12/15/2008PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 12/15/2008- 1:00 PM
1. Call to Order
2. Approval of Minutes
2.1 Approve the minutes of the November 3, 2008 Pension Trustees meeting as submitted in written
summation by the City Clerk.
1B Attachments
3. Pension Trustee Items
3.1 Approve a contract with Callan Associates to conduct an asset allocation study at a cost of $30,000.
1B Attachments
3.2 The employees listed below be accepted into membership in the City of Clearwater's Employees' Pension
Plan.
1B Attachments
3.3 Doris Tennell, Police Department; Lawrence Dowd, Parks and Recreation Department; and Robert Jones,
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.
ID Attachments
4. Other Business
5. Adjourn
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date: 12/15/2008
SUBJECT / RECOMMENDATION:
Approve the minutes of the November 3, 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 2
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
November 3, 2008
John Doran
George N. Cretekos
Paul Gibson
William B. Horne, II
Jill S. Silverboard
Rod Irwin
Pamela K. Akin
Cynthia E. Goudea
Patricia O. Sullivan
The Chair called the meeting to order at 1
To provide continuity for research, i
necessarily discussed in that order.
2 -Approval of Minutes
Frrustees meeting of
the City Clerk to each
La zke, PI anning 09/08/08
Todd Po ' r/Police 08/18/08
Jeffrey fficer/Police 08/18/08
Paul Co e Officer/Police 08/18/08
Kim Kilian, ce Officer/Police 08/18/08
Nicole Vitadamo, Police Communications Operator Trainee/Police 09/15/08
Yvette Martinez, Police Communications Operator Trainee/Police 09/15/08
Shannon Lang-Cirillo, Police Comm. Operator Trainee/Police 09/15/08
Patricia Morin, Lead Parking Attendant/Engineering 09/15/08
Pension Trustees 2008-11-03
09/08/08
08/18/08
08/18/08
08/18/08
08/18/08
09/15/08
09/15/08
09/15/08
09/15/08
Item # 1
Awaiting approval
Present: Frank Hibbard Chair
Carlen Petersen Trustee
Blake Maxfield, Parks Service Technician I/Parks & Recreation
John Otte, Solid Waste Worker/Solid Waste
unanimously.
The meeting adjourned at 1
Pension Trustees 2008-11-03
Attachment number 1
Page 2 of 2
09/29/08 09/29/08
09/29/08 09/29/08
Item # 1
Trustee Doran moved to accept the listed employees into membership in the City of
Clearwater's Employees' Pension Plan. The motion was duly seconded and carried
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve a contract with Callan Associates to conduct an asset allocation study at a cost of $30,000.
Meeting Date: 12/15/2008
SUMMARY:
The Pension Trustees authorized staff to do a search for a consultant to perform an asset allocation study for the Employees Pension
Plan.
A Request for Proposal (RFP) was created and sent to over 100 pension plan consultants. The investment media also carried news of
this search. As a result of this wide publicity, the city received eighteen responses to the RFP.
A RFP committee was created which included the following:
Finance Director
Assistant Finance Director
Cash and Investments Manager
Debt and Special Projects Manager
Citizen Representative to the Pension Investment Committee
The following is the committee's ranking of the top five firms. Callan Associates was the highest scoring firm with four of the five
members on the committee ranking them as their first choice.
Callan Associates
Asset Consulting Group
Segal Advisors
Burgess Chamber & Associates
Cap Trust
Callan Associates will examine all of the various investments options and determine what is the best asset allocation for our pension
plan that will provide the highest rate of return given our risk tolerances as well as to protect the pension plan's assets in all markets.
The fee to perform the Asset Allocation Study is $30,000. This fee is below the average fee that the plan was quoted by the other
respondents to the RFP. Staff checked with other consultants and found the fee to be very competitive.
