02/13/2017 Pension Trustees Meeting Minutes February 13, 2017
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
e d
s
w
r'
�mu
Meeting Minutes
Monday, February 13, 2017
1 :00 PM
Council Chambers
Pension Trustees
Page 1
City of Clearwater
Pension Trustees Meeting Minutes February 13, 2017
Roll Call
Present 4 - Chair George N. Cretekos, Trustee Doreen Caudell, Trustee Hoyt
Hamilton, and Trustee Bill Jonson
Absent 1 - Trustee Bob Cundiff
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 1:05 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the January 17, 2017 Pension Trustees Meeting as submitted
in written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the January 17,
2017 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
Joshua Maxey, Parking Assistant, Engineering 11/28/2016
Rino Landa, Librarian II, Library 11/28/2016
Tammy Winkler, Librarian II, Library 12/12/2016
Logan Davis, Parks Service Technician I, Parks and Rec. 12/12/2016
Zaeinulabddin Adam, Senior Planner, Planning and Dev. 12/12/2016
Daniel Rowland, Electro-Mechanical Tech, Public Utilities 12/12/2016
Ila Petrov, Utilities Chemist, Public Utilities 12/12/2016
Page 2
City of Clearwater
Pension Trustees Meeting Minutes February 13, 2017
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 Michael Blake, Public Utilities
Department, Donald Melone, Engineering Department, Kevin O'Connor, Fire
Department and Mary Weaver, Planning and Development Department, for a regular
pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan.
Michael Blake, Public Utilities Technician II, Public Utilities Department, was
employed by the City on January 19, 1987, and his pension service credit is
effective on that date. His pension will be effective February 1, 2017. Based
on an average salary of approximately $51,065.73 over the past five years, the
formula for computing regular pensions and Mr. Blake's selection of the 50%
Joint and Survivor Annuity, this pension benefit will be approximately
$39,705.60 annually.
Donald Melone, Engineering Specialist I, Engineering Department, was
employed by the City on February 17, 1981, and his pension service credit is
effective on that date. His pension will be effective February 1, 2017. Based
on an average salary of approximately $66,493.76 over the past five years, the
formula for computing regular pensions and Mr. Malone's selection of the 75%
Joint and Survivor Annuity, this pension benefit will be approximately
$65,530.68 annually.
Kevin O'Connor, Firefighter/Driver Operator, Fire Department, was employed
by the City on May 28, 1996, and his pension service credit is effective on that
date. His pension will be effective February 1, 2017. Based on an average
salary of approximately $68,940.67 over the past five years, the formula for
computing regular pensions and Mr. O'Connor's selection of the 10 Year
Certain and Life Annuity, this pension benefit will be approximately $39,197.04
annually.
Mary Weaver, Sign Inspector, Planning and Development Department, was
employed by the City on June 27, 1994, and her pension service credit is
effective December 9, 1996. Her pension will be effective February 1, 2017.
Based on an average salary of approximately $47,467.32 over the past five
years, the formula for computing regular pensions and Ms. Weaver's selection
of the Life Annuity, this pension benefit will be approximately $26,259.36
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 3
City of Clearwater
Pension Trustees Meeting Minutes February 13, 2017
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. Blake, Mr. Melone and Ms. Weaver 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. O'Connor has met the
hazardous duty criteria.
Trustee Hamilton moved to approve the following request of
employees Michael Blake, Public Utilities Department, Donald
Melone, Engineering Department, Kevin O'Connor, Fire Department
and Mary Weaver, Planning and Development 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 Novo Nordisk A/S regarding investment losses to the Plan; retain Saxena
White, P.A. as legal counsel in this regard and authorize staff to negotiate a retainer
agreement with Saxena White, P.A.
In December 2011, the Pension Trustees approved a contract retaining
Saxena White, P.A. 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.
Saxena White has recommended that the Pension Plan apply for lead plaintiff
status in a litigation action against Novo Norkisk A/S, based in Denmark. Novo
Nordisk is a global healthcare company focused on diabetes care and is one of
the world's largest producers of insulin medications.
On January 11, 2017, a securities class action complaint was filed against
Novo Nordisk in the U.S. District Court for the District of New Jersey asserting
Page 4
City of Clearwater
Pension Trustees Meeting Minutes February 13, 2017
claims under the Securities Exchange Act of 1934 (Exchange Act) on behalf of
shareholders who purchased Novo Nordisk stock between April 30, 2015 and
October 27, 2016. The Complaint contends that, during the Class Period,
Defendants violated provisions of the Exchange Act by issuing false and
misleading press releases, financial statements, filings with the U.S. Securities
and Exchange Commission (SEC), and statements during investor conference
calls. Specifically, the Complaint alleges that, throughout the Class Period,
Novo Nordisk reported materially false and misleading earnings and forecasts
that were inflated through the collusive price fixing of the Company's insulin
drugs. The Complaint also alleges that Novo Nordisk misrepresented and
concealed the true extent of the pricing pressures it was experiencing from
pharmacy benefit managers.
The pension plan purchased 53,046 shares of Novo Nordisk at a cost of nearly
$3 million during the Class Period. Saxena White estimates that the plan
sustained an estimated loss of approximately $1.15 million, and believes that a
securities case against Novo Nordisk is strong and has meaningful prospects
for recovery.
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 Jonson moved to approve the City of Clearwater
Employees' Pension Plan as lead plaintiff in litigation against Novo
Nordisk A/S regarding investment losses to the Plan; retain Saxena
White, P.A. as legal counsel in this regard and authorize staff to
negotiate a retainer agreement with Saxena White, P.A. The motion
was duly seconded and carried unanimously.
Page 5
City of Clearwater
Pension Trustees
5. Adjourn
Attest
r
.City Clerk
City of Clearwater
Meeting Minutes
The meeting adjourned at 1:09 p.m.
Page 6
February 13, 2017
Chair
Employees' Pension Plan Trustees