07/18/2006
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
July 18, 2006
Present:
Frank Hibbard
Carlen Petersen
William C. Jonson
John Doran
Hoyt Hamilton
Chair
Trustee
Trustee
Trustee
Trustee
Also Present:
William B. Horne, II
Garry Brumback
Rod Irwin
Pamela K. Akin
Cynthia E. Goudeau
Brenda Moses
City Manager
Assistant City Manager
Assistant City Manager
City Attorney
City Clerk
Board Reporter
The Chair called the meeting to order at 8:17 a.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
2. Approval of Minutes - June 13, 2006
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Trustee Jonson moved to approve the minutes of the June 13, 2006, meeting, as
recorded and submitted in written summation by the City Clerk to each Trustee. The motion
was duly seconded and carried unanimously.
Pension Trustee Items
3.1. Accept the employees listed into membership in the City of Clearwater Employees' Pension
Plan.
The PAC (Pension Advisory Committee) recommended the following employees be
accepted into membership in the City of Clearwater's Employees' Pension Plan: Sheri Tully,
Natalye Watts, Gina Hulburt, Christopher Lawrence, Deborah Voigt, Edward Tumber, Sean
Sizemore, Brody Burke, Evelyn Stevens, Maria Del Pilar Jone Suarez, Marianne Gearhart,
Robert Dutton, and John Fahey.
Trustee Petersen moved to accept the recommendation of the Pension Advisory
Committee. The motion was duly seconded and carried unanimously.
3.2. Laurel Schultz. Marine & Aviation Department: Greaorv Olson. Public Utilities Department:
Denise Wilson. City Manaaer's Department. be aranted reaular pensions under Section(s)
2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisorv
Committee.
Laurel Schultz, Marine Recreation Program Supervisor, Marine & Aviation Department,
was employed by the City on September 4, 1985, and her pension service credit is effective on
December 5, 1986. Her pension will be effective January 1, 2007. Based on an average salary
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of approximately $43,889 per year over the past five years, the formula for computing regular
pensions, and Ms. Schultz' selection of the Joint & Survivor Annuity, this pension will
approximate $24,139 annually.
Gregory Olson, Utilities Chemist, Public Utilities Department, was employed by the City
on April 9, 1979, and his pension service credit is effective on August 11, 1979. His pension
will be effective June 1, 2006. Based on an average salary of approximately $46,514 per year
over the past five years, the formula for computing regular pensions, and Mr. Olson's selection
of the Joint & Survivor Annuity, this pension will approximate $34,245 annually.
Denise Wilson, Assistant to City Manager, City Manager's Department, was employed
by the City on February 11, 1974, and her pension service credit is effective on August 26,
1974. Her pension will be effective August 1, 2006. Based on an average salary of
approximately $60,713 per year over the past five years, the formula for computing regular
pensions, and Ms. Wilson's selection of the Life Annuity, this pension will approximate $56,845
annually.
These pensions were approved by the PAC on June 8, 2006. 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. Ms. Schultz and Mr. Olson qualify under the age 55
and twenty years of service criteria. Ms. Wilson qualifies under the thirty years of service
criteria.
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Trustee Doran moved that laurel Schultz, Marine Recreation Program Supervisor,
Marine & Aviation Department, Gregory Olson, Utilities Chemist, Public Utilities Department,
and Denise Wilson, Assistant to City Manager, City Manager's Department, be granted a
regular pension under Sections 2.393 and 2.397 of the Employees' Pension Plan as approved
by the Pension Advisory Committee. The motion was duly seconded and carried
unanimously.
3.3. Jennifer Jo Skipper. Police Officer. Police Department. be allowed to vest her pension
under Section(s) 2.397 and 2.398 of the Emplovees' Pension Plan as approved bv the Pension
Advisorv Committee.
Jennifer Jo Skipper, Police Officer, Police Department, was employed by the City on
December 9, 1995, and began participating in the Pension Plan on that date. Ms. Skipper
terminated from City employment on January 20, 2006.
