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08/15/2006 PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 8/15/2006- 9 :00 AM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the July 18, 2006, Pension Trnstees Meeting as submitted in written summation by the City Clerk. ~ Attachments 3. Pension Trustee Items 3.1 Accept the employees listed below into membership in the City of Clearwater's Employees' Pension Plan. ~ Attachments 3.2 Robert Brnmback, Solid Waste/General Services Department; Lisa Hebert, Police Department; and Rosanne Beck, 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. @ Attachments 3.3 Henry Propheter, Police Department, be allowed to vest his pension under Section(s) 2.397 and 2.398 of the Employees' Pension Plan as approved by the Pension Advisory Committee. @ Attachments 3.4 Approve the recommended administrative expenditures toaling $396,850 for fiscal year 2006-07. @ Attachments 4. Other Business 5. Adjourn Meeting Date:8/15/2006 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the July 18, 2006, Pension Trustees Meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: 1) Clerk TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER July 18, 2006 Unapproved 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 To provide continuity for research, necessarily discussed in that order. althoughnot 2. Approval of Minutes - June 13, 2006 Trustee Jonson moved to approvethe recorded and submitted in written summation by the was duly seconded and carried unanimously. as The motion 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 intheCity 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 movedtoaccept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously. 3.2. Laurel Schultz. Marine&Aviation Department Greaory 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 Advisory 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 of approximately $43,889 per year over the past five years, the formula for computing regular Pension Trustees 2006-07-18 1 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 se.lection 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 creditiseffectiveon August26, 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 formulafoLcomputing 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. Section2.393 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. Olsonqualify under the age 55 and twenty years of service criteria. Ms. Wilson qualifies underthethirtyyears of service criteria. Trustee Doran moved that Laurel Schultz, Marine Recreation Program Supervisor, Marine & Aviation Department, Gregory Olson, Utilities Chemist, PublicUtiIitiesDepartment, and Denise Wilson, Assistant to City Manager, City Manager's Department, be granted a regular pension under Sections2.393 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 Departmentbeallowed to vest her pension underSection(s)2.397 and 2.398 oftheEmplovees' Pension Plan as approved bv the Pension AdvisorvCommittee. Jennifer Jo Skipper, Police Officer, PoIiceDepartment, 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. The Employees' PensionPlan provides that should an employee cease to be an employee of the City of Clearwaterafter 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 eligibilitywhen 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 serviceonDecember 9,2015. Her pension will be effective January 1,2016. This pension was approved by the PAC on June 8, 2006. 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. Pension Trustees 2006-07-18 2 3.4. Approve the conversion of the non-job-connected disabilitv pension of Elizabeth Alvarez to an earlv 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 thetime she retired. One of the criteria for normal retirement for sworn policeandJire 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 areatJeastage 50 with a 3% reduction for each year or portion thereof under the age of 55. Ms. Alvarez rnetthis criteria at the time she retired on her disability pension. On June 8,2006, the PAC approved her request to convertherpension 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. 