11/17/2003 (2)
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.... .',PENSION
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'. . B~ard of Trustees of the Employees ~ ,
, . , Pension' Fund,
Minutes
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ACTION AGENDA - CLEARWATER PENSION TRUSTEES MEETING
Monday, November17, 200~ - Commission Chambers
1. Call to Order -'1 :22 p.m.
,2. Approval of Minutes: 'October 13, 2003 - Approved as submitted.
, 3. Request for acceptance into membership: ' Pasquale Calabrese. Joel Conklin,_Frank
McCollister, Freda Dixon, Billie Kirkpatrick, Veri Emrick, John Stone, Lynne Johnson, Robert
Lane, Suzanne Wakefield, Charles Thornton, Niki Cushing, Sherry Watkins, Christianha
Kretschmann. Robert Reagan. - Approved as submitted. '
4. Reoular Pension(s) to be oranted: Ezekiel Taylor, John Richter, and Kenneth Emerson. -',
Approved as submitted. .
,5. Approve the contract with Dodqe & Cox as fixed income managers for the Employee's
Pension Plan - Approved as submitted.
6. Other Business - None.
7. Adiourn - 9:06 a.m.
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Pension Trustees Action Agenda 2003-11-17
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Also. Present:
William B. Horne II
Garry Brumback
Pamela K. Akin
Richard Ebelke
Cynthia E. Gou'deau
Brenda Moses
City Manager
Assistant City Manager
City Attorney
Assistant Human Resaurces Directar
City Clerk
Board Reporter
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
November 17. 2003
Present:
Brian Aungst
Hoyt Hamilton
Whitney Gray
Frank Hibbard
William C. Janson
Chair
Vice-ChairfTrustee
Trustee
Trustee
Trustee
The Chair called the meeting to. arder at 9:04 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not
~ecessarlly discussed in that order.
2. Approval of Minutes: October 13, 2003
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Trustee Janson moved to. approve the minutes of the Octaber 13, 2003. meeting,
as recorded and submitted in written summation by the City Clerk to. each Trustee. The
motion. was duly secanded and carried unanimo.usly.
3. Request for acceptance into. membership: Pasquale Calabrese. Jael Conklin,
Frank McCollister. Freda Dixen, Billie Kirkpatrick. VerI Emrick. John Stone, Lynne
Johnsan, Robert Lane, Suzanne Wakefield. Charles Thornton. Niki CushinQ, Sherry
yvatkins, Christianna Kretschmann. Robert Reaqan.
Assistant Human Resources Directar Richard Ebelke presented the
recommendatian af the PAC (Pension Advisory Cammittee) to approve membership for
emplayees: Pasquale Calabrese, Joel Conklin. Frank McCollister, Freda Dixon, Billie
Kirkpatrick, Veri Emrick, John Stane, Lynne Johnson, Robert Lane, Suzanne Wakefield,
. Charles Thornton, Niki Cushing, Sherry Watkins, Christianna Kretschmann, and Robert
Reagan. .
Trustee Gray moved to. accept the recommendatian af the Pensian Advisary
Cammittee. The motion was duly seconded and carried unanimo.usly.
4. Regular Pension(s) to. be granted: Ezekiel Tavlar, John Richter. and Kenneth
Emerson.
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Mr. Ebelke presented the recommendatian of the Pension Advisory Committee
that Ezekiel Taylar, Jahn Richter, and Kenneth Emersan be granted regular pensions
under Section(s) 2.393 and 2.397 of the Emplayees' Pensian Plan as approved by the
Pension Advisary Committee.
Pension Trustees 2003-11-17
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Ezekiel Taylor, Solid Waste Equipment Operator, Solid Waste Department, was
employed by the City on September 26, 1973, and his pension service credit is effective
on that date. His pension will be effective October 1, 2003. Based on an average salary
of approximately $38,304 per year over the past five years, the formula for computing
regular pensions, and Mr. Taylor's selection of the 100% Joint & Survivor Annuity, this
pension will approximate $31,082 annually.