Type:
Other
Current Year Budget?: None
Budget Adjustment Comments:
Current Year Cost:
Not to Exceed:
For Fiscal Year:
Appropration Code
$30,000
2008 to 2009
Amount
Budget Adjustment:
Annual Operating Cost:
Total Cost:
Appropriation Comment
Cover Memo
0646-07410-530100-585- $30,000
000-0000 Item # 2
Review 1) Financial Services 2) Office of Management and Budget 3) Legal 4) Clerk 5) Assistant City Manager 6) Clerk 7) City
Approval: Manager 8) Clerk
None
$30,000
Page 1 of 1
CALLAN -.4-U -10
Paui V. Troup
Executive Vice President
November 25, 2008
SAN FttANCISGO
vr:,V YORK Mr. Steve Moskun
City of Clearwater Pension Fund
~rnra4,o
Finance Dept., Municipal Services:Bldg.
ai,.a4rr:t 100 South. Myrtle Avenue, 3rd.Floor, East End
Clearwater, FL 337565520.
DE-VU
Dear Steve:.
As requested, Callan :is pleased to. agree to a modification of the Contract between Callan and the
City of Clearwater dated March 1, 2005: Callan will deliver an Asset Allocation Study for a fe.e.not
to exceed $30,000 as outlined in the Response to RFQ 28-08.
We look forward to completing this assigm-rent.
Best Regards,
Paul V. Troup
By the signatures affixed below, the above Agreement is hereby accepted as to all the terms and
conditions.
_.7
Callan Associates Inc.
11/26/2008
Date
Countersigned:
BOARD OF TRUSTEES OF THE EMPLOYEES'
PENSION PLAN OF THE arY OF
CLEARWATER, FLORIDA
By:
Frank V. Hibbard
Chairperson
Attest:
Cynthia E. Goudeau
City Cleric Item # 2
XG:U.S..IiP[.-ltPARI i'VAN', 1.119f'1iO,A][.AtJrA,nEoi4M 0339. 'r1-IJ'11I,f0,4fi71;1- Iff:140 FACSIKi#I.1.7"t.bjki?#•ti
Attachment number 2
Page 1 of 6
CITY OF CLEAR WA TER
RFQ 28-08
Pension Investment Allocation Study
REQUEST FOR QUALIFICATIONS (RFQ) PROCEDURES
1. RF s:
The RFQs may be submitted electronically or by hard copy.
For hard copy:
Please submit six (6) copies, including sample asset allocation report,
submitted in an envelope, clearly identified as "Proposal for Pension Asset
Allocation Study," and mailed to:
George McKibben
Purchasing Manager
City of Clearwater
PO Box 4748
Clearwater, Florida 33758-4748
Or delivered to:
George McKibben
Purchasing Manager
3rd Floor
100 South Myrtle Avenue
Clearwater, Florida 33756-5520
Electronically:
To: george.mckibben@myclearwater.com
The RFQs are due no later than 4:OOPM EDT, July 14, 2008.
RFQ Response Forms:
Each item/question must be answered separately and specifically. Please reference
the question number or restate the question in your response. A sample of an
asset allocation study must be included. More than one sample is allowable.
Item # 2
Attachment number 2
Page 2 of 6
Additional supporting material may be provided. The City reserves the right to
reject any or all RFQ's.
3. Questions and Additional Information:
Requests for clarification or additional information should be submitted in writing
to:
Mail: George McKibben
Purchasing Manager
P.O. Box 4748
Clearwater, Florida 33758-4748
FAX: (727) 562-4635
Email george.mckibben@myclearwater.com
Responses will be in writing and copied to all proposers as addenda to this RFQ.
All information requests must be submitted five (5) business days before the RFQ
is due.
4. RFQ Schedule:
June 12, 2008 Distribution of Request for Qualifications
July 14, 2008 All sealed RFQs must be in the hands of the City's
Purchasing Manager by 4:00 p.m. Electronic submittals
must also be received by 4:00 p.m., EDT.
TBD Pension Investment Committee/RFP committee makes
recommendation
TBD Trustee's make award
5. Selection Criteria:
The following criteria will be used to evaluate RFQ responses to create a short
list. The recommended candidate will come from this short list and oral
presentations may be used.
• 0 - 20 points- Firm and Staff Qualifications
• 0 - 20 points- Proposed Fee
Item # 2
Attachment number 2
Page 3 of 6
• 0 - 20 points- Asset Allocation Study Process and Final Product
• 0 - 20 points- Relevant Experience
• Total possible score of 80 points.
