06/18/20131. Call to Order
2. Approval of Minutes
PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 6/18/2013- 9:00 AM
2.1 Approve the minutes of the May 13, 2013 Pension Trustees meeting as submitted in written summation by
the City Clerk.
� Attachments
3. Citizens to be Heard re Items Not on the Agenda
4. Pension Trustee Items
4.1 Approve the request of the new hires for acceptance into the Pension Plan as listed.
� Attachments
4.2 Approve the recommended pension plan expenditures for fiscal year 2014, totaling $321,000.
� Attachments
4.3 Approve the request of the following employees Ozell George, Engineering Department; Marjorie
Doucette, Finance Department; Robert Barry, Parks and Recreation and Brian Dewitt, Police Department;
for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan.
� Attachments
4.4 Approve the request of employee Christopher L. Housholder of the Police Department to vest his pension
as provided by Section 2.397 of the Employees' Pension Plan.
� Attachments
5. Other Business
6. Adjourn
Pension Trustees Agenda
Council Chambers — City Hall
SUBJECT / RECOMMENDATION:
Meeting Date:6/18/2013
Approve the minutes of the May 13, 2013 Pension Trustees meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval:
Cover Memo
Item # 1
Attachment number 1 \nPage 1
TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
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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.
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1. Call to Order — Chair Georqe N. Cretekos
The meeting was called to order at 1:10 p.m. at City HaIL I
2. Approval of Minutes
2.1 Approve the minutes of the April 15, 2013 Pension Trustees meeting as
submitted in written summation by the Citv 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
Pension Trustees 2013-OS-13 1
Item # 1
Attachment number 1 \nPage 2
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.
Pension Trustees 2013-OS-13 2
Item # 1
Attachment number 1 \nPage 3
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 14tn
percentile of public pension plans per the Wilshire Public Plan Sponsor Universe.
Pension Trustees 2013-OS-13
Item # 1
Attachment number 1 \nPage 4
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 1 St 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 44t" percentile.
5. Other Business — None.
6. Adjourn �
The meeting adjourned at 1:28 p.m.
Attest
City Clerk
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Chair
Employees' Pension Plan Trustees
Pension Trustees 2013-OS-13 4
Item # 1
Pension Trustees Agenda
Council Chambers — City Hall
SUBJECT / RECOMMENDATION:
Approve the request of tbe new hires for acceptance into the Pension Plan as listed.
SUMMARY:
Pension
Name, Job. Class, & Dept./Div. Hire Date Eli .� Date
Shannon Hight, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013
William Billups, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013
Michael Remillet, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013
Elizabeth Pierce, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013
James Desaulniers, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013
Justin Smith, Fire Medic, Clearwater Fire and Rescue Dept. 04/06/2013 04/06/2013
Justin Suhanovsky, Fire Medic, Clwtr Fire and Rescue Dept. 04/06/2013 04/06/2013
Logan Cruz, Fire Medic, Clearwater Fire and Rescue Dept. 04/06/2013 04/06/2013
Yusupha Touroy, Stormwater Technician I, Engineering Dept. 04/06/2013 04/06/2013
Amanda Kirkpatrick, Rec Leader I, Parks and Rec Dept. 04/06/2013 04/06/2013
Kelly Pierce, Police Comm Oper Trainee, Police Dept. 04/22/2013 04/22/2013
Daniel McKnight, Cust Service Rep, Customer Service Dept. 04/22/2013 04/22/2013
Karey Glass, Solid Waste Worker, Solid Waste Dept. 04/22/2013 04/22/2013
Jesus Rolden Trejo, Tradeswarker, General Services Dept. 04/22/2013 04/22/2013
Leviticus McKinnon, Sold Waste Warker, Solid Waste Dept. 04/22/2013 04/22/2013
Review Approval:
Meeting Date:6/18/2013
Cover Memo
Item # 2
Pension Trustees Agenda
Council Chambers — City Hall
SUBJECT / RECOMMENDATION:
Approve the recommended pension plan expenditures for fiscal year 2014, totaling $321,000.
SUMMARY:
Meeting Date:6/18/2013
The Employees' Pension Plan does not have a legally required annual budget. However, the Trustees must approve all
expenditures. The following are routine expenditures that staff is requesting approval of for administrative efficiency.
The recommended expenditures for fiscal year 2014 reflect an $11,000, or 3.3%, decrease from the fiscal year 2013
expenditures of $332,000. This decrease is primarily due to elimination of $15,000 included in the 2013 expenditures
for the pension plan referendum.
