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12/12/2016 Pension Trustees Meeting Minutes December 12, 2016 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 e d s w r' �mu Meeting Minutes Monday, December 12, 2016 1 :00 PM Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes December 12, 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 — Deputy 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 1:42 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the November 15, 2016 Pension Trustees Meeting as submitted in written summation by the City Clerk. Trustee Cundiff moved to approve the minutes of the November 15, 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 Catherine Cotton *, Fire Inspector II, Fire 10/03/2016 Jordan Tellone, Fire Medic, Fire 10/03/2016 James Griffin, Fire Medic, Fire 10/03/2016 Chase Westbrook, Fire Medic, Fire 10/03/2016 Logan Chaple, Fire Medic, Fire 10/03/2016 Page 2 City of Clearwater Pension Trustees Meeting Minutes December 12, 2016 Michael McKnight, Fire Medic, Fire 10/03/2016 Jack Cresap, Fire Medic, Fire 10/03/2016 George Lewis-Saldana, Fire Medic, Fire 10/03/2016 Derek Silver, Fire Medic, Fire 10/03/2016 Patrick Curry, Fire Medic, Fire 10/03/2016 Chris Smaha, Fire Medic, Fire 10/03/2016 Eric Rodriguez, Fire Medic, Fire 10/03/2016 Carlos Rivera, Fire Medic, Fire 10/03/2016 Jason Lubecki, Parks Service Technician I, Parks and Rec. 10/03/2016 Karlen Harrison Kane **, Librarian I, Library 10/15/2016 Amanda DeWitt***, Library Assistant, Library 10/15/2016 Danielle Jansen ****, Library Assistant, Library 10/15/2016 Sarah Jameson *****, Librarian I, Library 10/15/2016 Chris Lanni, Parks Service Technician I, Parks and Rec. 10/17/2016 Garrett Banks, Police Officer, Police 10/17/2016 James Brady, Police Officer, Police 10/17/2016 Jesse Leeman, Police Officer, Police 10/17/2016 Christopher Roberts, Police Officer, Police 10/17/2016 Cody Steele, Police Officer, Police 10/17/2016 James "Ethan" Yazinski, Police Officer, Police 10/17/2016 Michael Bright, Solid Waste Worker, Solid Waste 10/17/2016 Ryan Alexander, Waste Water Treatment Plant Oper., Public Utilities 10/17/2016 Hector Noyas, Fire Inspector II, Fire 10/24/2016 * Catherine Cotton was previously employed from 01/23/2006 to 12/27/2006. She was rehired on 10/03/2016 and will be eligible for pension on 10/03/2016. ** Karlen Harrison Kane was employed in a part time position from 11/16/2015 to 10/14/2016 and hired into a full time position on 10/15/2016. She will be eligible for pension as of 10/15/2016. ***Amanda DeWitt was employed in a temporary position from 12/07/2015 to 03/30/2016 and apart time position from 04/02/2016 to 10/14/2016. She was hired into a full time position on 10/15/2016 and will be eligible for pension as of 10/15/2016. **** Danielle Jansen was employed in a temporary position from 05/27/2015 to 08/072015 and apart time position from 08/08/2015 to 10/14/2016. She was hired into a full time position on 10/15/2016 and will be eligible for pension as of 10/15/2016. ***** Sarah Jameson was employed in a part time position from 09/08/2014 to 10/14/2016. She was hired into a full time position on 10/15/2016 and will be eligible for pension as of 10/15/2016. Trustee Hamilton moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. Page 3 City of Clearwater Pension Trustees Meeting Minutes December 12, 2016 4.2 Approve the following request of employee Richard Riley, Fire Department to vest his pension as provided by Section 2.419 of the Employees' Pension Plan. Richard Riley, Fire Division Chief, Fire Department, was employed by the City on May 23, 2005, and began participating in the Pension Plan on that date. Mr. Riley terminated from City employment on October 10, 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. 