03/14/2016 Pension Trustees Meeting Minutes March 14, 2016
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
e d
s
w
r'
�mu
Meeting Minutes
Monday, March 14, 2016
1 :00 PM
Council Chambers
Pension Trustees
Page 1
City of Clearwater
Pension Trustees Meeting Minutes March 14, 2016
Roll Call
Present 5 — Chair George N. Cretekos, Trustee Jay E. Polglaze, Trustee
Doreen Hock-DiPolito, Trustee Hoyt Hamilton, and Trustee Bill Jonson
Also Present—William B. Horne — City Manager, Jill Silverboard —Assistant City
Manager, Pamela K. Akin — City Attorney, Rosemarie Call — City
Clerk, Nicole Sprague — Official Records and Legislative Services
Coo rd in ator
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 1:22 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the February 16, 2016 Pension Trustees meeting as
submitted in written summation by the City Clerk.
Trustee Hamilton moved to approve the minutes of the February 16,
2016 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
Jason Beisel, Public Information Coordinator, Public Communications 1/06/2016
Marissa Prosser *, Recreation Leader, Parks and Recreation 1/09/2016
Donna Kenny, Customer Service Coordinator, Customer Service 1/11/2016
Joseph Heaton, Fleet Mechanic, General Services 1/11/2016
Page 2
City of Clearwater
Pension Trustees Meeting Minutes March 14, 2016
William Pancoe, Plumber, General Services 1/11/2016
Johnareus Young, Parks Service Technician I, Parks and Recreation 1/11/2016
Myles Collier, Parks Service Technician I, Parks and Recreation 1/11/2016
Erik White, Utilities Mechanic, Public Utilities 1/11/2016
Paul Toffolo, Electronics Technician, Public Utilities 1/11/2016
Hatem Elgendy, Utilities Chemist, Public Utilities 1/11/2016
Patrick Flynn, Wastewater Treatment Plant Operator Trainee, Public Utilities 1/11/2016
Kevin Dubie, Solid Waste Equipment Operator, Solid Waste 1/11/2016
Robert Bostick, Jr. **, Solid Waste Worker, Solid Waste 1/11/2016
Amber Brice ***, Library Programming Specialist, Library 1/11/2016
Justin Bowman, Utilities Chemist, Public Utilities 1/25/2016
Brandon Coulter, Utilities Mechanic, Public Utilities 1/25/2016
Michael Shumaker, Recreation Supervisor II, Parks and Recreation 1/25/2016
John Cassidy, Wastewater Treatment Plant Operator Trainee, Public Utilities 1/25/2016
Tim Sunderman, Wastewater Treatment Plant Operator Trainee, Public Utilities 1/25/2016
* Marissa Prosser was employed in a temporary part-time position from
08/24/2015 to 01/08/2016. She was hired into a full time position 01/09/2016
and will be eligible for pension as of 01/09/2016.
** Robert Bostick, Jr. was employed in a temporary part-time position from
09/08/2015 to 01/10/2016. He was hired into a full time position 01/11/2016
and will be eligible for pension as of 01/11/2016.
***Amber Brice was employed in a part time position from 01/26/2015 to
01/10/2016. She was hired into a full time position 01/11/2016 and will be
eligible for pension as of 01/11/2016.
Trustee Jonson 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 Dewayne Broadwater, Parks and
Recreation Department to vest his pension as provided by Section 2.419 of the
Employees' Pension Plan.
Dewayne Broadwater, Spray Technician III, Park and Recreation Department,
was employed by the City on October 16, 1995, and began participating in the
Page 3
City of Clearwater
Pension Trustees Meeting Minutes March 14, 2016
Pension Plan on that date. Mr. Broadwater will terminate from City
employment on February 16, 2016.
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 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. Broadwater will meet the non-hazardous duty criteria and
begin collecting a pension in November 2016.
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 Hock-DiPolito moved to approve the following request of
employee Dewayne Broadwater, Parks and Recreation Department
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 Jennifer Mortell, Library Department, and
Tereasa Roose, Library Department, for a regular pension as provided by Sections
2.416 and 2.424 of the Employees' Pension Plan.
Jennifer Mortell, Librarian II, Library Department, was employed by the City on
Page 4
City of Clearwater
Pension Trustees Meeting Minutes March 14, 2016
January 12, 2004, and her pension service credit is effective on that date. Her
pension will be effective April 1, 2016. Based on an average salary of
approximately $45,249.46 over the past five years, the formula for computing
regular pensions and Ms. Mortell's selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $12,847.08 annually.
Tereasa Roose, Librarian III, Library Department, was employed by the City on
April 29, 1996, and her pension service credit is effective on that date. Her
pension will be effective May 1, 2016. Based on an average salary of
approximately $49,311.76 over the past five years, the formula for computing
regular pensions and Ms. Roose's selection of the Life Annuity, this pension
benefit will be approximately $27,125.16 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. Mortell and Ms. Roose 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.
Trustee Polglaze moved to approve the following request of
employees Jennifer Mortell, Library Department, and Tereasa
Roose, Library 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 termination of international equity money manager Earnest Partners (EP)
and authorize the appropriate officials to execute same.
Earnest Partners was hired as an international equity manager for the plan in
April 2008. Initial performance was very good (55.54% return and 15th
Page 5
City of Clearwater
Pension Trustees
5. Adiourn
Meeting Minutes March 14, 2016
percentile ranking in 2009), but performance has steadily declined in recent
years, as summarized below. The Pension Investment Committee
recommends termination at this time.
Percentile
EP Ranking Benchmark
Last 3 years 0.25% 80th 4.07%
Last 5 years 1.91% 75th 3.24%
In July 2015 the Pension Trustees approved the termination of an international
money manager, Wentworth, Hauser and Violich, and the hiring of two
international money managers, Thompson, Siegel and Walmsley LLC (TS &W)
and WCM Investment Management (WCM), in anticipation of this possible
future action of terminating another international money manager.
The Pension Investment Committee has already moved approximately $30
million of the $37 million previously allocated to Earnest Partners to TS &W and
WCM equally, leaving a balance of approximately $7 million with Earnest
Partners. Upon termination the $7 million would also be equally allocated to
TS &W and WCM.
In response to questions, Finance Director Jay Ravins said the poor
performance was not related to staffing changes but stock selection and
the countries they were investing in fell out of favor. The new money
managers have been performing well; top 50% percentile since they
were hired.
Trustee Hamilton moved to approve the termination of international
equity money manager Earnest Partners (EP) and authorize the
appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
The meeting adjourned at 1:27 p.m.
City of Clearwater
e c b O f Q r crek koJ
Chair
Employees' Pension Plan Trustees
Page 6