02/17/2015Tuesday, February 17, 2015
9:00 AM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Pension Trustees
Meeting Agenda
February 17, 2015Pension Trustees Meeting Agenda
1. Call To Order
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.
3. Citizens to be Heard Regarding Items Not on the Agenda
4. New Business Items
4.1 Approve the new hires for acceptance into the Pension Plan as listed.
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.
4.3 Approve a one-year funding extension for Hancock Timberland XI LP through
March 31, 2016.
5. Adjourn
Page 2 City of Clearwater Printed on 2/11/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#14-974
Agenda Date: 2/17/2015 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Pension Trustees
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the minutes of the January 12, 2015 Pension Trustees meeting as submitted in
written summation by the City Clerk.
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 2/11/2015
Pension Trustees Meeting Minutes January 12, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Meeting Minutes
Monday, January 12, 2015
1:00 PM
Pension Trustees
Page 1 City of Clearwater Draft
Pension Trustees Meeting Minutes January 12, 2015
Roll Call
Present 4 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee
Bill Jonson, and Trustee Hoyt Hamilton
Absent 1 - Trustee Jay E. Polglaze Also Present: William B. Horne II- City Manager, Jill S. 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.
Unapproved 1. Call To Order – Chair Cretekos
The meeting was called to order at 1:08 p.m. at City Hall.
It was stated that Councilmember Polglaze was unable to attend due to
a family matter.
2. Approval of Minutes
2.1 Approve the minutes of the November 17, 2014 Pension Trustees meeting as
submitted in written summation by the City Clerk.
Trustee Hamilton moved to approve the minutes of the November
17, 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
Kelly Violante, Accounting Clerk, General Services Dept 11/17/2014
Page 2 City of Clearwater Draft
Pension Trustees Meeting Minutes January 12, 2015
Deanna Foster, Recreation Program Support Tech, Parks and Rec Dept 11/17/2014
Delbert Foster, Solid Waste Worker, Solid Waste Department 11/17/2014
Jeffery Long, Solid Waste Worker, Solid Waste Department 11/17/2014
Deborah Svitak, Senior Accountant, Finance Department 11/17/2014
Norman Runkles, Police Aide, Police Department 11/17/2014
William Smith, Public Utilities Technician I, Public Utilities Department 12/1/2014
Jeffrey Gow, Accounting Technician, Solid Waste Department 12/1/2014
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 Betsy Clement, Public Communications
Department; Theron Johnson, Solid Waste General Services Department; John Scott,
Customer Service Department; and Keith Shive, Fire Department, for a regular
pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan.
Betsey Clement, Public Information Specialist, Public Communications
Department, was employed by the City on August 1, 1990 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 $56,679.15 over the
past five years, the formula for computing regular pensions, and Ms. Clement’s
selection of the 66 2/3% Joint and Survivor Annuity, this pension benefit will be
approximately $38,616 annually.
Theron Johnson, Solid Waste Service Coordinator, Solid Waste General
Services Department, was employed by the City on October 15, 1984 and his
pension service credit is effective on that date. His pension will be effective
December 1, 2014. Based on an average salary of approximately $59,492.51
over the past five years, the formula for computing regular pensions and Mr.
Johnson’s selection of the Single Life Annuity, this pension benefit will be
approximately $55,468.32 annually.
John Scott, Customer Service Director, Customer Service Department, was
employed by the City on January 8, 1990 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 $92,237.68 over the past five years, the
formula for computing regular pensions, and Mr. Scott’s selection of the 100%
Joint and Survivor Annuity, this pension benefit will be approximately
$59,938.32 annually.
Keith Shive, Fire Medic, Fire Department, was employed by the City on
January 15, 1990 and his pension service credit is effective on that date. His
pension will be effective February 1, 2015. Based on an average salary of
Page 3 City of Clearwater Draft
Pension Trustees Meeting Minutes January 12, 2015
approximately $74,537.96 over the past five years, the formula for computing
regular pensions, and Mr. Shive’s selection of the Single Life Annuity with a
10% partial lump sum distribution, this pension benefit will be approximately
$46,755 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. Clement, Mr. Johnson and Mr. Scott 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. Mr. Shive has met the
hazardous duty criteria.
Trustee Hock-DiPolito moved to approve the following request of
employees Betsy Clement, Public Communications Department;
Theron Johnson, Solid Waste General Services Department; John
Scott, Customer Service Department; and Keith Shive, Fire
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 the following request of employee James Stanley, Solid Waste General
Services Department, to vest his pension as provided by Section 2.419 of the
Employees’ Pension Plan.
James Stanley, Communications Technician, Solid Waste General Services
Department, was employed by the City on November 1, 2004 and began
participating in the Pension Plan on that date. Mr. Stanley terminated from City
Page 4 City of Clearwater Draft
Pension Trustees Meeting Minutes January 12, 2015
employment on November 15, 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. Mr. Stanley will meet the non-hazardous duty criteria and
begin collecting a pension in January 2019.
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 Hamilton moved to approve the following request of
employee James Stanley, Solid Waste General Services
Department, to vest his pension as provided by Section 2.419 of the
Employees’ Pension Plan. The motion was duly seconded and
carried unanimously.
4.4 Adopt the Actuarial Funding Policy for the City of Clearwater Employees’ Pension
Plan.
The Pension Funding Task Force 2013, including GFOA, ICMA, National
League of Cities, and various other national organizations, recently
Page 5 City of Clearwater Draft
Pension Trustees Meeting Minutes January 12, 2015
recommended that all defined benefit pension plans adopt a formal funding
policy.
A formal funding policy provides a long-term road map for plan funding and is a
component of prudent financial management of the plan
The City’s actuary has developed a funding policy for the City of Clearwater
Employees’ Pension Plan.
The Trustees reviewed a draft funding policy at the November 2014 Trustees
meeting and all Trustee recommendations have been incorporated into the
policy for adoption.
Trustee Jonson moved to adopt the Actuarial Funding Policy for
the City of Clearwater Employees’ Pension Plan. The motion was
duly seconded and carried unanimously.
5. Adjourn
The meeting adjourned at 1:11 p.m.
Chair
Employees’ Pension Plan Trustees
Attest
City Clerk
Page 6 City of Clearwater Draft
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Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#14-856
Agenda Date: 2/17/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.1
SUBJECT/RECOMMENDATION:
Approve the new hires for acceptance into the Pension Plan as listed.
SUMMARY:
Pension
Name, Job. Class, & Dept./Div .Elig. Date
Benjamin Leeper, Public Utilities Specialist, Public Utilities Department 12/15/2014
Lucas Moody, Drafting and Mapping Technician, Engineering Department 12/15/2014
David Pearson, Library Assistant, Library Department 12/29/2014
Donald Robinson, AmeriCorps Clearwater Coordinator, Police Department 12/29/2014
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 1 City of Clearwater Printed on 2/11/2015
BLANK INTENTIONALLY
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#14-851
Agenda Date: 2/17/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.2
SUBJECT/RECOMMENDATION:
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.
SUMMARY:
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 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
Page 1 City of Clearwater Printed on 2/11/2015
File Number: ID#14-851
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.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 2 City of Clearwater Printed on 2/11/2015
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Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#14-975
Agenda Date: 2/17/2015 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.3
SUBJECT/RECOMMENDATION:
Approve a one-year funding extension for Hancock Timberland XI LP through March 31, 2016.
SUMMARY:
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 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.
APPROPRIATION CODE AND AMOUNT:
N/A
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