3.5. Approve a contract with Dahab AssociatesJor$15.000 to perform asmall cap equity manaQer search and Marquette Associates for $18,000 to perform a midcapvalue manaQer search and authorize the appropriate officials to execute same. Recently, the Employee's Pension Plan performed an asset allocation study. That study recommended some changestotheasset allocation oftheplan. Some of the recommended changes require changes to the plan's allowable investments. A voter referendum is scheduled in the nearfutureto approve those changes. However, twooftherecommended changes can be madeatthistime. Those changes are the hiring of a small cap growth manager and a mid cap val ue manager. To assist with these searches, a RFQ{request for qualification) process was used. The first round of the RFQ involvedfirms 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 RFQinvolved the following eight firms: Dahab Associates $15,000; CSG $15,000; Kalson & Associates $16,500; Marquette Assoc. $18,000; Pipich Boucek $20,000; PFM $25,000; Mercer $25,000; and Callan $28,000. The selection committeeranked 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. Concernwasexpressed that finding fund managers is expensive. Cash & Investments Manager SteveMoskunreviewed 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. 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- Pension Trustees 2006-07-18 3 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 pension benefit comparisons. staff is updating 4. Other Business - None. 5. Adjourn The meeting adjourned at 8:29 a.m. Attest: City Clerk Pension Trustees 2006-07-18 4 Meeting Date:8/15/2006 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Accept the employees listed below into membership in the City of Clearwater's Employees' Pension Plan. SUMMARY: Pension Elig. Name, Job. Class, & Dept./Div. Hire Date Date Allan Sychowski, Fire InspectorlFire 5/15/06 5/15/06 Daniel Crider, Rec. ProgrammerIParks & Rec. 5/20/065/20/06 Lawrence Downing, Police OfficerIPolice 5/15/06 5/15/06 Arthur Sarrach, Pub. Util. Tech. IIPU 5/15/065/15/06 Raymond Joline, Pks. Ser. Tech. IIP&R 6/1/06 6/1/06 Douglass Bailey, Police OfficerIPolice 6/12/06 6/12/06 Jason Lambe, Police OfficerIPolice 6/12/06 6/12/06 Bradlee Starks, Police OfficerIPolice 6/12/06 6/12/06 James Hersh, Drftg & Map Tech/Engineering 6/12/066/12/06 Eric Holmes, Pks. Ser. Tech. IIParks & Rec. 6/12/066/12/06 Timothy Booth, Pub. Util. Tech. IIPU 6/12/06 6/12/06 Maurice Bryant, Pub. Ser. Tech. lIPS 6/12/06 6/12/06 Gabriel Nunez, Police Officer/Police 6/12/06 6/12/06 William Nahorodny, Police OfficerIPolice 6/12/06 6/12/06 Timothy McClintick, Rec. Prog.IParks & Rec. 6/12/066/12/06 Marcos Valdez, Police OfficerIPolice 6/12/06 6/12/06 Robert Reedy, Jr., Survey Assistant I/Eng. 6/12/066/12/06 Nicholas Niski, Pks Ser. Tech. IIPks. & Rec. 6/12/066/12/06 Robert Wells, Solid Waste Wkr/Solid Waste 1/23/066/12/06 * April Troyer, Library Assistant/Library 8/22/056/10/06 ** Jamaar Jackson, Solid Waste Wkr/Solid Waste 3/13/06 6/12/06*** Michelle Benjamin, Survey Asst. I/Eng. 6/26/066/26/06 Chaki Hurdle, Solid Waste Wkr/Solid Waste 6/26/06 6/26/06 Harold Godfrey, Gas Technician I/Gas 6/26/06 6/26/06 Ned Pedersen, Human Resource Analyst/HR 6/26/06 6/26/06 Bonnie Potters, Librarian III/Library 6/26/06 6/26/06 Tiffany Adams, Fire MedicIFire 6/26/06 6/26/06 Guy Carosa, Fire Medic/Fire 6/26/06 6/26/06 Monica Juarbe, Fire Medic/Fire 6/26/06 6/26/06 Aaron Reilly, Fire MedicIFire 6/26/06 6/26/06 Jason Samanipour, Fire MedicIFire 6/26/066/26/06 Edward SchultzIFire Prevention Insp./Fire 6/26/06 6/26/06 Kristina Ward-Connole, Fire MedicIFire 6/26/06 6/26/06 * originally employed as temporary on 1/23/06; made permanent and pension eligible as of 6/12/06 ** originally employed as part-time on 8/22/05; transferred to full-time and pension eligible as of 6/10/06 *** originally employed as temporary on 3/13/06; made permanent and pension eligible as of 6/12/06 Review Approval: 1) Clerk Meeting Date:8/15/2006 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Robert Brumback, Solid Waste/General Services Department; Lisa Hebert, Police Department; and Rosanne Beck, 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: Robert M. Brumback, Solid Waste/General Services Director, Solid Waste/General Services Department, was employed by the City on January 4, 1982, and his pension service credit is effective on November 30, 1989. His pension will be effective July 1,2006. Based on an average salary of approximately $95,795 per year over the past five years, the formula for computing regular pensions, and Mr. Brumback's selection of the Joint & Survivor Annuity, this pension will approximate $43,687 annually. Lisa L. Hebert, Police Officer, Police Department, was employed by the City on May 25, 1981, and her pension service credit is effective on that date. Her pension will be effective July 1,2006. Based on an average salary of approximately $57,709 per year over the past five years, the formula for computing regular pensions, and Ms. Hebert's selection of the 100% Joint & Survivor Annuity, this pension will approximate $38,479 annually. Rosanne Beck, Police Officer, Police Department, was employed by the City on October 24, 1983, and her pension service credit is effective on that date. Her pension will be effective August 1, 2006. Based on an average salary of approximately $83,531 per year over the past five years, the formula for computing regular pensions, and Ms. Beck's selection of the 1 0- Year Certain & Life Annuity, this pension will approximate $52,182 annually. These pensions were approved by the Pension Advisory Committee on July 20, 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. 