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08/17/2015Monday, August 17, 2015 1:00 PM City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Pension Trustees Meeting Agenda August 17, 2015Pension Trustees Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the July 13, 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 Vicki Dettenwanger, Finance Department, and Stephen Sarnoff, Solid Waste General Services Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. 4.3 Appoint Wayne R. Huneke to the Pension Investment Committee with term to expire August 31, 2017. 5. Adjourn Page 2 City of Clearwater Printed on 8/12/2015 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#15-1538 Agenda Date: 8/17/2015 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Pension Trustees Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the July 13, 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 8/12/2015 Pension Trustees Meeting Minutes July 13, 2015 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Monday, July 13, 2015 1:00 PM Pension Trustees Page 1 City of Clearwater Draft 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 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. Unapproved 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* Page 2 City of Clearwater Draft 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 Page 3 City of Clearwater Draft 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 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% Page 4 City of Clearwater Draft Pension Trustees 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. 5. Adjourn The meeting adjourned at 2:22 p.m. Chair Employees’ Pension Plan Trustees Attest City Clerk Page 5 City of Clearwater Draft Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#15-1460 Agenda Date: 8/17/2015 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: Name, Job. Class, & Dept./Div .Pension Elig. Date Lamonte Monroe, Customer Service Rep, Customer Service Dept 6/01/2015* John Linse, Police Communications Operator Trainee, Police Dept 6/01/2015 Symone Watts, Police Comm Operator Trainee, Police Dept 6/01/2015 Kelsey Paulton, Police Comm Operator Trainee, Police Dept 6/01/2015 Sarah Czekaj, Industrial Pretreatment Tech, Public Utilities Dept 6/01/2015 Cristian Rubiano, Traffic Engineering Assistant, Engineering Dept 6/15/2015 Matthew Blansit, Parks Support Specialist, Parks and Rec Dept 6/15/2015** * Lamonte Monroe was employed in a part time position from 4/20/2015 to 5/31/2015. He transferred to a full time position effective 6/01/2015, and will be eligible for pension as of 6/01/2015. ** Matthew Blansit was employed in a temporary position from 8/11/2014 to 6/13/2015. He transferred to a full time position effective 6/15/2015, and will be eligible for pension as of 6/15/2015. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 1 City of Clearwater Printed on 8/12/2015 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#15-1461 Agenda Date: 8/17/2015 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve the following request of employees Vicki Dettenwanger, Finance Department, and Stephen Sarnoff, Solid Waste General Services Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. SUMMARY: Vicki Dettenwanger, Risk Management Specialist, Finance Department, was employed by the City on July 24, 1995, and her pension service credit is effective on that date. Her pension will be effective October 1, 2015. Based on an average salary of approximately $42,027.16 over the past five years, the formula for computing regular pensions and Ms. Dettenwanger’s selection of the Single Life Annuity, this pension benefit will be approximately $23,118.12 annually. Stephen Sarnoff, Solid Waste Accounts Coordinator, Solid Waste General Services Department, was employed by the City on October 14, 1989, 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 $47,448.29 over the past five years, the formula for computing regular pensions and Mr. Sarnoff’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $32,283.36 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. Dettenwanger and Mr. Sarnoff 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. APPROPRIATION CODE AND AMOUNT: Page 1 City of Clearwater Printed on 8/12/2015 File Number: ID#15-1461 N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 8/12/2015 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#15-1547 Agenda Date: 8/17/2015 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Appoint Wayne R. Huneke to the Pension Investment Committee with term to expire August 31, 2017. SUMMARY: APPOINTMENT WORKSHEET BOARD: Pension Investment Committee TERM: 2 years APPOINTED BY: City Council (Pension Trustees) RESIDENCY REQUIREMENT: City of Clearwater