, John Richter, Senior Planner, Public Works Department, was employed by the
City on July 5, 1977, and his pension service credit is effective on that date. His pension
will be effective November 1, 2003. Based on an average salary of approximately
$61,250 per year over the past five years, the formula for computing regular pensions,
and Mr. Richter's selection of the 1000/0 Joint & Survivor Annuity, this pension will
approximate $43,047 annually.
Kenneth Emerson, Wastewater Treatment Plant Operator C, Public Utilities
Department, was employed by the City on December 6, 1973, and his pension service
credit is effective on that da:te. His pension will be effective January 1, 2004. Based on
an average salary of approximately $37,867 per year over the past five years, the
formula for computing regular pensions, and Mr. Emerson's selection of the 50% Joint &
Survivor Annuity. this pension will approximate $29,466 annually.
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These pensions were approved by the Pension Advisory Committee on October
9, 2003. Section 2.393 (p) provides for normal retirement eligibility when a participant
has reached age 55 and co'mpleted twenty years of credited service, has completed
thirty years of credited service, or has reached age 65 and completed ten years of ,
credited service. Mr. Richter qualifies under the 20 years of service and age 55 criteria.
Mr. Taylor qualifies under the 30 years of service criteria. Mr. Emerson qualifies under
the 20 years of service and age 55 and 30 years of service criteria.
Trustee Hibbard moved to grant regular pensions for Ezekiel Taylor, John
Richter, and Kenneth Emerson, as approved by the Pension Advisory Committee. The
motion was,duly seconded and carried unanimously. . '
5. Approve the contract with Dodoe & Cox as fixed income manaqers for the
Employees' Pension Plan.
The Trustees previously authorized Callan Associates to conduct a search for a ,
fixed income manager.
The following is a list of fixed income managers that Callan recommended to the
Investment Committee:
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Dodge & Cox (D&C)
Western Asset Management Co. (WAMCO)
Pacific Investment Management Co. (PIMCO)
Baird Advisors
Bane One Investment Advisors
Black Rock
Barrow, Handley, Mawhinney & Strauss, Inc
Deutsche Asset Management
Evergreen Investments
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Hartford Investment Management Co.
Richmand Capital Management
Weiss, Peck & Greer
Wells Capital Management
After reviewing the information pro,!ided on the above managers. the Investment
Committee ranked the managers and conducted interviews with the,top three firms listed
above.
Based upon the interviews, Dodge & Cox and Western Asset Management were
ranked as the top two firms. Representatives from the Investment Committee visited the
top two managers. Dodge & Cox is a bit more conservative in their investment style and
the committee felt that Dodge & Cox fit better into the city's goals and objectives.
The Investment Committee recommends to the Trustees that they hire Dodge &
Cox. The Investment Committee recommends that Dodge & Cox be funded at $75
million with the funds coming from the Northern Trust Lehman Index Fund. The Northern
,Trust Lehman Index Fund is where the funds were placed after the termination of EPW
and Sirach.
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, Dodge & Cox charges a money management fee based upon the amount
invested and will result in the fee of ,25 of 1 % for $75 million. Additional amounts above
the $75 million will be charged at .150/0 of 1 % up to a total of $135 million. We estimate
the fees to be approximately $200,000 annually and will vary base9 upon the market
value of the funds managed. This fee is consistent with industry norms.
, Klausner and Kaufman. the Plan's Attorney's have reviewed the contract.
Trustee Hamilton moved to approve the contract with Dodge & Cox as fixed
income managers for the Employees' Pension Plan. The motion was duly seconded
and carried unanimously.
6. Other Business - None.
7. Adiourn
The meeting adjourned at 9:06 a.m.
Attest:
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((t.t".~.'r~City e
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Pension Trustees 2003-11-17
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