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PENSION ADVISORY COMMITTEE MEETING
CITY OF CLEARWA'rER
August 2, 2002
Present: Whitney Gray
Hoyt p, Hamilton
. Frank Hibbard
John Lee
John Schmalzbauer
Tom Jensen
Joseph Egger
Also Present: Richard Ebelke
Scott Christiansen
Deborah Ford
Brenda Moses
Acting Chair/Commissioner
Committee Member/Commissioner
Committee Member/Commissioner
Committee Member
Committee Member
Committee Member
Committee Member
Interim Human Resources Director
Pension Advisory Committee Attorney
Human Resources Analyst
Board Reporter
The Acting Chair called the meeting to order at 9:05 8.m, at City Hall,'
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order. '
Pension Advisory Committee Attorney Scott Christiansen said at the July PAC (Pension
Advisory Committee) meeting, a question regarding Pollee Officer Joseph Egger's ability to
serve as the PAC's seventh member was discussed. He said the Pension Plan is silent with
regard to whether or not a City employee can fill the seventh seat, however the City Code of
. Ordinances states that an employee is not permittad to selVe in that position and must be a City
resident. Mr. Christiansen requested City Attorney Pam Akin share her findings regarding this
ISSUE:,
Ms, Akin referred to the section of the City Code of Ordinances that lists the
qualifications of the seventh member. She said the Code clearly delineates how employees are
to serve on boards, In some instances, they are elected, in others they are appointed. Ms, Akin
said after reviewing the Pension Ordinance and the City Code of Ordinances, it appears that the
seventh member of the PAC could not be a City employee, In response to a question, Ms. Akin
. said the PAC appoints the seventh member, It was not an election. Ms, Akin said when the
Commission adopts an ordinance, which is approved by referendum, it does not affect or
change the other ordinances in the Code, She did not see a confHct with the provisions in the
Pension Plan Ordinance versus the Code of Ordinances pertaining to the qualifications of the
seventh member. In response to a question, Ms. Akin said Mr. Christiansen is responsible to
advise tt)e PAC on legal matters.
It was remarked that the former seventh member had selVed in that seat for some time,
When the subject of choosing a seventh member w'as discussed, several City employees
. expressed interest in the opening and no one challenged their ability to run for- the seat.
Concern was expressed that the recently appointed member did not have the opportunity to run
against his opponent in an official election 'and cannot selVe on other boards for which he may
have been interested in applying, It was remarl<ed thallt was unfortunate that a mis-step
occurred and was not corrected prior to the new member being sworn in, It was suggested In
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order to move forward, the City should re-post the openIng and clarify the qualifications
necessary for the position. It was remarked the CIty Clerk's office could help locate interested
partl~s.and C-Vlew TV may be able to post the opening, .
Officer Egger expressed his opinions regarding Ms, Akin's interpretation of the Code and
the Pension plan. Ms, Akin said she would be happy to review any information that he wished
her to review. After his comments, he left the dais at 9:42 a,m,
~iscussion ensued and it was remarked that two attorneys have concurred on the
qualifications of a member. Concern was expressed that current political tensions brought this
issue regarding the seventh member forward. A comment was made that regardless of the
newly appointed seventh member's vocation, the City, the PAC, and the Trustees must follow
the law. In response to a question, Ms. Akin said the potential exists that if the seventh member
is not validly appointed, actions taken by the PAC may be affected,
Mr; Christiansen said should there be a tie vote, the seventh member's validity is
particularly crucial. He said his firm was not involved in the PAC election process. He
reiterated there is nothing in the PAC rules or the Pension Ordinance that speaks to the process
" for a seventh member. He said his firm was not approached about the qualifications of the
'seventh member until the July PAC meeting. It was remarked that the decision to select the
seventh member had been discussed and continued to a future meeting, and that Mr,
Christiansen was present when the postponement occurfed. Mr, Christiansen said an
employee as the seventh member was never an issue at those meetings, Ms. Akin said that
former Humari Resources Administrator Paul O'Rourke did not consult with the Legal
Department in advance of posting the opening for the seventh member, therefore staff was
unable to advise the PAC of any potential conflicts.
