02/17/2015 Pension Trustees Meeting Minutes February 17, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
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Meeting Minutes
Tuesday, February 17, 2015
9:00 AM
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes February 17, 2015
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 — City Manager, Jill Silverboard —Assistant City
Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City
Attorney, Rosemarie Call - City Clerk, 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 Cretekos
The meeting was called to order at 9:04 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the January 12, 2015 Pension Trustees meeting as submitted
in written summation by the City Clerk.
Trustee Hamilton moved to approve the minutes of the January 12,
2015 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
Benjamin Leeper, Public Utilities Specialist, Public Utilities Department 12/15/2014
Lucas Moody, Drafting and Mapping Technician, Engineering 12/15/2014
Department
David Pearson, Library Assistant, Library Department 12/29/2014
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City of Clearwater
Pension Trustees Meeting Minutes February 17, 2015
Donald Robinson, AmeriCorps Clearwater Coordinator, Police 12/29/2014
Department
Trustee Jonson moved to approve the new hires for acceptance
into the Pension Plan as listed. The motion was duly seconded and
carried unanimously.
4.2 Approve the following request of employees Stephen Langevin, Fire Department;
Barbara Moon, Parks and Recreation Department; and Mark Teunis, Police
Department, for a regular pension as provided by Sections 2.416 and 2.424 of the
Employees' Pension Plan.
Stephen Langevin, Firefighter - Driver/Operator, Fire Department, was
employed by the City on March 9, 1981, 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 $75,857.54 over the past five years, the
formula for computing regular pensions and Mr. Langevin's selection of the
100% Joint and Survivor Annuity, this pension benefit will be approximately
$68,665.44 annually.
Barbara Moon, Aquatic Programmer, Parks and Recreation Department, was
employed by the City on January 10, 1994, and her pension service credit is
effective on that date. Her pension will be effective February 1, 2015.Based on
an average salary of approximately $45,601.84 over the past five years, the
formula for computing regular pensions and Ms. Moon's selection of the Single
Life Annuity, this pension benefit will be approximately $26,408.28 annually.
Mark Teunis, Police Major, Police Department, was employed by the City on
July 19, 1982, and his pension service credit is effective on that date. His
pension will be effective January 1, 2015.Based on an average salary of
approximately $97,598.03 over the past five years, the formula for computing
regular pensions and Mr. Teunis' selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $85,050.84 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
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City of Clearwater
Pension Trustees Meeting Minutes February 17, 2015
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. Moon has 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. Mr. Langevin and Mr.
Teunis have met the hazardous duty criteria.
Trustee Hock-DiPolito moved to approve the following request of
employees Stephen Langevin, Fire Department; Barbara Moon,
Parks and Recreation Department; and Mark Teunis, Police
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 Approve a one-year funding extension for Hancock Timberland XI LP through March
31, 2016.
In the first quarter of 2012 the Employees' Pension Plan made a funding
commitment of$8 million to Hancock Timberland XI LP. There was an initial
funding period of two years with a one-year extension exercisable at Hancock's
option, which Hancock did exercise. The extended three-year funding period
expires March 31, 2015. To date the plan has funded $4.1 million of the $8
million commitment.
Hancock has requested an additional one-year extension of the funding period
from the participants in the venture. For the funding period to be extended,
two-thirds of the participants have to approve the extension by February 28,
2015.
When the pension plan added timber to the portfolio the demand for timberland
was not as great as it is now. Recently a significant number of pension plans
have added timber investments, causing an increasingly competitive
timberland market. Both Hancock and Molpus (the Plan's other timber
manager) are very concerned about the price they pay for timberland. Both
timber managers have indicated they will not overpay for timberland.
Consequently during the past year or so they have been slow to acquire
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City of Clearwater
Pension Trustees
5. Adjourn
Meeting Minutes February 17, 2015
additional timberlands.
Since inception, Hancock Timberland XI LP has produced at return of 7.26%
versus a benchmark of 9.18 %. Given the "J" curve with this type of investment
(lower return during early years), the 7.26% is very acceptable.
The funds that were carved out for Hancock currently reside with Security
Capital, the plan's real estate investment trust (REIT) money manager.
Cap Trust, the plan's investment advisor, recommends approval of the one
year extension. Stu Kaufman, the plan's attorney, has no legal objections to
the extension.
Trustee Polglaze moved to approve a one -year funding extension
for Hancock Timberland XI LP through March 31, 2016. The motion
was duly seconded and carried unanimously.
The meeting adjourned at 9:06 a.m.
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City of Clearwater
Chair
Employees' Pension Plan Trustees
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