Training and travel are for the estimated costs of pension training and related travel, including fiduciary training for the
trustees and Pension Advisory Committee (PAC) members. This is a not—to-exceed amount given uncertainty regarding
the number of trustees and PAC members that may elect to attend training conferences.
Reimbursement to the General Fund is for the cost of oversight and administration of the Plan, recognized as revenue
to the General Fund. The reimbursement is for services provided by Human Resources, Payroll, and Finance personnel
The firm of Klausner, Kaufman, Jensen and Levinson serves as the Plan's pension attorney. Annual attorney fees also
include medical bills for medical services authorized by the PAC.
Money manager, performance measurement consulting, safekeeping, and actuary fees are all governed by contracts
separately approved by the Trustees, and are not included in this agenda item amount.
Type:
Operating Expenditure
Current Year Budget?: No
Budget Adjustment Comments:
Current Year Cost:
Not to Exceed:
For Fiscal Year:
Appropration Code
0646-07410-Sxxxxx
$321,000
2014 to
Amount
$321,000
Budget Adjustment:
Annual Operating Cost:
Total Cost:
Appropriation Comment
!�
$321,000
Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk
Cover Memo
Item # 3
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Pension Trustees Agenda
Council Chambers — City Hall
Meeting Date:6/18/2013
SUBJECT / RECOMMENDATION:
Approve the request of the following employees Ozell George, Engineering Department; Marjorie Doucette, Finance Department;
Robert Barry, Parks and Recreation and Brian Dewitt, Police Department; for a regular pension as provided by Sections 2.416 and 2.424
of the Employees' Pension Plan.
SUMMARY:
Ozell George, Stormwater Supervisor II, Engineering Department, was employed by the City on April 5, 1982 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 $67,937.31 per year over the past five years, the formula for computing regular pensions
and Mr. George's selection of the 75% Joint and Survivor, this pension will approximate $45,747.12 annually.
Marjorie Doucette, Payroll Services Manager, Finance Department, was employed by the City on June 24, 1985 and her pension
service credit is effective on that date. Her pension will be effective July 1, 2013.
Based on an average salary of approximately $75,443.52 per year over the past five years, the formula for computing regular pensions
and Ms. Doucette's selection of the Joint and Survivor Annuity, this pension will approximate $62,258.16 annually.
Robert Barry, Administrative Support Manager, Parks and Recreation Department, was employed by the City on September 24,
1979 and his pension service credit is effective on that date. His pension will be effective July 1, 2013.
Based on an average salary of approximately $65,287.81 per year over the past five years, the formula for computing regular pensions
and Mr. Barry's selection of the Joint and Survivor Annuity, this pension will approximate $60,615.24 annually.
Brian Dewitt, Police Officer, Police Department was employed by the City on July 8, 1993 and his pension service credit is effective
on that date. His pension will be effective August 1, 2013.
Based on an average salary of approximately $72,963.19 per year over the past five years, the formula for computing regular pensions
and Mr. Dewitt's selection of the 100% Joint and Survivor Annuity, this pension will approximate $39,56928 annually.
Section 2.416 provides for normal retirement eligibility for non—hazardous duty employees hired priarto the effective date of this
reinstatement (1/1/13), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the
age of 55 years and completed twenry (20) years of credited service; the date on which a participant has reached age sixty five (65)
years and completed ten (10) years of credited service; or the date on which a member has completed thirty (30) years of service
regardless of age. For non—hazardous duty employeeshired on or after the effective date of this restatement, a meinber shall be eligible
for retirement following the earlier of the date on which a participant has reached the age of sixty (60) years and completed twenty five
(25) years of credited service; or the date on which a participant has reached the age of sixty five (65) years and completed ten (10)
years of credited service. Mr. George, Ms. Doucette and Mr. Barry meet the non—hazardous duty criteria
Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible far retirement
following the earlier of the date on which the participant has completed twenty (20) years of credited service regardless of age, or the
date on which the participant has reached fifty five (55) years and completed ten (10) years of credited service. Mr. Dewitt meets the
hazardous duty criteria.
Review Approval:
Cover Memo
Item # 4
Attachment number 1 \nPage 1
Recommend approval of the following request of employees Ozell George, Engineering Department;
Marjorie Doucette, Finance Department; Robert Barry, Parks and Recreation and Brian Dewitt, Police
Department; for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension
Plan.