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 Officer as meeting the hazardous duty criteria. Mr. Brumback qualifies under the age 65 and ten years of service criteria. Ms. Hebert and Ms. Beck qualify under the hazardous duty criteria. Review Approval: 1) Clerk Meeting Date:8/15/2006 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Henry Propheter, Police Department, be allowed to vest his pension under Section(s) 2.397 and 2.398 of the Employees' Pension Plan as approved by the Pension Advisory Committee. SUMMARY: Henry Propheter, Systems Programmer, Police Department, was employed by the City on July 27, 1988, and began participating in the Pension Plan on that date. Mr. Propheter terminated from City employment on June 13,2006. 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 reached age 55 and completed twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Mr. Propheter would have completed at least 20 years of service and reached age 55 on August 26, 2008. His pension will be effective September 1, 2008. This pension was approved by the Pension Advisory Committee on July 20, 2006. Review Approval: 1) Clerk Meeting Date:8/15/2006 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the recommended administrative expenditures toaling $396,850 for fiscal year 2006-07. SUMMARY: The Employees' Pension Plan does not have a legal requirement to have a budget. The Trustees must approve all expenditures. The following are routine expenditures that staff is requesting approval for the sake of efficiency. These expenditures involve routine business matters and are mostly small dollar amounts. Printing and binding is for the statutorily required annual information distribution to the members of the pension plan. Postage is for certified mailings required under a new rule passed by the Pension Trustees. Membership dues are for the annual dues for the Florida Public Pension Trust Association. Training is the estimated amount for the mandatory training required by state statute. Travel is the estimated cost for training and due diligence visits. Klausner & Kaufman is our pension attorney firm. Annual attorney's fees also include medical bills that are for the medical services authorized by the Pension Advisory Committee. This is a not to exceed amount. Reimbursement to the General Fund and the Self Insurance Fund is for the cost of the oversight of the Plan and is recognized as revenue to the funds. This reimbursement covers the services provided by Human Resources, Payroll, and Finance Departments. Referendum costs were deferred from last year. Costs are as follows; November or March election ballot (piggyback with County) estimated at $10,000, Stand alone election ballot estimated $60,000. Money manager, safekeeping, actuary, and pension administration fees are all set by contracts approved by the Trustees and are not included here. Type: Current Year Budget?: Operating Expenditure Yes Budget Adjustment: No Budget Adjustment Comments: Current Year Cost: Not to Exceed: For Fiscal Year: 396,850 Annual Operating Cost: Total Cost: 396,850 2006 to 2007 Appropration Code 0646-07410-000000-585 -000- 0000 Amount 396,850 Appropriation Comment various object codes Review Approval: 1) Financial Services 2) Office of Management and Budget 3) Clerk 4) City Manager 5) Clerk 6) City Manager 7) Clerk City of Clearwater Employees' Pension Plan Administrative Expenses Description Printing & Binding Postage Memberships Misc Training Travel Expense Medical Bills Reimbursement to Self Insurance Fund (Human Resources) including physicals Reimbursement to General Fund (Finance & Payroll) Klausner & Kaufman (including Medical Bills) Costs of conducting a Referendum Nov election piggyback $10,000 Standalone election $60,000 Increase/ FY 06/07 FY 05/06 Decrease $ 750 $ 750 0 400 400 500 500 200 750 (550) 5,000 5,000 0 5,000 5,000 0 7,000 (7,000) 88,000 83,000 5,000 87,000 85,000 2,000 140,000 140,000 0 70,000 50,000 20,000 $ 396,850 $ 376,500 $ 20,350