07/21/2016 Pension Trustees Meeting Minutes July 21, 2016
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
B I
d,
I
0
T
Meeting Minutes
Thursday, July 21, 2016
6:00 PM
Council Chambers
Pension Trustees
Page 1
City of Clearwater
Pension Trustees Meeting Minutes July 21, 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
Coordinator, and Joe Roseto — Human Resources Director
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 6:14 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the June 13, 2016 Pension Trustees Meeting as submitted in
written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the June 13, 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
Theresa Hughes, Field Service Representative I, Customer Service 05/02/2016
Christopher Bennett, Solid Waste Equipment Operator, Solid Waste 05/02/2016
Michael Dominguez, Solid Waste Equipment Operator, Solid Waste 05/02/2016
Lloyd Briscoe, Solid Waste Equipment Operator, Solid Waste 05/02/2016
Page 2
City of Clearwater
Pension Trustees Meeting Minutes July 21, 2016
Andrea Moreira, Aquatic Programmer, Parks and Recreation 05/02/2016
Sharon Hollifield *, Code Enforcement Inspector, Planning and Dev. 05/02/2016
Michael Robinson **, Librarian I, Library 05/15/2016
Nathan Huffman, Public Utilities Technician I, Public Utilities 05/16/2016
Jasia Shaver, Accounting Clerk, Finance 05/16/2016
Anelise Wilhelm, Senior Systems Programmer, IT 05/16/2016
Zane Liebrum, Parks Service Technician I, Parks and Recreation 05/16/2016
Michael Bryant ***, Parking Technician, Engineering 05/16/2016
* Sharon Hollifield was employed in a part time position from 02/08/2016 to
05/01/2016, and then hired into a full time position on 05/02/2016. She will be
eligible for pension as of 05/02/2016.
** Michael Robinson was employed in a part time position from 11/18/2013 to
05/14/2016, and then hired into a full time position on 05/15/2016. He will be
eligible for pension as of 05/15/2016.
** Michael Bryant was employed in a part time position from 02/08/2016 to
05/13/2016, and then hired into a full time position on 05/14/2016. He will be
eligible for pension as of 05/14/2016.
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 Thomas Carrick, Planning and
Development Department, John Fellenbaum, Police Department, Ann Galluccio,
Library Department, Joanne Hilbert, Police Department, Dina Hyson, Human
Resources Department, Danny Jones, Fire Department, and Mark Smyth, Fire
Department for a regular pension as provided by Sections 2.416 and 2.424 of the
Employees' Pension Plan.
Thomas Carrick, Assist Building Official, Planning and Development
Department, was employed by the City on April 15, 1996, and his pension
service credit is effective on that date. His pension will be effective June 1,
2016. Based on an average salary of approximately $62,715.85 over the past
five years, the formula for computing regular pensions and Mr. Carrick's
selection of the Life Annuity with a 10% Partial Lump Sum, this pension benefit
will be approximately $31,229.64 annually.
Page 3
City of Clearwater
Pension Trustees Meeting Minutes July 21, 2016
John Fellenbaum, Police Officer, Police Department, was employed by the City
on July 8, 1996, and his pension service credit is effective on that date. His
pension will be effective August 1, 2016. Based on an average salary of
approximately $89,017.88 over the past five years, the formula for computing
regular pensions and Mr. Fellenbaum's selection of the Joint and Survivor
Annuity with a 10% Partial Lump Sum, this pension benefit will be
approximately $44,070.00 annually.
Ann Galluccio, Library Assistant, Library Department, was employed by the
City on January 27, 2003, and her pension service credit is effective on that
date. Her pension will be effective August 1, 2016. Based on an average
salary of approximately $26,159.29 over the past five years, the formula for
computing regular pensions and Ms. Galluccio's selection of the Life Annuity,
this pension benefit will be approximately $9,673.56 annually.
Joanne Hilbert, Police Communication Operator, Police Department, was
employed by the City on December 12, 1988, and her pension service credit is
effective on that date. Her pension will be effective July 1, 2016. Based on an
average salary of approximately $54,360.85 over the past five years, the
formula for computing regular pensions and Ms. Hilbert's selection of the 100%
Joint and Survivor Annuity, this pension benefit will be approximately
$37,843.80 annually.