Once the initial ranking is completed, reference checking will be done and the following
additional points will be added:
• 0 - 20 points- References
• Total possible score of 100 points
6. Right To Protest:
Any actual or perspective proposer who is aggrieved in connection with the
solicitation or award of a contract may seek resolution of his/her complaints by
contacting the Purchasing Manager.
7. Openness of Procurement Process:
Written competitive proposals, other submissions, correspondence, and all records
made thereof, as well as negotiations conducted pursuant to this RFQ, shall be
handled in compliance with Chapters 119 and 286 Florida Statutes. The City
gives no assurance as to the confidentiality of any portion of any proposal once
submitted.
8. No Collusion:
By offering a submission to the RFQ, the proposer certifies the proposer has not
divulged to, discussed or compared his/her competitive proposal with other
proposers and has not colluded with any other proposers or parties to this
competitive proposal whatsoever.
9. Informality Waiver/Reiection of Bids:
The City reserves the right to reject any or all responses and to waive any
irregularity, variance or informality whether technical or substantial in nature, in
keeping with the best interests of the City.
10. RFQ Expenses Statement:
All vendor costs associated with this RFQ will be the responsibility of the vendor.
Item # 2
Attachment number 2
Page 4 of 6
11. No Correction:
Once a competitive proposal is submitted, the City shall not accept any request by
the proposer to correct errors or omissions in any calculation or competitive price
submitted.
SCOPE OF ASSET ALLOCATION STUDY
The City of Clearwater is currently looking for a financial consultant to conduct an asset
allocation study. The purpose of the study is to determine what the appropriate asset
allocation for the pension plan is to maximize its rate of return with an acceptable level of
risk. The following is the plan's current target allocation.
Domestic Equity 42%
Small Cap Value 5%
Small Cap Growth 7%
Mid Cap Value 5%
Mid Cap Growth 5%
Large Cap Value 10%
Large Cap Growth 10%
International Equity 18%
EAFE 10%
Emerging Markets 8%
Domestic Fixed Income 30%
REITS 10%
The pension plan may invest in investments authorized by Florida Statutes 112.661,
175.071, 185.06 and 215.47. The following are the key restrictions on the plan:
International Exposure
Fixed Income
Alternative Investments
Maximum 25%
Minimum 30%
Maximum 5%
The plan has assets of $610 million. The actuary assumed rate of return is 7.5%. For the
last twenty years the plan has an average return of 9.78%.
Item # 2
Attachment number 2
Page 5 of 6
The ratio of assets at market value to the actuarial value of accumulated plan benefits is
131%. (Assets/present value of accumulated benefits)
All proposers are required to answer the following questions. Do not use marketing
materials to answer questions.
A. Questions
1. Year organization was founded.
2. How many years has your organization been conducting asset allocation
studies?
3. Location(s) of headquarters and branch offices.
4. Describe the ownership structure of your organization.
Within the past three years, have there been any significant developments in
your organization (changes in ownership, personnel reorganization, etc.)? If
so, please describe.
6. Do you anticipate any near-term changes in your organization's basic
ownership structure or any other significant changes in your organization? If
so, please explain.
7. Are you a registered investment adviser with the SEC under the Investment
Advisers Act of 1940? If not, what is your fiduciary classification?
8. Does your firm or an affiliate provide money management services? If so
please describe.
9. Is your firm or an affiliate a broker/dealer?
10. Does your firm trade for client accounts through this broker/dealer?
11. Does your firm accept soft-dollars as a method of payment for services
provided?
12. Has your organization or any officer or principal been involved in any
business litigation or other legal proceedings relating to your consulting
activities? If so, provide a brief explanation and indicate the current status.
13. Explain in detail any potential for conflict of interest, which would be created
by this assignment.
Item # 2
Attachment number 2
Page 6 of 6
14. Are there any circumstances under which you receive fees from investment
managers? If yes, please describe.
15. Do you have a code of ethics? Please include a copy.
16. Provide the names of all professionals who would work on the asset allocation
study. Include their experience with asset allocations studies and in financial
consulting/advising services in general.
