05/18/2015 Pension Trustees Meeting Minutes May 18, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
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Meeting Minutes
Monday, May 18, 2015
1 :00 PM
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes May 18, 2015
Roll Call
Present 4 - Chair George N. Cretekos, Trustee Jay E. Polglaze, Trustee Bill
Jonson, and Trustee Hoyt Hamilton
Absent 1 - Trustee Doreen Hock-DiPolito
Also Present - William B. Horne II - City Manager, Jill S. Silverboard -Assistant City
Manager, Rod Irwin -Assistant City Manager, Pamela K. Akin - City
Attorney, 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
The meeting was called to order at 1:33 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the April 13, 2015 Pension Trustees meeting as submitted in
written summation by the City Clerk.
Trustee Hamilton moved to approve the minutes of the April 13,
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.
Pension
Name, Job. Class, & Dept./Div. Elig. Date
Jessica Turner, Accounting Tech., Parks and Recreation Dept 3/07/2015
Wayne Johnson, Utilities Mechanic, Public Utilities Dept 3/09/2015
Joshua Jones, Recreation Leader, Parks and Recreation Dept 3/09/2015 **
William Baratta, Solid Waste Equip. Operator, Solid Waste Dept 3/23/2015
Matthew Hess, Beach Lifeguard, Parks and Recreation Dept 3/23/2015 ***
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City of Clearwater
Pension Trustees Meeting Minutes May 18, 2015
Kathleen Holden, Crime Analyst, Police Dept 3/23/2015
Jose Patino, Public Information Spec., Public Communications Dept 3/23/2015
Susan Pryor, Customer Serv. Rep, Planning and Development Dept 3/23/2015 ****
Eric Rau, Parks Service Tech. I, Parks and Recreation Dept 3/23/2015
* Jessica Turner was employed in a temporary/ Event Support Staff
assignment from 06/24/2006 to 11/02/2013, and another temporary
assignment from 01/06/2015 to 03/07/2015. She was hired into a full time
position as of 03/07/2015 and will be eligible for pension as of 03/07/2015.
** Joshua Jones was employed in a temporary assignment from 8/11/2014 to
03/09/2015, and then hired into a full time position as of 03/09/2015. He will be
eligible for pension as of 03/09/2015.
*** Matthew Hess was hired as a seasonal employee from 04/08/1995 to
6/16/2001, from 6/16/2001 to10/6/2001, and from 06/02/2014 to 1/13/2015.
He was hired into a full time position as of 03/23/2015 and will be eligible for
pension as of 03/23/2015.
**** Susan Pryor was hired into a part time position on 02/23/2015, and
transferred to a full-time permanent position as of 3/23/2015; she will be
eligible for pension as of 3/23//2015.
Trustee Polglaze 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 Christopher Cruickshank, Marine and
Aviation Department; Dorothee Morrow, Engineering Department; Suzanne
Sobkowiak, Police Department; Deborah Storey, Police Department; and Rex
Whittenberger, Solid Waste General Services Department for a regular pension as
provided by Sections 2.416 and 2.424 of the Employees' Pension Plan.
Christopher Cruickshank, Marine Supervisor, Marine and Aviation Department,
was employed by the City on January 11, 1988, and his pension service credit
is effective on that date. His pension will be effective May 1, 2015. Based on
an average salary of approximately $54,943.16 over the past five years, the
formula for computing regular pensions and Mr. Cruickshank's selection of the
75% Joint and Survivor Annuity, this pension benefit will be approximately
$41,240.88annually.
Dorothee Morrow, Traffic Engineering Assistant, Engineering Department, was
employed by the City on June 27, 1994, and her pension service credit is
effective on that date. Her pension will be effective May 1, 2015. Based on an
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City of Clearwater
Pension Trustees Meeting Minutes May 18, 2015
average salary of approximately $40,511.88 over the past five years, the
formula for computing regular pensions and Ms. Morrow's selection of the
Single Life Annuity, this pension benefit will be approximately $23,222.28
annually.