Mr. Christiansen said the issue is who decides if the seventh member is ellgible to sit on
the PAC, and whl?ther he continues to serve until the PAC takes action to have him declared
ineligible. It was requested that Ms, Akin's memorandum to Mr, Christiansen, the seventh
member's research of the Code and the Pension Plan, and any other pertinent information, be
provided to all PAC members before a final recommendation is made. The Acting Chair offered
her apologies for the failure of the PAC to follow applicable guidelines.
ITEM #2 - Selection of Chair and Vice-Chair
Consensus was to postpone appointment of a Chair and Vice~Chair until a full board is
present.
ITEM #3 - Approval of Minutes of Julv 11 , 2002
Member Jensen moved to approve the minutes of the regular meeting of July 11, 2002,
as recorded and submitted in written summation to each board member, The motion was duly
seconded and carried unanimously.
ITEM #4 - Emolovees to be heard
T, J. Donnelly said he respects Ms. Akin's determination, but was concerned that her
memo was only presented today to Mr, Christiansen. He said the PAC has always acted in a
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professional manner, but encouraged them to be cautious about their decision regarding the
seventh member Issue~ . :
Steven Sarnoff said he was concerned about the seventh member Issue. as an e-mail
that was sent to all City employees indicated an employee could serve in the seventh seat on
the PAC.
Richard Harris said he felt the newly selected seventh member has been unfairly singled
out. The PAC elected him fairly and now City staff is questioning that election,
ITEM #5 - Action Items
a. Review and Action on Employee Requests for Years of Service Pensions:
1,
2.
3.
4,
Nancy Burgarella, Police
Peter Clare, Engineering
Geraldine Jones, Public Utilities
Mary McCann, Customer Service
Mem~er Hamilton moved to recommend approval of the requests for Years of Service
Pensions. The motion was duly seconded and carried unanimously,
b. Review and Action on Employee ~equests to yest Pensions:'
., <:;,
1.
2. .
Cindi Herald. Solid Waste/General Services
Margaret Schultz, Public Utilities .
u
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Member Jensen moved to recommend approval of the requests to vest pensions: The
motion was dUly seco':1ded and carried unanimously,
c. Approval of New Hires as Plan Members:
As of July 24, 20021 the City had 1729.82 out of 1834.7 budgeted positions; Jarvis
Sheeler w'as originally hired on April 15, 2002. as temporary; status changed to permanent and
pension eligible as of July 1, 2002, Cornelius Legters was originally hired on May 21, 2002, as
temporary; status changed to permanent and pension eligible as of June 29, 2002. '
, ,
, Member Schmalzbauer moved to accept these employees into membership in the
'Pension Plan:
Name. Job, Class. & O'ept./Oiv,
Jarvis Sheeler, Parks Svc. Technician IIParks & Rec,
David Clark, Senior Electrician/Parks & Ree.
John Hunsucker, Sr. Marine Lifeguard/Marine & Aviation
Victor Roberts, Field Svc: Rep.lCustomer Sve,
Karen Sawada, Sr, Rec, Supervisor/Parks & Rec.
Cornelius Legters, Sr, Plans Reviewer/Planning & Dev. Svc.
Hire Date
Pension Elig,
Date
4/15/02
7/1/02 "
6129/02
7/1/02
7/1/02
6/29/02
7/1102
7/1/02
6129/02
7/1/02
7/1/02 .