17. Who will the primary contact be?
18. Provide four client references that the primary contact has worked with.
Preference is for governments that have had asset allocation studies. Include:
name, phone, asset values, and years the client has retained the firm, and
product or service the client uses. Include at least three government clients.
We may contact any of these clients as references. If the firm requires
advance notice of our intention to make inquiries, please indicate.
19. Detail your asset allocation study process.
16. What is your projected return for an asset class based on?
17. What data do you have on the accuracy of your projections?
18. What asset classes will you include in the study? What asset classes if any
will you not include in the study and why?
19. Describe the database you will use for this asset allocation study.
20. What fee would you charge for the asset allocation study? This fee would
include two trips to Clearwater to meet with the Pension Investment
Committee and one trip to meet with the Trustee's. This fee would be all-
inclusive including all the travel costs listed above and telephone
conferences. Please submit the fee in the following format:
Asset Allocation Study
Travel
Other
Total
21. If any additional trips were necessary to Clearwater what would be the
additional cost?
Item # 2
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date: 12/15/2008
SUBJECT / RECOMMENDATION:
The employees listed below be accepted into membership in the City of Clearwater's Employees' Pension Plan.
SUMMARY:
Pension
Name, Job Classification, and Department/Division Hire Date Elig Date
Lori Hovatter, Econ. Dev. Specialist/Economic Dev. 12/11/06 10/11/08
Vicente Anglero, Solid Waste Worker/Solid Waste 10/13/08 10/13/08
Gary Edwards, Parking Enforcement Specialist/Engineerin g 10/13/08 10/13/08
Dawn Walser, Police Com. Operator Trainee/Police 9/15/08 9/15/08
Robert Morig, Systems Analyst/Finance 10/13/08 10/13/08
Edith Coppersmith, Cust. Ser. Rep./Customer Service 9/29/08 9/29/08
Karen Wiseman, Custodial Worker/Parks & Recreation 10/11/08 10/11/08
Matthew Jackson, Planner III/Planning 10/27/08 10/27/08
Tim Charles, Public Utilities Technician I/Public Utilities 10/27/08 10/27/08
Chad Siple, Senior Marine Lifeguard/Marine & Aviation 10/27/08 10/27/08
* originally hired on 12/11/06; transferred to pension eligible position effective 10/11/08
Review Approval: 1) Clerk
Cover Memo
Item # 3
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Meeting Date: 12/15/2008
Doris Tennell, Police Department; Lawrence Dowd, Parks and Recreation Department; and Robert Jones, 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:
Doris Tennell, Personnel/Payroll Technician, Police Department, was employed by the City on May 16, 1994; and her pension
service credit is effective on that date. Her pension will be effective January 1, 2009.
Based on an average salary of approximately $34,286 per year over the past five years, the formula for computing regular pensions, and
Ms. Tennell's selection of the Joint & Survivor Annuity, this pension will approximate $13,776 annually.
Lawrence Dowd, Assistant Parks and Recreation Director, Parks & Recreation Department, was employed by the City on
November 18, 1972, and his pension service credit is effective on August 6, 1975. His pension will be effective February 1, 2009.
Based on an average salary of approximately $84,067 per year over the past five years, the formula for computing regular pensions, and
Mr. Dowd's selection of the 50% Joint & Survivor Annuity, this pension will approximate $80,086 annually.
Robert Jones, Police Captain, Police Department, was employed by the City on May 27, 1980, and his pension service credit is
effective on that date. His pension will be effective November 1, 2008.
Based on an average salary of approximately $90,689 per year over the past five years, the formula for computing regular pensions, and
Mr. Jones' selection of the 100% Joint & Survivor Annuity, this pension will approximate $68,921 annually.
These pensions were approved by the Pension Advisory Committee on November 13, 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 Police Captain as meeting the hazardous
duty criteria. Ms. Tennell qualifies under the age 65 and ten years of service criteria. Mr. Dowd qualifies under the 30 years of service
criteria. Mr. Jones qualifies under the hazardous duty criteria.
Review Approval: 1) Clerk
Cover Memo
Item # 4