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10/13/2014 Pension Trustees Meeting Minutes October 13, 2014 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 e d s w r' �mu Meeting Minutes Monday, October 13, 2014 1 :00 PM Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes October 13, 2014 Roll Call Present 5 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee Jay E. Polglaze, Trustee Bill Jonson, and Trustee Hoyt Hamilton Also Present: William B. Horne 11 - City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City Attorney, and Rosemarie Call - City Clerk To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. 1. Call To Order— Chair Cretekos The meeting was called to order at 1:03 p.m. 2. Approval of Minutes 2.1 Approve the minutes of the September 15, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Hock-DiPolito moved to approve the minutes of the September 15, 2014 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 Regarding Items Not on the Agenda — None. 4. New Business Items 4.1 Approve the new hires for acceptance into the Pension Plan as listed. Name, Job. Class, & Dept./Div. Pension Elig. Date Stacie VanNostrand, Devel Review Tech I, Planning and Dev. Dept. 07/28/2014 Patrick Shackton, Parks Service Technician I, Parks and Rec Dept 08/04/2014 James Pleasant, Recreation Leader, Parks & Recreation Department 08/09/2014 Kelly Callihan, Communications Operator, Police Department 08/11/2014 Tracy Garcia, Communications Operator Trainee, Police Department 08/11/2014 Gregory Seymour, Communications Operator, Police Department 08/11/2014 Page 2 City of Clearwater Pension Trustees Meeting Minutes October 13, 2014 Kevin Kerrigan, Industrial Pretreatment Technician, Public Util Dept 08/11/2014 Sharon McAtee-Knight, Accounting Clerk, Finance Department 08/18/2014 Tina Burdo, Customer Service Representative, Customer Service Dept 08/25/2014 Paul Chouinard, Construction Inspector 2, Engineering Department 08/25/2014 Leigh Anne McLain, Service Dispatcher, Gas Department 08/25/2014 Christopher Brown, Gas Technician I, Gas Department 08/25/2014 Jhimmy Vargas-Salinas, Public Utilities Technician I, Public Util Dept 08/25/2014 Seth Eigenmann, Parks Service Technician I, Parks and Rec Dept 08/25/2014 Cedric Foster, Parks Service Technician I, Parks and Recreation Dept 08/25/2014 Trustee Hamilton moved to approve that the new hires be accepted into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 4.2 Approve the following request of employees Patricia Cooke, Police Department, Allen Del Prete, Human Resources Department, Charles Kindred, Solid Waste General Services Department, Karen Miles, Finance Department, and Tina Wilson, Office of Management and Budget, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Patricia Cooke, Police Office Specialist, Police Department, was employed by the City on July 24, 1995 and her pension service credit is effective on that date. Her pension will be effective October 1, 2014. Based on an average salary of approximately $34,929.43 over the past five years, the formula for computing regular pensions and Ms. Cooke's selection of the Single Life Annuity, this pension benefit will be approximately $18,418.68 annually. Allen Del Prete, Human Resources Manager, Human Resources Department, was employed by the City on February 11, 1991 and his pension service credit is effective on that date. His pension will be effective October 1, 2014. Based on an average salary of approximately $74,987.60 over the past five years, the formula for computing regular pensions and Mr. Del Prete's selection of the 10-Year Certain and Life Annuity, this pension benefit will be approximately $48,160.92 annually. Charles Kindred, Fleet Mechanic, Solid Waste General Services Department, was employed by the City on April 28, 1986 and his pension service credit is effective on that date. His pension will be effective February 1, 2015. Based on an average salary of approximately $61,922.36 over the past five years, the formula for computing regular pensions and Mr. Kindred's selection of the Single Life Annuity with a 10% Partial Lump Sum Distribution, this pension benefit will be approximately $44,044.68 annually. Karen Miles, Accounting Manager, Finance Department, was employed by the City on September 22, 1986 and her pension service credit is effective on that date. Her pension will be effective October 1, 2014. Based on an average Page 3 City of Clearwater Pension Trustees Meeting Minutes October 13, 2014 salary of approximately $81,443.29 over the past five years, the formula for computing regular pensions and Ms. Miles' selection of the Single Life Annuity, this pension benefit will be approximately $63,540.60 annually. Tina Wilson, Budget Director, Office of Management and Budget, was employed by the City on September 10, 1984 and her pension service credit is effective on that date. Her pension will be effective October 1, 2014. Based on an average salary of approximately $108,851.94 over the past five years, the formula for computing regular pensions and Ms. Wilson's selection of the Single Life Annuity, this pension benefit will be approximately $89,886 annually. