07/13/2015 Pension Trustees Meeting Minutes July 13, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
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Meeting Minutes
Monday, July 13, 2015
1 :00 PM
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes July 13, 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 11 - 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— Chair Cretekos
The meeting was called to order at 2:17 p.m.
2. Approval of Minutes
2.1 Approve the minutes of the June 15, 2015 Pension Trustees meeting as submitted in
written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the June 15, 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.
Body: SUMMARY:
Name, Job. Class, & Dept./Div. Pension Elig. Date
Joshua Morales, Field Service Representative I, Customer Service Dept 05/04/2015
Todd Norrie, Field Service Representative I, Customer Service Dept 05/04/2015
Justina Vasquez, Recreation Leader I, Parks and Recreation Department 05/16/2015*
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City of Clearwater
Pension Trustees Meeting Minutes July 13, 2015
Joseph Bujan, Utilities Mechanic, Public Utilities Department 05/18/2015
Jared Walker, Parks Service Technician I, Parks and Recreation Dept 05/18/2015
Alexander Wiser, Parks Service Technician I, Parks and Recreation Dept 05/18/2015
* Justina Vazquez was employed in a temporary position from 5/18/2013 to
11/01/2013, and then a part time position from 11/02/2013 to 5/15/2015. She
transferred to a full time position effective 5/16/2015, and will be eligible for
pension as of 5/16/2015.
Trustee Hock-DiPolito 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 Karen Sowada, Parks and Recreation
Department and Shawn Taber, Fire Department, to vest their pensions as provided by
Section 2.419 of the Employees' Pension Plan.
Karen Sowada, Recreation Supervisor II, Parks and Recreation Department,
was employed by the City on July 1, 2002, and began participating in the
Pension Plan on that date. Ms. Sowada terminated from City employment on
April 9, 2015.
Shawn Taber, Fire Medic, Fire Department, was employed by the City on
October 4, 1999 and began participating in the Pension Plan on that date. Mr.
Taber terminated from City employment on May 16, 2015.
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 (60) years and
completed twenty-five years of credited service; or the date on which a
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City of Clearwater
Pension Trustees Meeting Minutes July 13, 2015
participant has reached the age of sixty-five years and completed ten years of
credited service. Ms. Sowada will meet the non-hazardous duty criteria and
begin collecting a pension in July 2022.
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. Taber will meet the
hazardous duty criteria and begin collecting pension in November 2019.
Trustee Polglaze moved to approve the following request of
employees Karen Sowada, Parks and Recreation Department and
Shawn Taber, Fire Department, to vest their pensions as provided
by Section 2.419 of the Employees' Pension Plan. The motion was
duly seconded and carried unanimously.
4.3 Approve the termination of international equity money manager Wentworth, Hauser
and Violich (WHV); approve the hiring of Thompson, Siegel and Walmsley LLC
(TS&W) and WCM Investment Management (WCM) as active international equity
money managers; and authorize the appropriate officials to execute same.
Wentworth, Hauser, and Violich (WHV) was hired as an international equity
manager for the plan in April 2008. Initial performance was good (55.98%
return and 15th percentile ranking in 2009), but performance has steadily
declined over recent years, as detailed below. The Pension Investment
Committee recommends termination at this time.
Percentile
WHV Rankinq Benchmark
Last 3 years 3.66% 84th 9.52%
Last 5 years 4.05% 86th 6.64%
The Pension Investment Committee recommends the hiring of two international
equity managers: to replace WHV and to potentially move additional monies
from the other current international equity manager as necessary due to
underperformance.
Per the results of a manager search conducted by the plan's performance
measurement consultant, CapTrust, the Investment Committee chose
Thompson, Siegel &Walmsley LLC (TS&W) and WCM Investment
Management (WCM) for recommendation to the Trustees.
Recent performance for the two managers is as follows:
Percentile Percentile
TS&W Ranking WCM Ranking Benchmark
Last 3 years 11.94% 12th 9.92% 32nd 9.52%
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City of Clearwater
Pension Trustees
5. Adjourn
Attest
..k1-401(1-a4
City Clerk
City of Clearwater
Meeting Minutes July 13, 2015
Last 5 years 10.19% 9th 10.31% 9th 6.64%
Fees for TS &W are 0.75% on the first $25 million and 0.65% on the next $75
million. Fees for WCM are 0.80% for all.
Funding for the two managers will be determined by a rebalancing of the
portfolio but is estimated at $15 million each.
APPROPRIATION CODE AND AMOUNT:
0646- 07410- 530100- 585 - 000 -0000
In response to questions, Finance Director Jay Ravins said there is
approximately $75 million in International Equity. The manager being
terminated will have $30 million remaining; further allocations to the new
managers will occur over time as performance is monitored. The manager
underperformed over the past five years.
Trustee Jonson moved to approve the termination of international
equity money manager Wentworth, Hauser and Violich (WHV);
approve the hiring of Thompson, Siegel and Walmsley LLC (TS &W)
and WCM Investment Management (WCM) as active international
equity money managers; and authorize the appropriate officials to
execute same. The motion was duly seconded and carried
unanimously.
The meeting adjourned at 2:22 p.m.
Clea%ei\c'ekko
Chair
Employees' Pension Plan Trustees
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