CONTACT: Jay Ravins, Finance Dir. APPTS. NEEDED: 1 THE FOLLOWING PENSION INVESTMENT COMMITTEE MEMBER HAS A TERM, WHICH WILL BE EXPIRING AND NOW REQUIRES REPLACEMENT BY A NEW APPOINTEE: 1. Herbert W. McLachlan - 1180 Gulf Blvd., #102, 33767 - CPA Original Appointment: 12/6/07 Interest in reappointment: Does not wish to continue (term expires 8/31/15) THE NAME BELOW IS BEING SUBMITTED FOR CONSIDERATION TO FILL THE ABOVE VACANCY: 1. Wayne R. Huneke - 612 Snug Island, 33767 - Retired/Bachelor of Business Adm./CPA Page 1 City of Clearwater Printed on 8/12/2015 CITY OF CLEARWATER - APPLICATION FOR PENSION INVESTMENT COMMITTEE must be Clearwater resident) Name: Wayne R Huneke Home Address: Office Address: 612 Snug Island Retired Clearwater, FL Zip 33767 Zip Telephone: 727- 446 -1971 Telephone: Cell Phone: 727 - 698 -1700 E -mail Address: waynea,huneke.net How long a resident of Clearwater? Legal resident- 1 1/2 years; Lived in Clearwater- 10 years Occupation: Retired Employer: Field of Education: Other Work Experience: Bachelor of Business Administration See Resume Major in Accounting Financial background /experience /certifications: CPA If retired, former occupation: See Resume Community Activities: Trustee of Clearwater Yacht Club Finance Committee Member of Belleair Country Club Other Interests: Travel, Reading, Golf Board Service (current and past): Board Preference: Various Boards of Insurance and other Financial Services Companies Additional Comments: 1 /7y%- Date: 7, 0 Signed: 7: , Individual will be considered a fiduciary of the pension fund and will be required to attend training. Please return this application and board questionnaire to the Official Records & Legislative vt SeryHals Department, P. O. Box 4748, Clearwater, FL 33758 -4748, or drop off your app City 2nd Floor, 112 S. Osceola Avenue. JUG 07 20IS LEEG!S VE &s &CS L _:. COMMITTEE QUESTIONNAIRE 1. What is your understanding of the committee's duties and responsibilities? Oversee the Pension Investments. This includes periodically reviewing performance of the Investments Advisor and the individual asset managers. Recommend changes as appropriate. Review asset allocations to improve returns while minimizing the risks of large losses. 2. Have you ever observed a board meeting either in person or on C -View, the City's TV station? No 3. What background and /or qualifications do you have that you feel would qualify you to serve on this Committee? I have a strong background in the financial services industry. I understand the economics and accounting for a wide array of financial products. I previously served on the Investment Committee for several large insurance companies where we dealt with asset allocation issues and approved individual investments. 4. Why do you want to serve on this Committee? I am interested in opportunities where I can apply my skills and experience to help our local community. I believe I can add value to the Committee process. Name:_Wayne R Huneke Committee Name: Pension Investment Committee Wayne R Huneke, CPA 612 Snug Island Clearwater, FL 33767 -1827 727 - 446 -1971 (Home) 727 - 489 -1002 (Home Fax) wayne @huneke.net ING Americas Insurance Holdings. (subsidiary of ING Groep NV, one of the world's largest financial services firms headquartered in the Netherlands. Acquired ReliaStar Financial in September 2000). o Chief Financial Officer for the America's region. October 2000 to November 2001 o Chief Financial Officer United States Financial Services. November 2001 to June 2002 o Member of the Board of Directors of North American and Canadian subsidiary insurance companies. ReliaStar Financial Corp. (Publicly traded stock life insurance and financial services company) o Senior Executive Vice President. May 1999 to October 2000. Responsible for Finance and Accounting, IT and Financial Markets business unit ReliaStar Bank and securities broker /dealers). o Senior Vice President, Financial Markets business unit. November 1997 to May 1999. o Senior Vice President, Chief Financial Officer and Treasurer. August 1994 to November 1997. o Vice President, Treasurer and Chief Accounting Officer. October 1989 to August 1994. o Assistant Vice President, Assistant Controller and Assistant Treasurer. June 1986 to October 1989. Coopers and Lybrand. o Various audit staff positions. July 1973 to June 1986 Education and other. o University of Iowa, Bachelor of Business Administration, major in accounting. Graduated with distinction, May 1973. o Certified Public Accountant o Fellow, Life Management Institute o Member, AICPA Insurance Companies Committee, October 1991 to September 1994. o Served on numerous American Council of Life Insurance (ACLI) committees on GAAP and statutory reporting and other accounting topics.