11/16/2015 Pension Trustees Meeting Minutes November 16, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
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Meeting Minutes
Monday, November 16, 2015
1 :00 PM
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes November 16, 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, Rosemarie Call — City Clerk, and 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 1:06 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the October 12, 2015 Pension Trustee Meeting as submitted
in written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the October 12,
2015 Pension Trustee 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
Kevin Poole, Solid Waste Equipment Oper, Solid Waste Dept 7/27/2015*
Renardo Lowe, Parks Service Technician I, Parks and Rec. Dept 9/08/2015
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City of Clearwater
Pension Trustees Meeting Minutes November 16, 2015
Mario Zaccaria, Building Construct Insp, Planning and Dev. Dept 9/08/2015
Torey Castleberry, Solid Waste Worker, Solid Waste Department 9/08/2015
Terry Clemons, Solid Waste Worker, Solid Waste Department 9/08/2015
Walter Ramos Mendez, Fire Inspector II, Fire Department 9/08/2015
Wilton Hill, Senior Systems Programmer, Information Technology Dept 9/08/2015
*Kevin Poole was previously employed with the City of Clearwater from
8/18/2008 through 4/7/2015. He was rehired effective 7/27/2015 and will be
eligible for pension as of 7/27/2015.
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 Recommend approval of the following request of employees Douglas Munson, Police
Department and James Pyatt, Police Department, to vest their pensions as provided
by Section 2.419 of the Employees' Pension Plan.
Douglas Munson, Police Officer, Police Department, was employed by the City
on April 28, 1997, and began participating in the Pension Plan on that date.
Mr. Munson terminated from City employment on September 23, 2015.
James Pyatt, Police Communications Operator, Police Department, was
employed by the City on August 6, 1990 and began participating in the Pension
Plan on that date. Mr. Pyatt terminated from City employment on September
26, 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
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City of Clearwater
Pension Trustees Meeting Minutes November 16, 2015
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. Pyatt will meet the non-hazardous duty criteria and begin
collecting a pension in September 2020.
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. Munson will meet the
hazardous duty criteria and begin collecting pension in May 2017.
Trustee Polglaze moved to approve the following request of
employees Douglas Munson, Police Department and James Pyatt,
Police 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 following request of employees Nicholas Brems, Police Department;
Donald Davis, Information Technology; Carolynn Duncan, Library Department;
Michael Holmes, Housing and Economic Development Department; Brenda
McLaughlin, Police Department; Victor Myerscough, Solid Waste General Services
Department; for a regular pension as provided by Sections 2.416 and 2.424 of the
Employees' Pension Plan.
Nicholas Brems, Police Officer, Police Department, was employed by the City
on March 25, 1991, and his pension service credit is effective on that date. His
pension will be effective October 1, 2015. Based on an average salary of
approximately $76,403.52 over the past five years, the formula for computing
regular pensions and Mr. Brems' selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $50,182.80 annually.
Donald Davis, Senior Network Analyst, Information Technology Department,
was employed by the City on September 16, 1985, and his pension service
credit is effective on that date. His pension will be effective October 1, 2015.
Based on an average salary of approximately $60,391.44 over the past five
years, the formula for computing regular pensions and Mr. Davis' selection of
the Joint and Survivor Annuity, this pension benefit will be approximately
$49,892.16 annually.
Carolynn Duncan, Library Assistant, Library Department, was employed by the
City on December 6, 1989, and her pension service credit is effective on that
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City of Clearwater
Pension Trustees Meeting Minutes November 16, 2015
date. Her pension will be effective October 1, 2015. Based on an average
salary of approximately $35,369.21 over the past five years, the formula for
computing regular pensions and Ms. Duncan's selection of the 66 2/3% Joint
and Survivor Annuity, this pension benefit will be approximately $23,644.56
annually.
Michael Holmes, Housing Manager, Housing and Economic Development
Department, was employed by the City on January 7, 1985, and his pension
service credit is effective on that date. His pension will be effective October 1,
2015. Based on an average salary of approximately $72,117.01 over the past
five years, the formula for computing regular pensions and Mr. Holmes'
selection of the 100% Joint and Survivor Annuity, this pension benefit will be
approximately $53,868.60 annually.