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty 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 years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Cooke, Mr. Del Prete, Mr. Kindred, Ms. Miles and Ms. Wilson have met the non-hazardous duty criteria. 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 years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Trustee Jonson moved to approve the following request of employees Patricia Cooke, Police Department, Allen Del Prete, Human Resources Department, Charles Kindred, Solid Waste General Services Department, Karen Miles, Finance Department, and Tina Wilson, Office of Management and Budget, 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 Recommend approval of the following request of employees Nancy Oakley, Parks and Recreation Department, Samuel Taylor, Police Department and David Weitzel, Parks and Recreation Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. Page 4 City of Clearwater Pension Trustees Meeting Minutes October 13, 2014 Nancy Oakley, Accountant, Parks and Recreation Department, was employed by the City on May 3, 2004, and began participating in the Pension Plan on that date. Ms. Oakley terminated from City employment on August 9, 2014. Samuel Taylor, Senior Communications Operator, Police Department, was employed by the City on January 12, 2004 and began participating in the Pension Plan on that date. Mr. Taylor terminated from City employment on August 23, 2014. David Weitzel, Recreation Program Support Technician, Parks and Recreation Department, was employed by the City on January 3, 2000 and began participating in the Pension Plan on that date. Mr. Weitzel will terminate from City employment on October 25, 2014. 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 normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty 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 years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Oakley, Mr. Taylor and Mr. Weitzel will meet the non-hazardous duty criteria and begin collecting pensions in December 2023, February 2034 and November 2017, respectively. 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 years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Page 5 City of Clearwater Pension Trustees Meeting Minutes October 13, 2014 Trustee Hock-DiPolito moved to approve the following request of employees Nancy Oakley, Parks and Recreation Department, Samuel Taylor, Police Department and David Weitzel, Parks and Recreation Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. The motion was duly seconded and carried unanimously. 4.4 Approve an amendment to the agreement with Gabriel Roeder Smith and Company for actuarial services for the Pension Plan, to extend the agreement for two years, to December 31, 2016, add additional services for an additional not-to-exceed amount of $71,500, and authorize the appropriate officials to execute same. In December 2009, the Trustees approved a five-year actuarial services agreement with Gabriel Roeder Smith and Company for the pension plan, expiring December 31, 2014. The agreement also included annual actuarial services for the City's Other Post Employment Benefits (OPEB) liability. Those services and costs were separately approved by the City Council in December 2009. Staff recommends extension of the agreement due to the required implementation of GASB Statements 67 and 68 effective with fiscal years 2014 and 2015. These implementations require significant assistance from the Plan's actuary and staff believes it is the Plan's best interests to continue with the existing actuary during the transition period. The total not-to-exceed amount includes the following services: $20,500 - annual actuarial valuation as of 1/01/2015 $21,000 - annual actuarial valuation as of 1/01/2016 (prior year increased by CPI not to exceed $21,000) $ 9,000 - actuarial valuation as of 9/30/2014 for implementation of GASB 67 and 68 $ 5,500 - actuarial valuation as of 9/30/2015 per GASB 68 requirement $ 5,500 - actuarial valuation as of 9/30/2016 per GASB 68 requirement $10,000 - contingency for miscellaneous consulting fees @ $5,000 per year $71,500 Requested not-to-exceed The City Council will be considering a similar amendment to the OPEB portion of the agreement on the Council agenda this week, with those costs to be paid from City funds. Page 6 City of Clearwater Pension Trustees 5. Adjourn Meeting Minutes October 13, 2014 APPROPRIATION CODE AND AMOUNT: 0646- 07410- 530100- 585 - 000 -0000 Trustee Hamilton moved to approve an amendment to the agreement with Gabriel Roeder Smith and Company for actuarial services for the Pension Plan, to extend the agreement for two years, to December 31, 2016, add additional services for an additional not -to- exceed amount of $71,500, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. The meeting adjourned at 1:08 p.m. q69(,c (\CrClC �Of Chair Attest t�P° ��l'� Employees' Pension Plan Trustees City Clerk City of Clearwater eat Page 7