Ozell George, Stormwater Supervisor II, Engineering Department, was employed by the City on
April 5, 1982 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 $67,937.31 per year over the past five years, the formula
for computing regular pensions and Mr. George's selection of the 75% Joint and Survivor, this pension
will approximate $45,747.12 annually.
Marjorie Doucette, Payroll Services Manager, Finance Department, was employed by the City on
June 24, 1985 and her pension service credit is effective on that date. Her pension will be effective
July 1, 2013.
Based on an average salary of approximately $75,443.52 per year over the past five years, the formula
for computing regular pensions and Ms. Doucette's selection of the Joint and Survivor Annuity, this
pension will approximate $62,258.16 annually.
Robert Barry, Administrative Support Manager, Parks and Recreation Department, was employed
by the City on September 24, 1979 and his pension service credit is effective on that date. His pension
will be effective July 1, 2013.
Based on an average salary of approximately $65,287.81 per year over the past five years, the formula
for computing regular pensions and Mr. Barry's selection of the Joint and Survivor Annuity, this pension
will approximate $60,615.24 annually.
Brian Dewitt, Police Officer, Police Department was employed by the City on July 8, 1993 and his
pension service credit is effective on that date. His pension will be effective August 1, 2013.
Based on an average salary of approximately $72,963.19 per year over the past five years, the formula
for computing regular pensions and Mr. Dewitt's selection of the 100% Joint and Survivor Annuity, this
pension will approximate $39,569.28 annually.
Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to
the effective date of this reinstatement (1/1/13), a member shall be eligible for retirement following the
earlier of the date on which a participant has reached the age of 55 years and completed twenty (20)
years of credited service; the date on which a participant has reached age sixty five (65) years and
completed ten (10) years of credited service; or the date on which a member has completed thirty (30)
years of service regardless of age. For non-hazardous duty employees hired on or after the effective
date of this restatement, a member shall be eligible for retirement following the earlier of the date on
which a participant has reached the age of sixty (60) years and completed twenty five (25) years of
credited service; or the date on which a participant has reached the age of sixty five (65) years and
completed ten (10) years of credited service. Mr. George, Ms. Doucette and Mr. Barry meet the non-
hazardous duty criteria.
Item # 4
Attachment number 1 \nPage 2
Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall
be eligible for retirement following the earlier of the date on which the participant has completed twenty
(20) years of credited service regardless of age, or the date on which the participant has reached fifty
five (55) years and completed ten (10) years of credited service. Mr. Dewitt meets the hazardous duty
criteria.
Item # 4
Pension Trustees Agenda
Council Chambers — City Hall
Meeting Date:6/18/2013
SUBJECT / RECOMMENDATION:
Approve the request of employee Christopher L. Housholder of the Police Department to vest his pension as provided by Section 2397
of the Einployees' Pension Plan.
SUMMARY:
Christopher L. Housholder, Police Officer, Police Department, was employed by the City on April 29, 1996, and began
participating in the Pension Plan on that date. Mr. Housholder terminated from City employment on April 10, 2013.
The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change
status from full-time to part-time after completin�en or more years of creditable service (pension participation), such employee
shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following
the month in which the employee normally would have been eligible for retirement.
Section 2.416 provides for hazardous duty normal retirement eligibility when a participant has completed twenty (20) years of
credited service regardless of their age, or the date on which the participant has reached the age of fifty five (55) years and
completed ten (10) years of credited service. Mr. Housholder would have completed at least 20 years of service on April 29,
2016.
Review Approval:
Cover Memo
Item # 5
Attachment number 1 \nPage 1
Recommend approval of the request of employee Christopher L. Housholder of the Police Department to vest his
pension as provided by Section 2.397 of the Employees' Pension Plan.
Christopher L. Housholder, Police Officer, Police Department, was employed by the City on April 29, 1996,
and began participating in the Pension Plan on that date. Mr. Housholder terminated from City employment on
April 10, 2013.
The Employees' Pension Plan provides that should an employee cease to be an employee of the City of
Clearwater or change status from full-time to part-time after completing ten or more years of creditable service
(pension participation), such employee shall acquire a vested interest in the retirement benefits. Vested pension
payments commence on the first of the month following the month in which the employee normally would have
been eligible for retirement.
Section 2.416 provides for hazardous duty normal retirement eligibility when a participant has completed twenty
(20) years of credited service regardless of their age, or the date on which the participant has reached the age of
fifty five (55) years and completed ten (10) years of credited service. Mr. Housholder would have completed at
least 20 years of service on April 29, 2016.
Item # 5