Brenda McLaughlin, Police Communications Operator, Police Department, was
employed by the City on December 25, 1995, and her pension service credit is
effective on that date. Her pension will be effective January 1, 2016. Based on
an average salary of approximately $50.808.67 over the past five years, the
formula for computing regular pensions and Ms. McLaughlin's selection of the
100% Joint and Survivor Annuity, this pension benefit will be approximately
$26,727.72 annually.
Victor Myerscough, Fleet Mechanic Supervisor, Solid Waste General Services
De Department, was employed by the City on July 23, 1990, and his pension
service credit is effective on that date. His pension will be effective October 1,
2015. Based on an average salary of approximately $59,626.34 over the past
five years, the formula for computing regular pensions and Mr. Myerscough's
selection of the 50% Joint and Survivor Annuity, this pension benefit will be
approximately $38,993.88 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. Davis, Ms. Duncan, Mr. Holmes, Ms. McLaughlin, and Mr.
Myerscough have met the non-hazardous duty criteria.
Section 2.416 provides for normal retirement eligibility for hazardous duty
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City of Clearwater
Pension Trustees Meeting Minutes November 16, 2015
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. Brems has met the
hazardous duty criteria.
Trustee Hamilton moved to approve the following request of
employees Nicholas Brems, Police Department; Donald Davis,
Information Technology; Carolynn Duncan, Library Department;
Michael Holmes, Housing and Economic Development Department;
Brenda McLaughlin, Police Department; Victor Myerscough, 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.
4.4 Approve the City of Clearwater Employees' Pension Plan as lead plaintiff in litigation
against Marvell Technology Group, LTD regarding investment losses to the Plan;
retain Saxena White, P.A. as legal counsel in this regard and authorize staff to
negotiate a retainer agreement with Saxena White, P.A.
In December 2011, the Pension Trustees approved a contract retaining
Saxena White, P.A. to provide monitoring of securities in the Plan's investment
portfolio in connection with potential claims for damages suffered by the
Pension Plan. There is no cost to the plan for the ongoing monitoring services.
Saxena White has recommended that the Pension Plan apply for lead plaintiff
status in a litigation action against Marvell Technology Group, incorporated in
Bermuda with U.S. headquarters in Santa Clara, California. Marvell designs,
develops and markets integrated circuits for communications-related markets
that provide an interface between analog signals and digital information used in
computing and communications systems.
Marvell has disclosed an internal investigation into its accounting practices
related to revenue recognition timing that could involve possible fraudulent
misconduct. Additionally, Marvell disclosed a nearly $400 million increase to its
litigation reserve while simultaneously disclosing a review of its controls
surrounding the establishment of litigation reserves. In reaction to these
disclosures and related analyst downgrades and negative comments, Marvell's
stock price dropped by over 16% from $10.55 on September 10, 2015 to $8.84
per share on September 11, 2015. The City of Clearwater Employees' Pension
Plan sustained estimated losses of$515,000.
Pursuing lead plaintiff status will serve to ensure the Trustees and Plan
administrators are fulfilling their fiduciary responsibilities while conveying a
clear message to the public and corporate world that the City is doing its due
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City of Clearwater
Pension Trustees
5. Adjourn
Attest
Meeting Minutes November 16, 2015
diligence in protecting Plan assets.
The retained agreement will stipulate that the cost of litigation will result in no
out -of- pocket costs to the Plan, with legal fees paid on a contingency basis.
The pension plan's attorneys, Klausner, Kaufman, Jensen, and Levinson, as
well as the plan's investment consultants, CapTrust, concur with pursuing lead
plaintiff status.
Finance Director Jay Ravins said staff was informed this morning that
other entities with greater losses have filed for lead plaintiff status; it is
unlikely that the City will be appointed lead plaintiff but the City will be
cued up if someone backs out.
In response to a question, Mr. Ravins said not being designated lead
plaintiff will not impact the City's pro rata allocation of settlement.
Lead plaintiffs are reimbursed for administrative costs.
Trustee Jonson moved to approve the City of Clearwater
Employees' Pension Plan as lead plaintiff in litigation against
Marvell Technology Group, LTD regarding investment losses to the
Plan; retain Saxena White, P.A. as legal counsel in this regard and
authorize staff to negotiate a retainer agreement with Saxena
White, P.A. The motion was duly seconded and carried
unanimously.
The meeting adjourned at 1:11 p.m.
Ad-OIL/A_ a_
City Clerk
City of Clearwater
Cl e.OrtR t\ cr c k.IWS
Chair
Employees' Pension Plan Trustees
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