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. Riley will meet the hazardous duty criteria and begin collecting pension in April 2020. Trustee Caudell moved to approve the following request of employee Richard Riley, Fire 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 William Harding, Police Department, Page 4 City of Clearwater Pension Trustees Meeting Minutes December 12, 2016 Christopher Squitieri, Police Department, and Christopher White, Police Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. William Harding, Police Officer, Police Department, was employed by the City on July 15, 2002, and his pension service credit is effective on that date. His pension will be effective November 1, 2016. Based on an average salary of approximately $71,663.95 over the past five years, the formula for computing regular pensions and Mr. Harding's selection of the Life Annuity, this pension benefit will be approximately $28,968.48 annually. Christopher Squitieri, Police Sergeant, Police Department, was employed by the City on January 17, 1990, and his pension service credit is effective on that date. His pension will be effective December 1, 2016. Based on an average salary of approximately $94,916.67 over the past five years, the formula for computing regular pensions and Mr. Squitieri's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $68,707.44 annually. Christopher White, Police Sergeant, 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 November 1, 2016. Based on an average salary of approximately $82,952.85 over the past five years, the formula for computing regular pensions and Mr. White's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $48,631.20 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. 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 Page 5 City of Clearwater Pension Trustees Meeting Minutes December 12, 2016 years and completed ten years of credited service. Mr. Harding, Mr. Squitieri and Mr. White have met the hazardous duty criteria. Trustee Cundiff moved to approve the following request of employees William Harding, Police Department, Christopher Squitieri, Police Department, and Christopher White, 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 Award a contract for pension plan actuarial services for the five-year period ending December 31, 2021 to Gabriel, Roeder, Smith and Company for a not-to-exceed amount of$165,850 and authorize the appropriate officials to execute same. Annually, the pension plan requires an actuarial valuation of the plan to determine the City's funding contribution, as well as annual benefit statements to be provided to all employees participating in the plan. In addition, a separate actuarial valuation is required annually for financial reporting per Governmental Accounting Standards Board (GASB) requirements. The State of Florida also requires separate annual reporting from the actuary per Chapter 112.664 Florida Statutes. Finally, the pension plan ordinance requires an actuarial "experience study" at least every six years, analyzing the mortality, service, and compensation experience to determine whether related actuarial assumptions require adjustment. Request for Proposal (RFP) 50-16 was issued in September 2016, with proposals received in October. The RFP selection committee consisting of the HR Director, HR Manager, Finance Director, Finance Assistant Director, and the Senior Pension Payroll Analyst, unanimously chose Gabriel, Roeder, Smith & Company (GRS) from the five respondents for pension plan actuarial services. GRS has been the actuary for the pension plan since January 2010. The annual fee for the actuarial valuation for funding purposes, along with employee benefit statements, will be $18,500. The annual fee for the actuarial valuation for GASB-required financial reporting purposes is $5,500. The fee for annual reporting required per Chapter 112.664 Florida Statutes will be $3,000. Finally, the experience study fee is $22,500. Subsequent fees will be adjusted annually for inflation, not to exceed 3% annually. As needed, additional services will be provided per various hourly rates provided in the agreement fee schedule, to be adjusted annually. APPROPRIATION CODE AND AMOUNT: Funds are available in cost code 646-07410-530100-585-000-0000 to fund this agreement. Page 6 City of Clearwater Pension Trustees 5. Adjourn Meeting Minutes December 12, 2016 In response to questions, Finance Director Jay Ravins said the City Charter requires actuarial firms to be rotated every five years. Prior to 2010, Price Waterhouse Coopers was the Plan's actuarial firm. Trustee Jonson moved to award a contract for pension plan actuarial services for the five -year period ending December 31, 2021 to Gabriel, Roeder, Smith and Company for a not -to- exceed amount of $165,850 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Attest � cc: c2 City Clerk City of Clearwater The meeting adjourned at 1 :48 p.m. -- qW (A QnCr e \aos Chair Employees' Pension Plan Trustees Page 7