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01/13/2005 . . . PENSION ADVISORY COMMITTEE MEETING CITY OF CLEARWATER January 13, 2005 Present: John Lee Nathan Hightower Tom Jensen John Schmalzbauer Hoyt P. Hamilton Frank Hibbard Carlen Petersen Chair Vice-Chair Committee Member Committee Member Committee Member/Councilmember Committee Member/Councilmember Committee Member/Councilmember Also Present: Joe Roseto Brenda Moses Human Resources Director Board Reporter The Chair called the meeting to order at 9:01 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 Member Hibbard moved to approve the minutes of the regular meeting of December 9, 2004, as submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 3 - Emplovees to be Heard - None. 4 - Action Items: a. Review and Action on Employee Requests for Regular Pensions: 1. Donna Gardner, Police 2. Joyce Geisel, Customer Service 3. Charles Cronin, Police 4. Gladys Young, Customer Service Member Schmalzbauer moved to approve the requests for regular pensions for Donna Gardner, Joyce Geisel, Charles Cronin, and Gladys Young. The motion was duly seconded and carried unanimously. Pension Advisory 2005-01-13 1 . . . b. Approval of New Hires as Plan Members: As of December 23, 2004, the City had 1797.14 FTEs out of 1895.4 budgeted positions. Member Petersen moved to accept the following employees into membership in the Pension Plan: Pension Elig. Name. Job. Class. & Dept./Div. Hire Date Date 11/29/04 11/29/04 11/29/04 11/29/04 11/29/04 11/29/04 11/29/04 11/29/04 11/27/04 11/27/04 12/13/04 12/13/04 Gretchen Urquhart, Police Com. Operator Trainee/Police Kathleen Rowett, Police Com. Operator Trainee/Police Charles Scrivens, Custodial Worker/Parks & Recreation Theodore Magganas, Container Mtce Worker/Solid Waste David Wilson, Recreation Programmer/Parks & Recreation Sandra Doria, Staff Assistant/Public Services David Wilson originally was hired as part-time on 8/19/96; transferred to full-time and pension eligible. The motion was duly seconded and carried unanimously. 5 - PendinQ/New Business a. James Albright Human Resources Director Joe Roseto said Mr. Albright has requested a continuance. b. Ronnie White (continued to date unknown) Mr. Roseto said the PAC (Pension Advisory Committee) attorney was unsuccessful in contacting Mr. White's attorney, therefore the case needs to be continued to a date uncertain. In response to a question, Mr. Roseto said individual video surveillance tapes discussed at the November PAC meeting were provided to Mr. White's attorney. PAC members were provided a summary of all the tapes. No tapes have been returned. He said PAC members do not need to return their tapes to staff after review. The City has the original copies. Other Mr. Roseto requested a disability hearing be scheduled for Cherie LePrevost on February 10, 2005. She is in a no-pay status and has requested her case be heard as soon as possible. Consensus was to schedule the hearing. Pension Advisory 2005-01-13 2 . . . 6 - Director's Report Mr. Roseto requested PAC members, who will attend the free seminar hosted by Klausner & Kaufman on March 2 - 4, 2005, at the Cypress Grand Hyatt in Orlando, notify him as soon as possible. Hotel and meal expenses will be reimbursed on a per diem basis. The seminar covers pension issues. An investment manager and actuary also will be present. 7- Award contract to PriceWaterhouseCoopers LLP for actuarial services for the Employees' Pension Plan and other related services for the five-year period endinQ December 31. 2009. at a total cost not to exceed $217.500. Assistant Finance Director Jay Ravins said PriceWaterhouseCoopers LLP was chosen after evaluation of responses to RFP (Request for Proposals) 2604. The five-member evaluation committee was composed of one PAC representative, and four management representatives from Finance, Human Resources, and the City Manager's office. The City of Clearwater also will be contracting separately with PriceWaterhouseCoopers LLP, at a later date, for health and welfare actuarial services as a result of this RFP process. PriceWaterhouseCoopers has performed actuarial services for the Employees' Pension Plan for the past sixteen years. Fees included in the requested "not to exceed" amount include: fixed fees for the annual actuarial report of $21,000 annually for the five-year period; annual pension plan individual benefit statements for a fixed annual fee of $2,500; and actuarial advice to City staff over the five-year period, on an as-needed basis, in the amount of $25,000. Additional funding of $75,000 is included for cost studies, if needed, to determine the impact of any pension plan changes proposed via the collective bargaining process. It was remarked that PriceWaterhouseCoopers has experienced personnel with vast corporate knowledge. The firm previously responded to City concerns, outside the scope of the normal process, at no additional cost. Other Mr. Roseto said a Pension Workshop is scheduled at 2:00 p.m. on January 31, 2005, in Council Chambers to discuss issues and ask questions. Pension Trustees, employee groups, and unions have been invited. The PAC attorney will present an analysis of the Employees' Pension Plan. No decisions will be made nor action taken. In response to a question, Mr. Roseto said no costs would be associated with the 2000 actuary study if updates are needed. Finance Director Margie Simmons said the Trustees authorized staff to move forward with an asset allocation study. She said at the February 9, 2005, Pension Investment Committee meeting, staff will review preliminary results. Discussion with the PAC regarding the results is planned in March. Pension Advisory 2005-01-13 3 . .- . 8 - Committee Members to be Heard Member Hamilton wished all a Happy New Year. Member Hightower thanked staff for providing information in advance of Ms. LePrevost's disability hearing. 9 - Adjournment The meeting adjourned at 9:18 a.m. Pension Advisory 2005-01-13 ~~~ hair Pension Advisory Committee 4