05/13/2013 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
May 13, 2013
Present: Chair/Trustee George N. Cretekos, Trustee Doreen Hock-DiPolito,
Trustee Bill Jonson, and Trustee Jay E. Polglaze.
Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City
Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk,
and Nicole Sprague - Official Records and Legislative Services
Coordinator.
To provide continuity for research, items are listed in agenda order although not
necessarily discussed in that order.
1. Call to Order— Chair George N. Cretekos
The meeting was called to order at 1:10 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the April 15, 2013 Pension Trustees meeting as
submitted in written summation by the City Clerk.
Trustee Bill Jonson moved to approve the minutes of the April 15, 2013 Pension
Trustees meeting as submitted in written summation by the City Clerk. The motion was
duly seconded and carried unanimously.
3. Citizens to be Heard re Items Not on the Agenda — None.
4. Pension Trustee Items
4.1 Approve the request of new hires for acceptance into the pension plan as listed.
Pension
Name, Job. Class. & Dept./Div Hire Date Date
Wayne Nelson, Public Utilities Asst Tech, Public Utils Dept 03/11/2013 03/11/2013
Matthew Woloschek, Sr. Systems Programmer, IT Dept 03/11/2013 03/11/2013
Daniel O'Malley, Building Inspector Tech, Planning Dept 03/25/2013 03/25/2013
Peter Tanner, Sr. Systems Programmer, IT Dept 03/25/2013 03/25/2013
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Clyde Walls, Solid Waste Equip Oper, Solid Waste Dept 03/25/2013 03/25/2013
Brian Stees, Solid Waste Equip Oper, Solid Waste Dept 03/25/2013 03/25/2013
Ariel Banacki, CS Account Rep, Cust Service Dept 03/25/2013 03/25/2013
Trustee Doreen Hock-DiPolito moved to approve the request of new hires for
acceptance into the pension plan as listed. The motion was duly seconded and carried
unanimously.
4.2 Approve the request of the following request of employees Martyn H. Baker,
General Services/ Fleet Maintenance Department; Leland Bryant, Public Utilities
Department; Mark Tranter, Gas Systems Department; and Jeffrey Voss,
Planning and Development Department for a regular pension as provided by
Sections 2.416 and 2.424 of the Employees' Pension Plan.
Martyn H. Baker, Mechanic Fabricator, General Services/ Fleet Maintenance
Department, was employed by the City on May 17, 1993 and his pension service
credit is effective on that date. His pension will be effective June 1, 2013. Based on
an average salary of approximately $61,775.34 per year over the past five years,
the formula for computing regular pensions and Mr. Baker's selection of the Life
Annuity, this pension will approximate $34,042.56 annually.
Leland Bryant, Water Distribution Supervisor I, Public Utilities Department, was
employed by the City on November 24, 1986 and his pension service credit is
effective on that date. His pension will be effective June 1, 2013. Based on an
average salary of approximately $57,963.39 per year over the past five years, the
formula for computing regular pensions and Mr. Bryant's selection of the 50% Joint
and Survivor Annuity, this pension will approximate $38,232.72 annually.
Mark Tranter, Gas Supervisor, Gas Systems Department, was employed by the
City on May 9, 1983 and his pension service credit is effective on that date. His
pension will be effective June 1, 2013. Based on an average salary of
approximately $66,107.24 per year over the past five years, the formula for
computing regular pensions and Mr. Tranter's selection of the 50% Joint and
Survivor Annuity, this pension will approximate $51,671.76 annually.
Jeffrey Voss, Building Construction Inspector, Planning and Development
Department, was employed by the City on May 31, 1988 and his pension service
credit is effective on that date. His pension will be effective June 1, 2013. Based on
an average salary of approximately $59,175.24 per year over the past five years,
the formula for computing regular pensions and Mr. Voss's selection of the Life
Annuity, this pension will approximate $36,614.64 annually.
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Section 2.416 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 "non-hazardous
duty". Messrs. Baker, Bryant, Tranter and Voss qualify under the non-hazardous
duty criteria.
Trustee Jay Polglaze moved to approve the request of employee Martyn H. Baker,
General Services/ Fleet Maintenance Department; Leland Bryant, Public Utilities
Department; Mark Tranter, Gas Systems Department; and Jeffrey Voss, Planning and
Development Department for a regular pension as provided by Sections 2.416 and
2.424 of the Employees' Pension Plan. The motion was duly seconded and carried
unanimously.
4.3. Ratify and confirm the retainer agreement between Saxena White, P.A. and the
Employee Pension Plan of the City of Clearwater
The Pension Trustees approved the City of Clearwater Employee Pension Plan as
lead plaintiff in litigation against Maxwell Technologies, Inc at the April 15, 2013
Pension Trustee meeting. This litigation will focus on the recovery of investment
losses sustained by the plan caused by Maxwell's mismanagement.
The Plan Administrator stated at that time that a retainer agreement would be
agreed to with Saxena White, P.A.
The agreement states that this firm is retained to pursue damages and other
relief. It goes on to state that the Attorney's will advance all expenses, the Pension
Plan is not liable to pay any litigation expenses, and recovery of costs and
expenses is contingent upon a recovery being obtained.
Trustee Paul Gibson moved to confirm the retainer agreement between Saxena White,
P.A., and the Employee Pension Plan of the City of Clearwater. The motion was duly
seconded and carried unanimously.
4.4 Annual review of the Employees' Pension Plan investment performance for the
calendar and plan year ended December 31, 2012.
This is the annual presentation on the investment performance of the Employees'
Pension Plan for calendar and plan year ended December 31, 2012.
For the last calendar year, the plan had a return of 13.89%, versus a custom
benchmark of 13.17%.This is a return of 0.72% over the benchmark and a return
of 1.54% over the median public pension plan, placing the plan in the 14th
percentile of public pension plans per the Wilshire Public Plan Sponsor Universe.
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For the last three calendar years, the plan has a return of 10.14%
(annualized) versus a benchmark of 9.50 %. This is an excess return of 0.64%
over the benchmark and placed the plan in the 1st percentile of public pension
plans for this three -year period.
There was one change in money managers over the past year - the termination
of Alethia Research and Management, a large cap value equity manager. Alethia
was replaced with two managers, Eagle Capital and Manning and Napier, who
were funded early in calendar 2013.
All of the current managers in the plan are performing as expected given their
stated investment strategies and investment styles.
Cash and Investment Manager Steve Moskun provided a PowerPoint presentation.
In response to questions, Mr. Moskun said the commercial real estate market is
changing and a reevaluation was performed and if necessary, the City would terminate
the asset manager for underperformance.
Captrust managing advisor Eric Bailey said the return on the real estate market in 2011
was 12.99% and was in the 44th percentile.
5. Other Business — None.
6. Adjourn
The meeting adjourned at 1:28 p.m.
stvoilt n cr �lttios
Chair
Attest _ ®�oF rye : Employees' Pension Plan Trustees
City Clerk
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