6/29/02
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Scott Reid, Police RecrulVPolice
Mark Richardson. Sr. Rec. Supervisor/Parks & Rec,
Leah Provost. Police Com. Operator Trainee/Pollee
Elizabeth Westerfield, Accounting Clerk/Gas ,
Carol Larkins, Police Comm, Operator Trainee/Pollee
David Bruneau, Police RecruiUPollce
Aleksander Gregoire, Police RecruiUPolice
Matthew Beery. Pollee RecruiUPollce
ITEM #6 - Pending/New Business
7/15/02
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a. Steven Palmer - Hearing for Non-jab-connected Disability Request
Mr, Christiansen said Steven Palmer is a general employee who falis under specific
rules for disability claims. He reviewed the procedure to process a disability claim, the
applicable criteria, and exclusionary factors the PI\C is to consider.
Mr. Palmer suffered a heart attack in 1995, had a number of surgeries, had another
heart attack in 1996, had three angioplasties, and has been diagnosed with severe coronary
artery disease. He was employed in 1980 as a tradesworker. He had a preemployment
physical, which was found to be within normal limits. Medical records wer'e provided from
doctors at Morton Plant Hospital and Largo Medical Center, The IME (Independent Medical
Examination) doctor indicated that Mr. Palmer is disabled and cannot perform jobs that require
exertion, and that he could only perform part-time desk jobs. The doctor indicated Mr, Palmer
has a significant history of risk factors including smoking heavily for a long period of time, and
weight and family history issues. He further stated the use of cocaine was not related to Mr.
Palmer's heart problems.
In response to a question, Interim Human Resources Administrator Richard Ebelke said
the City has no alternative positions for Mr, Palmer and no part-time desk positions.
Mr. Palmer said he has enjoyed working for the City for 22 years,
Steven Sarnoff, representative for Mr. Palmer, said Mr. Palmer's condition began over
. two years ago. After he experienced health problems, he was placed on light duty for
approximately one year. He was transferred to the Solid Waste Department and can no longer
perform the duties necessary in that position.
, In response to a question, Mr. Ebelke said the City is not contesting this disablllty
application, .
Member Lee moved to recommend approval of Steven Palmer's non-job-connected
disability request. The motion was duly seconded and carried unanimously.
,b. ' Robert Housholder - hearing for Job-connected Disability Request
Mr. Christiansen said Robert Housholder is a firefighter and falls under specific criteria
for disability pensions. He said the procedure for granting a disability claim for a firefighter is the
same as for general employees, however the criteria and exclusionary factors are different.
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Robert Housholder asked if disability pensions include COLAs. Human Resources
Analyst Deborah Ford said COLAS are Include~.
Mr. Christiansen said in September 2001, Mr, Housholder suffered sudden cardiac death
while on the job. He was resuscitated and recovered, He was given cardiac catherltzation.
Doctors indicate he has severe heart disease. He has had angloplasty and an AICD implant to
monitor and restart his heart. In December 2001, a cardiovascular doctor report Indicated that
Mr. Housholder's attack happened as a result of wearing his full suit during the job, The doctor
. stated that heart attack can occur during severe emotional stress. He felt Mr. Housholder's
smoking contributed to his disease, but was not the cause of the attack, The doctor also
, indicated some of Mr. Housholder's limitation, and reported his condition is permanent and is .
not expected to improve. Mr. Housholder cannot be exposed to magnets or magnetic fields.
The IME indicated Mr. Housholder was physically unable to perform as a firefighter due to his
cardiac history and the AICD implant. The report also indicates that Mr. Housholder's disability
is job-connected. Mr. Ebelke said the City is not contesting the claim.
Member Hamilton moved approval of Robert Housholder's job-connected disability
'request. The motion was duly secon'ded and carried unanimously, .
c. Evers Maxie - Set Hearing Date for Non-jab-connected Disability pension
Mr, Ebelke requested Ever Maxie's non-jab-connected disability pension request be
heard at the September 12, 2002, PAC meeting. Consensus was to so schedule,
d.
Laura Davis - Pension Buy back Issue
Ms. Ford 'said Ms, Davis has withdrawn her request to buy back her pension.
e. Discussion of Ordinance to Comply with EGTRRA
Mr" Christiansen referred to an updated version of the changes to the Pension Plan as
required by Federal statute. He reviewed the changes to the ordinance and requested the PAC
make a recommendation to the Pension Trustees Board. In response to a questIon, he said
there are various IRS rules with respect to which Pension Plan funds are taxed and the Cityts
actuary is to track those issues.
