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06/13/2016 Pension Trustees Meeting Minutes June 13, 2016 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 9 ' e Meeting Minutes Monday, June 13, 2016 1 :00 PM Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes June 13, 2016 Roll Call Present 5 - Chair George N. Cretekos, Trustee Doreen Caudell, Trustee Bob Cundiff, 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 1:44 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the May 16, 2016 Pension Trustees Meeting as submitted in written summation by the City Clerk. Trustee Jonson moved to approve the minutes of the May 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 Jenae Swann */Recreation Leader/Parks and Recreation 04/02/2016 Ernesto Vildostegui **/Wastewater Treatment Plant Operator Trainee/Public Utilities 04/02/2016 Marilyn John/Librarian II/Library 04/04/2016 Jason Alber/Drafting & Mapping Technician/Engineering 04/04/2016 Lisa Weber/Accounting Technician/Gas Department 04/04/2016 John San Antonio/Fleet Mechanic/General Services 04/04/2016 Page 2 City of Clearwater Pension Trustees Meeting Minutes June 13, 2016 Kelsey Viars/Police Officer/Police Department 04/18/2016 Langston Woodie/Police Officer/Police Department 04/18/2016 Matthew Prianciani/Police Officer/Police Department 04/18/2016 Kyle McCall/Police Communications Operator Trainee/Police Department 04/18/2016 Nicholas Lawn/Economic Development Specialist/Economic Development& Housing 04/18/2016 Matthew Fretwell/Field Service Representative I/Customer Service 04/18/2016 Ronan Thomas/Stormwater Technician I/Engineering 04/18/2016 Cody Foster/Gas Technician I/Gas Department 04/18/2016 Brett Jennings ***/Gas Technician I/Gas Department 04/18/2016 Phillip Greene/Gas Technician I/Gas Department 04/18/2016 Kyle Lantz/Systems Analyst/Information Technology 04/18/2016 Dominic Sharp ****/Solid Waste Worker/Solid Waste 04/18/2016 Dale Evans/Parks Service Technician I/Parks and Recreation 04/18/2016 *Jenae Swann was employed in a seasonal position from 05/30/2015 to 01/08/2016, and then rehired into a part time position on 01/09/2016. She was hired into a full time full time position on 04/02/2016 and will be eligible for pension as of 04/02/2016. ** Ernesto Vildostegui was employed in a seasonal part-time positions from 03/06/2011 to 04/05/2012, 05/08/2012 to 11/30/2012, and 07/13/2015 to 11/27/2015. He was employed in a part time position from 11/28/2015 to 04/01/2016 and then hired into a full time position on 04/02/2016. He will be eligible for pension as of 04/02/2016. ***Brett Jennings was previously employed with the City of Clearwater. He was initially in a temporary position from 11/23/2009 to 02/28/2010, and was then hired into a full time position 03/01/2010. He resigned effective 08/17/2012, and was rehired 04/18/2016. He is eligible for pension as of 04/18/2016. **** Dominic Sharp was employed in a temporary position from 02/22/2016 to 04/17/2016. He was hired into a full time full time position on 04/18/2016 and will be eligible for pension as of 04/18/2016. Trustee Caudell 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 Gary Kepner, Solid Waste General Services Department and Shari Lepper, Human Resources Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. Gary Kepner, Solid Waste Supervisor I, Solid Waste General Services Department, was employed by the City on October 13, 1997, and began participating in the Pension Plan on that date. Mr. Kepner terminated from city employment on April 9, 2016. Shari Lepper, Human Resources Office Assistant, Human Resources Department, was employed by the City on June 16, 2003, and began participating in the Pension Plan on that date. Ms. Lepper changed status from full-time to part-time on October 4, 2014. The Employees' Pension Plan provides that should an employee cease to be Page 3 City of Clearwater Pension Trustees Meeting Minutes June 13, 2016 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. Kepner will meet the non-hazardous duty criteria and begin collecting a pension in November 2019. Ms. Lepper will meet the non-hazardous duty criteria and begin collecting a pension in July 2023. 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 Cundiff moved to approve the following request of employees Gary Kepner, Solid Waste General Services Department and Shari Lepper, Human Resources 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 changes to the City of Clearwater Employees' Pension Statement of Investment Objectives and Guidelines (Investment Policy) to add scrutinized companies restrictions required by Florida Statutes; update portfolio asset allocation limits; update investment performance benchmark indexes and benchmarks; increase allowable leverage for real estate money managers; and to make grammatical and other minor changes as recommended by the Plan's Investment Committee. Page 4 City of Clearwater Pension Trustees 5. Adjourn Attest City Clerk City of Clearwater Meeting Minutes June 13, 2016 consultant, CapTrust; the Plan's pension attorney, Klausner, Kaufman, Jensen & Levinson; and the Plan's Investment Committee for necessary revisions. A significant change to the policy is the addition of "scrutinized companies" restrictions per Florida Statutes Section 215.473(t), as recommended by the pension attorney. Updates have also been made to several performance measurement indexes and asset allocation limits. The average debt leverage limit for real estate money managers has been increased from 40% to 50% to reflect the recent addition of core plus real estate as an investment category. Grammatical corrections and other minor changes have been made upon recommendations of the investment consultant, pension attorney, and Pension Investment Committee. Trustee Hamilton moved to approve changes to the City of Clearwater Employees' Pension Statement of Investment Objectives and Guidelines (Investment Policy) to add scrutinized companies restrictions required by Florida Statutes; update portfolio asset allocation limits; update investment performance benchmark indexes and benchmarks; increase allowable leverage for real estate money managers; and to make grammatical and other minor changes as recommended by the Plan's Investment Committee. The motion was duly seconded and carried unanimously. The meeting adjourned at 1:48 p.m. cp(ict\cr?e fio) Chair Employees' Pension Plan Trustees ge 5