01/19/2016 Pension Trustees Meeting Minutes January 19, 2016
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
e
Meeting Minutes
Tuesday, January 19, 2016
9:00 AM
Council Chambers
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes January 19, 2016
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 — City Manager, Jill Silverboard —Assistant City
Manager, 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.
1. Call To Order— Chair Cretekos
The meeting was called to order at 10:49 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the December 14, 2015 Pension Trustees Meeting as
submitted in written summation by the City Clerk.
Trustee Hock-DiPolito moved to approve the minutes of the
December 14, 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.
Name/Job Classification/Department Pension
Eligibility Date
Alex McFarlane, Engineering Technician, Gas Department 10/27/2015
Meredith Kambic*, Librarian I, Library Department 10/31/2015
Ryan Gibbs **, Police Officer, Police Department 10/31/2015
Jerramee King, Parks Service Technician I, Parks and Recreation 11/02/2015
Travis Presley, Parks Service Technician I, Parks and Recreation 11/02/2015
Gerard Burney, Parks Service Technician I, Parks and Recreation 11/02/2015
Jeff Buffie, Engineering Technician, Gas Department 11/02/2015
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Pension Trustees Meeting Minutes January 19, 2016
Pablo Benitez, Gas Technician I, Gas Department 11/02/2015
Dieunice Deris, Human Resources Analyst, Human Resources 11/02/2015
Christin Harris ***, Code Enforcement Inspector, Planning and Dev. 11/02/2015
Breanna Reed, Police Communication Operator Trainee, Police Dept. 11/02/2015
Raquel Pioquinto Pena, Police Comm. Trainee, Police Department 11/02/2015
Maria Scott, Solid Waste Accounts Coordinator, Solid Waste Department 11/02/2015
Mario Parades, Graphics Designer, Public Communications 11/16/2015
Tarik Jones ****, Solid Waste Worker, Solid Waste Department 11/16/2015
* Meredith Kambic was employed in temporary positions from 2/25/2014 to 11/25/2014 and from
8/11/2015 to 10/02/2015. She was hired into a part time position 10/03/2015 and then a full time
position 10/31/2015. She will be eligible for pension as of 10/31/2015.
** Ryan Gibbs was employed as a Police Cadet from 10/19/2015 to 10/30/2015. He was
promoted into a Police Officer position effective 10/31/2015 and will be eligible for pension as of
10/31/2015.
***Christin Harris was previously employed with the City of Clearwater from 2/27/2012 to
3/30/2014. She was rehired 11/2/2015 and will be eligible for pension as of 11/2/2015.
****Tarik Jones was employed in a temporary part time position from 4/11/2003 to 11/04/2003.
He was hired into a full time position effective 11/17/2003 and resigned effective 6/13/2015. He
was rehired 11/16/2015 and will be eligible for pension as of 11/16/2015.
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 employee Robin Gomez, City Auditor, to vest his
pension as provided by Section 2.419 of the Employees' Pension Plan.
Robin Gomez, City Auditor, was employed by the City on September 16, 1996,
and began participating in the Pension Plan on that date. Mr. Gomez
terminated from city employment on November 25, 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
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City of Clearwater
Pension Trustees Meeting Minutes January 19, 2016
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. Gomez will meet the non-hazardous duty criteria and
begin collecting a pension in October 2026.
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.
Trustee Hamilton moved to approve the following request of
employee Robin Gomez, City Auditor, to vest his pension 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 Paul Chute, Public Utilities Department,
and Leonard Merritt, Police Department, for a regular pension as provided by Sections
2.416 and 2.424 of the Employees' Pension Plan.
Paul Chute, Wastewater Treatment Plant Oper B, Public Utilities Department,
was employed by the City on October 21, 1991, and his pension service credit
is effective on that date. His pension will be effective December 1, 2015.