Member Jensen moved to recommend approval of the suggested changes to the
ordinance to comply with EGTRRA, The motion was duly seconded and carried unanimously.
, .
Mr. Christiansen said he wanted to make it clear that the changes recommended for
adoption by the PAC were dated July 31,' 2002,
. ITEM #7 - Director's Reoorts - None.
ITEM #8 - Committee Members to be Heard
Member Jensen suggested Pension Plan changes are dead and would not be
co'nsidered. He asked if It were permissible to speak to PAC m~mbers outside this meeting
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regarding that matter. or whether the Sunshine Law would apply. Mr. Christiansen said the
Sunshine Law applies and that Mr, Jensen should not approach PAC members outside the
meetings as there could always be potential issues or items that could come before thePAC.
Mr. Christiansen said he had no knowledge of those items being "dead", as they could still be
considered during negotiations. He saId the PAC could recommend that benefit Issues and the
revisions to the Pension Plan be addressed separately,
. In response to a question, Mr. Ebelke saId the negotiations between the City and the
unions are on hold but would continue. Currently, the IAFF and CWA are In negotiations
regarding a labor contract. The City is willing to continue negotiations at ~ny time,
Member Jensen said the Issue of the seventh member as a resident/employee was
raIsed more than once and no objections were raised. The PAC followed what they thought
was proper procedure at the time that the seventh member was selected, He said the PAC has
heard another interpretation of the Code that is outside ~f the Pension Plan language.
It was suggested once the issue regarding the seventh member is resolved, that the
PAC consider incorporating appropriate language in the Pension Ordinance to clarify the
seventh member's qualificatIons. Mr. Christiansen said it is the PAC's function to make
recommendations to the Board of Trustees with respect to the Pension Plan,
Member Lee said he felt that many questions regarding the seventh member's
qualifications' remain unanswered.
Member Hamilton said the hiformaUon heard at today,s meeting indicates that an
employee could not be appointed to the seventh seat. He said the e-mail from Ms, Marzala on
behalf of Mr, O'Rourke was a mIs-statement, which created a succession of mis-steps whIch
need to be corrected,
Member Hibbard said this is an Issue regarding interpretation of the law, not the vocation
of the newly selected seventh member. He said although he felt it unfortunate that the seventh
member was unable to participate in the PAC election, the law must be followed with respect to
the seventh member position.
Member Schmalzbauer felt current political tensions have prompted this issue regarding
the seventh member's qualifications.
Member Gray said she had concerns regarding the selection of the seventh member
when the topic first arose and should have voiced her concerns at that time, She said Finance
Director Margie Simmons' decision to advise the PAC of the potential conflict regarding an
employee serving as the seventh PAC member should be respected. She said she expects
staff to advise the,PAC and other entities of potential conflicts such as this one. She said .
mistakes are made In other lines of work and steps are taken to ensure conflicts do not occur in
the future. She expressed embarrassment that this unfortunate situation has occurred.
Mr. ChrIstiansen saId regardless 'of whom is currently in the seventh seat, the PAC must
follow the law.
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. Mr. Christiansen said thereJ~'nothlng that speak~ to the Finance Dlre~tor.'s role. ' ' ,
regarding the PAC. The'Soa.rd of Trustees' rules state the Finance Director shall serve as the , '
Treasurer to the Trustees; Discussion ensued and It was"suggested that further dIscussion 15
neeeed regarding the Finance Director's official capaclty to the PAC, Mr. Christiansen said ~e .
supports City'staff bringing forward Information that would help the PAC co'mply with the law, .
, Mr; Christiansen reminded PAC members to file their Form 1 Financial Disclosure
Forms,
ITEM #9 - Adjournment '
" The meeting adjourned at 10:59 B.m,
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