plan bybeputy Chief Baird. In
response to a question, Ms. Dreyfus said Deputy Chief Baird applied for inclusion into the
Employees' Pension Plan last year. She said he was not given the option to participate in
, the plan at the time he transferred fro'm another department. It was noted that his request
was two and a half years after he signed his contract with the former City Manager. Mr.
Cypen, said the definition in the Employees' Pension Plan includes language regarding
exclusion of unclassified police and firefighters as well as other unclassified general
employees. Therefore, Mr. Baird was unclassified in both positions and was never eligible
to participate in the Employees Pension Plan. Ms. Dreyfus disagreed with Mr. Cypsn,
stating Florida Statute provides for Mr. Baird to have the option to participate in the
Employees' Pension Plan. She said Mr. Baird's situation is different than Chief Klein's,
because of the state of the law at the time.' Mr. Baird did not affirmatively turn down the
option to participate in the plan. It was remarked that under Chief Klein's contract, it was
specifically stated that he was not eligible, for the Employees' Pension Plan, however, Mr.
Baird's contract did not mention eligibility or ineligibility. Mr. Cypsn said as the docllments
provided to Mr. Baird did not indicate his eligibility into the Employees' Pension Plan, he
was not eligible.
Member Hart moved to deny Deputy Chief William Baird's request for inclusion in to '
the Employees' Pension Plan. The motion was duly seconded and carried unanimously.
ITEM #6 - Director's Reports
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Mr. O'Rourke said a special election to fill an open PAC seat will be held in March.
Member Greer has, agreed to remain on the PAC until that time.
A" speCial Pension Trustees meeting is scheduled'for 9:00'a.m. on January 25~ 2001"
to discuss Poli~e Chief Sid Klein's pension request.
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ITEM #7 - Committee Mambet':; to be Heard
> Member Greer expressed concern regarding the method of pension choices by
eligible employees' who experience untimely death prior to selection of an option or the
,effective date. The default option that w.ould automatically be awa'rded the employee's
. family would be 100% of the eligible benefits to the spouse for a five-year period, which
would be reduced to 50% thereafter. Mr. O'Rourke said staff will present a number of
'proposed changes to the PAC regarding such matters. In response to a question, he said
staff does not consider changing the Pension Plan every time an unfortunate situation
occurs. It was remarked that the untimely death issue has been discussed previously but, .
not rectified to date.' , ' "
, In response to a question, Mr. O'Rourke said retirees are eligible to continue life
insurance benefits upon retirement by paying the entire premium costs after separation.
. 'ITEM #8 - Adjournment
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The meeting adjourned at ,10:25 a.m.
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Pension Advisory Committee
Attest:
. Y3Ae rfLdrL mOM<)
Board Reporter
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