07/13/2015Monday, July 13, 2015
1:00 PM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Pension Trustees
Meeting Agenda
July 13, 2015Pension Trustees Meeting Agenda
1. Call To Order
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.
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 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.
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.
5. Adjourn
Page 2 City of Clearwater Printed on 7/8/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1423
Agenda Date: 7/13/2015 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Pension Trustees
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the minutes of the June 15, 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 7/8/2015
Pension Trustees Meeting Minutes June 15, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Meeting Minutes
Monday, June 15, 2015
1:00 PM
Council Chambers
Pension Trustees
Page 1 City of Clearwater Draft
Pension Trustees Meeting Minutes June 15, 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 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 1:09 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the May 18, 2015 Pension Trustees meeting as submitted in
written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the May 18, 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
Tomislav Marjanovic, Police Officer, Police Department 3/21/2015*
Gary Brokaw, Recreation Programmer, Parks and Rec. Dept 4/4/2015
Richard Moore, Library Assistant, Library Dept 4/4/2015**
Lucas Hutchins, Fleet Mechanic, General Services Dept 4/6/2015
Dwayne Nash, Custodial Worker, Library Dept 4/6/2015
Heather Pearson, Accounting Clerk, Finance Dept 4/6/2015
Page 2 City of Clearwater Draft
Pension Trustees Meeting Minutes June 15, 2015
Andrew Ross, Water Distribution Oper. Trainee, Public Utilities Dept 4/6/2015
Joshua Bender, Fire Medic, Fire Dept 4/6/2015
Kyle Brynjulson, Fire Medic, Fire Dept 4/6/2015
Austin Dente, Fire Medic, Fire Dept 4/6/2015
Jackelyn Koffler, Fire Medic, Fire Dept 4/6/2015
Matthew Mauger, Fire Medic, Fire Dept 4/6/2015
Fredy Ortiz, Fire Medic, Fire Dept 4/6/2015
David Stark, Fire Medic, Fire Dept 4/6/2015
Andrew Sullivan, Fire Medic, Fire Dept 4/6/2015
Autumn Yanchunis, Fire Medic, Fire Dept 4/6/2015
Warren Chriss, Police Officer, Police Dept 4/20/2015
Brooke Cunningham, Marine Facility Oper., Marine and Aviation Dept 4/20/2015***
Morgan Douglass, Human Res. Analyst, Human Resources Dept 4/20/2015****
Robert Fahey (Jr.), Traffic Signs and Markings Tech, Engineering Dept 4/20/2015
John Guzzi, Custodial Worker, Marine and Aviation Dept 4/20/2015*****
Michael Jenson, Police Officer, Police Dept 4/20/2015
Jesse Johnson, Public Utilities Technician I, Public Utilities Dept 4/20/2015
Stephanie Millman, Licensed Electrician, Public Utilities Dept 4/20/2015
Daniel Negersmith, Police Officer, Police Dept 4/20/2015
Austin Sheldon, Marine Facility Operator, Marine and Aviation Dept 4/20/2015******
Cara Zeph, Police Officer, Police Dept 4/20/2015
* Tomislav Marjanovic was previously employed with the City of Clearwater,
resigned effective 10/25/2014, rescinded resignation and was rehired
3/21/2015; he will be eligible for pension as of 3/21/2015.
** Richard Moore was hired into a part time position on 10/21/2013, and
transferred to a full time position effective 4/4/2015; he will be eligible for
pension as of 4/4/2015
*** Brooke Cunniingham was employed in a part time position from 5/30/2014
to 4/20/2015, and transferred to a full time position effective 4/20/2015; she will
be eligible for pension as of 4/20/2015.
**** Morgan Douglass was hired as a Human Resources Intern on 10/6/2014,
and transferred to a full time position effective 4/20/2015; she will be eligible for
pension as of 4/20/2015.
***** John Guzzi was employed in a part time position from 3/27/1999 to
8/30/1999, a full time position from 10/23/2000 to 3/27/2006, and then part
time again from 10/15/2014 to 11/1/2014, and 11/18/2014 to 4/20/2015. He
transferred to a full time position effective 4/20/2015, and will be eligible for
pension as of 4/20/2015.