Suzanne Sobkowiak, Police Office Specialist, Police Department, was
employed by the City on January 5, 1998, and her pension service credit is
effective on that date. Her pension will be effective June 1, 2015. Based on an
average salary of approximately $33,299.75 over the past five years, the
formula for computing regular pensions and Ms. Sobkowiak's selection of the
75% Joint and Survivor Annuity, this pension benefit will be approximately
$14,328.84 annually.
Deborah Storey, Police Property Clerk, Police Department, was employed by
the City on February 1, 1988, and her pension service credit is effective on that
date. Her pension will be effective May 1, 2015. Based on an average salary
of approximately $37,219.34 over the past five years, the formula for
computing regular pensions and Ms. Storey's selection of the Single Life
Annuity, this pension benefit will be approximately $27,891.24 annually.
Rex Whittenberger, Fleet Mechanic Supervisor, Solid Waste General Services
Department, was employed by the City on March 21, 1987, and his pension
service credit is effective on that date. His pension will be effective April 1,
2015. Based on an average salary of approximately $77,464.91 over the past
five years, the formula for computing regular pensions and Mr. Whittenberger's
selection of the 50% Joint and Survivor Annuity, this pension benefit will be
approximately $62,636.76 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. Mr. Cruickshank, Ms. Morrow, Ms. Sobkowiak, Ms. Storey
and Mr. Whittenberger have all 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.
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City of Clearwater
Pension Trustees Meeting Minutes May 18, 2015
Trustee Hamilton moved to approve the following request of
employees Christopher Cruickshank, Marine and Aviation
Department; Dorothee Morrow, Engineering Department; Suzanne
Sobkowiak, Police Department; Deborah Storey, Police
Department; and Rex Whittenberger, Solid Waste General Services
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 agreements hiring Intercontinental Real Estate Corporation and USAA Real
Estate Company as core plus real estate money managers for the pension plan, and
authorize the appropriate officials to execute same.
The plan's investment committee conducted a manager search for core plus
real estate money managers to further diversify the portfolio and reduce
volatility of investment returns.
The committee chose two core plus real estate money managers, with
contrasting investment strategies, for recommendation to the Trustees:
Intercontinental Real Estate Corporation and USAA Real Estate Company.
Intercontinental Real Estate Corporation offers an investment product, U.S.
Real Estate Investment Fund, LLC (US REIF), investing in a balanced portfolio
of geographically diversified North American yield driven property assets,
including office buildings, multifamily, retail, industrial, senior living, healthcare,
and student housing. Investments targeted are those that provide stable and
predictable cash flow with an opportunity for capital appreciation.
USAA Real Estate Company offers an investment product, US Government
Building Fund, investing in a diversified portfolio of high quality core
government leased office and industrial properties located in major U.S.
markets, with an emphasis in the mid-Atlantic region including Washington,
D.C., Virginia, and Maryland. Investments targeted are those with stable and
reliable cash flows from mission critical governmental tenants that will limit
downside risk associated with real estate cycles.
Management fees for Intercontinental's US REIF fund are 1.1% on the first $25
million under management, plus a performance based fee of 20% of the total
return in excess of 8%. Fees for USAA's US Government Building Fund are
1.25% of the first$10 million under management, and 1.10% on the next$15
million.
The pension plan's investment committee is recommending an allocation of
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City of Clearwater
Pension Trustees
5. Adjourn
Meeting Minutes May 18, 2015
$10 million to each of the money managers. The monies would be transferred
from the plan's REIT's real estate manager, who currently has an allocation of
approximately $50 million.
The plan's pension attorney, Stu Kaufman with Klausner, Kaufman, Jensen
and Levinson, has reviewed the attached agreements and his recommended
changes have been incorporated.
In response to questions, the City Attorney said the documents were
reviewed by the Pension Board's counsel. Finance Director Jay Ravins
said counsel did not indicate there were any issues with the contract terms.
The Plan has REITS and another brick and mortar real estate money
manager in this category.
Trustee Jonson moved to approve agreements hiring
Intercontinental Real Estate Corporation and USAA Real Estate
Company as core plus real estate money managers for the pension
plan, and authorize the appropriate officials to execute same. The
motion was duly seconded and carried unanimously.
The meeting adjourned at 1:38 p.m.
City of Clearwater
— ge)(!gcrC f
Chair
Employees' Pension Plan Trustees
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