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The Employees' Pension Plan provides that should an employee cease to be an
employee of the City of Clearwater 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 2.393 (p) provides for
normal retirement eligibility when a participant has completed twenty years of credited service in
a type of employment described as "hazardous duty" and further specifically defines service as
a Police Officer as meeting the hazardous duty criteria. Ms. Skipper would have completed 20
years of service on December 9, 2015. Her pension will be effective January 1, 2016. This
pension was approved by the PAC on June 8, 2006.
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Trustee Petersen moved to allow Jennifer Jo Skipper to vest her pension under
Sections 2.397 and 2.398 of the Employees Pension Plan, as approved by the Pension
Advisory Committee. The motion was duly seconded and carried unanimously.
3.4. Approve the conversion of the non-iob-connected disability pension of Elizabeth Alvarez to
an early retirement pension.
In August 2003, the PAC approved a non-job-connected disability pension for Elizabeth
Alvarez, a Police Officer. In February 2006, Ms. Alvarez contacted the City asking to convert
her disability pension to an early retirement pension for which she was eligible at the time she
retired. One of the criteria for normal retirement for sworn police and fire personnel is age 55
and at least ten years of service. The pension ordinance also provides for early retirement for
sworn personnel if they have completed at least 10 years of service and are at least age 50 with
a 3% reduction for each year or portion thereof under the age of 55. Ms. Alvarez met this
criteria at the time she retired on her disability pension.
On June 8,2006, the PAC approved her request to convert her pension to an early
retirement pension. This change is effective February 1, 2006, since Ms. Alvarez returned to
employment as a sworn police officer on January 30, 2006.
Trustee Doran moved to approve the conversion of the non-job-connected disability
pension of Elizabeth Alvarez to an early retirement pension. The motion was duly seconded
and carried unanimously.
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3.5. Approve a contract with Dahab Associates for $15.000 to perform a small cap eauity
manaaer search and Marauette Associates for $18.000 to perform a mid cap value manaaer
search and authorize the appropriate officials to execute same.
Recently, the Employee's Pension Plan performed an asset allocation study. That study
recommended some changes to the asset allocation of the plan. Some of the recommended
changes require changes to the plan's allowable investments. A voter referendum is scheduled
in the near future to approve those changes. However, two of the recommended changes can
be made at this time. Those changes are the hiring of a small cap growth manager and a mid
cap value manager.
To assist with these searches, a RFQ (request for qualification) process was used. The
first round of the RFQ involved firms that had responded the City's previous RFQ for
performance measurement services and consulting firms that had previously contacted the City.
The second round of the RFQ involved the following eight firms: Dahab Associates $15,000;
CSG $15,000; Kalson & Associates $16,500; Marquette Assoc. $18,000; Pipich Soucek
$20,000; PFM $25,000; Mercer $25,000; and Callan $28,000.
The selection committee ranked Dahab Associates and Marquette Associates as the top
two firms based on criteria: organization of the firm, professional staff, references, their
manager search process, and cost.
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Concern was expressed that finding fund managers is expensive. Cash & Investments
Manager Steve Moskun reviewed the RFQ process. Finance Director Margie Simmons said
staff does not have the in-house expertise to perform equity management searches and
recommended that the due diligence process remain in place.
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Trustee Petersen moved to approve a contract with Dahab Associates for $15,000 to
perform a small cap equity manager search and Marquette Associates for $18,000 to perform
a-mid cap value manager search and authorize the appropriate officials to execute same. The
motion was duly seconded. Trustees Petersen, Jonson, Doran, and Hamilton voted "Aye";
Chair Hibbard voted "Nay." Motion carried.
In response to questions, Human Resources Director Joe Roseto said staff is updating
pension benefit comparisons.
4. Other Business - None.
5. Adiourn
The meeting adjourned at 8:29 a.m.
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