****** Austin Sheldon was employed in a part time position from 3/17/2013 to
4/20/2015, and transferred to a full time position effective 4/20/2015; he will be
eligible for pension as of 4/20/2015.
Trustee Hock-DiPolito moved to approve the new hires for
Page 3 City of Clearwater Draft
Pension Trustees Meeting Minutes June 15, 2015
acceptance into the Pension Plan as listed. The motion was duly
seconded and carried unanimously.
4.2 Approve the following request of employees Timothy Bartlett, Public Utilities
Department; James Kleinsorge, Police Department; and David Pettay, Customer
Service Department, for a regular pension as provided by Sections 2.416 and 2.424 of
the Employees’ Pension Plan.
Timothy Bartlett, Utilities Mechanic Supervisor II, Public Utilities Department,
was employed by the City on May 29, 1985, and his pension service credit is
effective on that date. His pension will be effective June 1, 2015. Based on an
average salary of approximately $63,742.75 over the past five years, the
formula for computing regular pensions and Mr. Bartlett’s selection of the
100% Joint and Survivor Annuity, this pension benefit will be approximately
$51,543 annually.
James Kleinsorge, Police Major, Police Department, was employed by the City
on August 6, 1994, and his pension service credit is effective on that date. His
pension will be effective June 1, 2015. Based on an average salary of
approximately $109,066.69 over the past five years, the formula for computing
regular pensions and Mr. Kleinsorge’s selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $61,313.40 annually.
David Pettay, Customer Service Representative, Customer Service
Department, was employed by the City on July 11, 2005, and his pension
service credit is effective on that date. His pension will be effective August 1,
2015. Based on an average salary of approximately $26,755.44 over the past
five years, the formula for computing regular pensions and Mr. Pettay’s
selection of the Single Life Annuity, this pension benefit will be approximately
$7,398.72 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. Bartlett and Mr. Pettay have met the non-hazardous duty
criteria.
Page 4 City of Clearwater Draft
Pension Trustees Meeting Minutes June 15, 2015
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. Kleinsorge has met the
hazardous duty criteria.
Trustee Polglaze moved to approve the following request of
employees Timothy Bartlett, Public Utilities Department; James
Kleinsorge, Police Department; and David Pettay, Customer
Service 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 Amend the Employee Pension Plan to correct Section 2.412, Definitions, of the
Clearwater Code of Ordinances.
The recent adoption of Ordinance 8607-14 amended the Employee Pension
Plan, Chapter 2, Article V, Division 3, Section 2.412 of the Code of Ordinances
to comply with changes to IRS Regulations. Section 2.412 was part of the
amended language that was included in the Plan changes approved at
referendum and made effective January 1, 2013.
When the change required by Ordinance 8607-14 was entered into Muni-Code,
it replaced Section 2.412 with the former language in effect prior to the
referendum (Section 2.393).
This ordinance will correct that error by entering the correct language
contained in the current Pension Ordinance and will include an additional
subsection, restated from Section 2.392, 2a-d, for the definition of
compensation as required by IRS regulations.
Trustee Hamilton moved to amend the Employee Pension Plan to
correct Section 2.412, Definitions, of the Clearwater Code of
Ordinances. The motion was duly seconded and carried unanimously.
Page 5 City of Clearwater Draft
Pension Trustees Meeting Minutes June 15, 2015 5. Adjourn
The meeting adjourned at 1:11 p.m.
Chair
Employees’ Pension Plan Trustees
Attest
City Clerk
Page 6 City of Clearwater Draft
BLANK INTENTIONALLY
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1388
Agenda Date: 7/13/2015 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:
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*
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.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 1 City of Clearwater Printed on 7/8/2015
BLANK INTENTIONALLY
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1389
Agenda Date: 7/13/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.2
SUBJECT/RECOMMENDATION:
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.
SUMMARY:
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 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.
Page 1 City of Clearwater Printed on 7/8/2015
File Number: ID#15-1389
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 2 City of Clearwater Printed on 7/8/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1457
Agenda Date: 7/13/2015 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.3
SUBJECT/RECOMMENDATION:
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.
SUMMARY:
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 Ranking 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%
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
Page 1 City of Clearwater Printed on 7/8/2015
File Number: ID#15-1457
Page 2 City of Clearwater Printed on 7/8/2015