Dina Hyson, Human Resources Manager, Human Resources Department, was
employed by the City on October 9, 1992, and her pension service credit is
effective on that date. Her pension will be effective August 1, 2016. Based on
an average salary of approximately $78,290.95 over the past five years, the
formula for computing regular pensions and Ms. Hyson's selection of the 10
Year Certain and Life Annuity, this pension benefit will be approximately
$50,631.60 annually.
Danny Jones, Fire Assistant Chief, Fire Department, was employed by the City
on May 4, 1987, and his pension service credit is effective on that date. His
pension will be effective June 1, 2016. Based on an average salary of
approximately $113,486.65 over the past five years, the formula for computing
regular pensions and Mr. Jones' selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $88,185.24 annually.
Mark Smyth, Fire Lieutenant, Fire Department, was employed by the City on
April 1, 1981, and his pension service credit is effective on that date. His
pension will be effective June 1, 2016. Based on an average salary of
approximately $82,257.01 over the past five years, the formula for computing
regular pensions and Mr. Smyth's selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $77,508.96 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
Page 4
City of Clearwater
Pension Trustees Meeting Minutes July 21, 2016
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. Carrick, Ms. Galluccio, Ms. Hilbert and Ms. Hyson 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. Mr. Fellenbaum, Mr. Jones
and Mr. Smyth have met the hazardous duty criteria.
Trustee Cundiff moved to Approve the following request of employees
Thomas Carrick, Planning and Development Department; John
Fellenbaum, Police Department; Ann Galluccio, Library Department;
Joanne Hilbert, Police Department; Dina Hyson, Human
Resources Department; Danny Jones, Fire Department; and Mark
Smyth, Fire 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.
4.3 Approve the City of Clearwater Employees' Pension Plan as lead plaintiff in litigation
against CBL and Associates Properties, Inc. regarding investment losses to the Plan;
retain Kessler Topaz Meltzer and Check, LLP as legal counsel in this regard and
authorize staff to negotiate a retainer agreement with Kessler Topaz Meltzer and
Check, LLP.
In December 2011, the Pension Trustees approved a contract retaining
Kessler Topaz Meltzer& Check, LLP (Kessler) 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.
Kessler has recommended that the Pension Plan apply for lead plaintiff status
in a litigation action against CBL & Associates Properties, Inc (CBL), a
Delaware corporation headquartered in Chattanooga, Tennessee. CBL
operates as a real estate investment trust (REIT) and owns 147 properties,
including 91 regional malls/open-air centers, in 31 states.
Page 5
City of Clearwater
Pension Trustees
5. Adjourn
Attest
Meeting Minutes July 21, 2016
A May 24, 2016 report in the Wall Street Journal (WSJ) disclosed that CBL is
under investigation by the Federal Bureau of Investigation (FBI) and the U.S.
Securities and Exchange Commission (SEC) in connection with providing false
information to lenders. The WSJ also reported that FBI and SEC officials are
questioning CBL's relationship with Senator Robert Corker, who has made
millions of dollars in profits trading in CBL's stock. On this news, the price of
CBL's stock experience a single day price decline of 8.3 %. The City of
Clearwater Employees' Pension Plan sustained estimated losses of $616,000.
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
diligence in protecting Plan assets.
The retainer 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
only.
The pension plan's attorneys, Klausner, Kaufman, Jensen, & Levinson, as well
as the plan's investment consultant, CapTrust, concur with pursuing lead
plaintiff status.
Trustee Hamilton moved to Approve the City of Clearwater Employees'
Pension Plan as lead plaintiff in litigation against CBL and Associates
Properties, Inc. regarding investment losses to the Plan;
retain Kessler Topaz Meltzer and Check, LLP as legal counsel in this
regard and authorize staff to negotiate a retainer agreement with
Kessler Topaz Meltzer and Check, LLP. The motion was duly seconded
and carried unanimously.
The meeting adjourned at 6:18 p.m.
City Clerk
City of Clearwater
cle,9 ,e le05
Employees' Pension Plan Trustees