Based on an average salary of approximately $43,364.14 over the past five
years, the formula for computing regular pensions and Mr. Chute's selection of
the 100% Joint and Survivor Annuity, this pension benefit will be approximately
$24,601.80 annually.
Leonard Merritt, Police Officer, Police Department, was employed by the City
on February 6, 1995, and his pension service credit is effective on that date.
His pension will be effective January 1, 2016. Based on an average salary of
approximately $74,207.40 over the past five years, the formula for computing
regular pensions and Mr. Merritt's selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $41,570.04 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
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City of Clearwater
Pension Trustees Meeting Minutes January 19, 2016
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. Chute has 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. Mr. Merritt has met the
hazardous duty criteria.
Trustee Jonson moved to approve the following request of
employees Paul Chute, Public Utilities Department, and Leonard
Merritt, Police 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 Charter for the City of Clearwater Employees' Pension Investment
Committee.
The proposed Charter codifies the structure, responsibilities, and authority of
the pension investment committee.
The committee meets quarterly and serves as an advisory committee making
investment-related recommendations to the Pension Trustees. The committee
is also responsible for performance monitoring of the plan's money managers.
The committee consists of the City's Finance Director, Assistant Finance
Director, Accounting Manager, Debt Manager, one citizen appointed by
Council, and representatives from each of the employee unions.
Trustee Hock-DiPolito moved to approve the Charter for the City of
Clearwater Employees' Pension Investment Committee. The motion
was duly seconded and carried unanimously.
4.5 Approve agreement hiring IFM Global Infrastructure (US), L.P. as an infrastructure
money manager for the pension plan, and authorize the appropriate officials to
execute same.
The Pension Investment Committee instructed the plan's investment
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Pension Trustees Meeting Minutes January 19, 2016
consultant, CapTrust, to conduct a manager search for an infrastructure money
manager.
It is expected that the infrastructure asset class will further diversify the plan's
portfolio, and reduce volatility due to relatively stable cash flow streams and
low correlation to the equity and fixed income portfolio investments.
Additionally, infrastructure assets are viewed as an attractive investment for
the plan due to stable demand and cash flows per"captive" customer bases;
assets with long life spans matching the plan's long term investment strategy;
increased global demand for privatization of infrastructure due to demand
growth and lack of public funding; and relatively high barriers to entry for
investors.
The committee invited a short list of three firms for oral presentations: JP
Morgan, IFM Investors, and UBS Global Asset Management, and chose IFM
Investors IFM Global Infrastructure (US), L.P. for recommendation to the
Trustees.
The proposed investment is $30 million, representing approximately 3.5% of
the plan's portfolio, to be funded by a reduction in exposure to equities.
IFM's US LP fund has returns (net of fees) of 8.5% for one year; 6.5% for three
years; and 8.3% since inception in 2004, as of September 30, 2015.
Sector allocations of the fund include airports, electricity transmission and
distribution, water and wastewater, electricity generation, pipelines and related
infrastructure, telecommunications, and steam and hot water supply. Recent
geographic allocations were approximately 70% international and 30% in the
United States.
Management fees are 0.97% of the portfolio value, with additional performance
fees of 20% of the net realized and unrealized appreciation in excess of 8%
annually, calculated over rolling three-year periods.
The Plan's Pension Attorney, Stu Kaufman with Klausner, Kaufman, Jensen
and Levinson, has reviewed the agreements and his recommended changes
have been incorporated.
In response to a question, Finance Director Jay Ravins said the
proposed rate is the standard fee. IFM proposed the lowest fee rate.
Trustee Polglaze moved to approve agreement hiring IFM Global
Infrastructure (US), L.P. as an infrastructure money manager for the
pension plan, and authorize the appropriate officials to execute
same. The motion was duly seconded and carried unanimously.
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City of Clearwater
Pension Trustees
5. Adjourn
Meeting Minutes
The meeting adjourned at 10 :54 a.m.
City of Clearwater
January 19, 2016
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Chair
Employees' Pension Plan Trustees
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