02/13/2017Monday, February 13, 2017
1:00 PM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Council Chambers
Pension Trustees
Meeting Agenda
February 13, 2017Pension Trustees Meeting Agenda
1. Call To Order
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.
3. Citizens to be Heard Regarding Items Not on the Agenda
4. New Business Items
4.1 Approve the new hires for acceptance into the Pension Plan as listed.
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.
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.
5. Adjourn
Page 2 City of Clearwater Printed on 2/9/2017
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#17-3232
Agenda Date: 2/13/2017 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Pension Trustees
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the minutes of the January 17, 2017 Pension Trustees Meeting as submitted in
written summation by the City Clerk.
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 2/9/2017
Pension Trustees Meeting Minutes January 17, 2017
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Meeting Minutes
Tuesday, January 17, 2017
9:00 AM
Council Chambers
Pension Trustees
Page 1 City of Clearwater Draft
Pension Trustees Meeting Minutes January 17, 2017
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.
Unapproved 1. Call To Order – Chair Cretekos
The meeting was called to order at 9:21 a.m. at City Hall. 2. Approval of Minutes
2.1 Approve the minutes of the December 12, 2016 Pension Trustees Meeting as
submitted in written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the December 12,
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
Daniel Ruben, Parks Service Tech I, Parks and Recreation 10/31/2016
Ernest Franks, Public Utilities Tech I, Public Utilities 11/14/2016
Page 2 City of Clearwater Draft
Pension Trustees Meeting Minutes January 17, 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 Jana Hofferle, Engineering Department
and Catalina Tefft, Finance Department, to vest their pensions as provided by Section
2.419 of the Employees’ Pension Plan.
Jana Hofferle, Parking Enforcement Supervisor, Engineering Department, was
employed by the City on August 19, 1996, and began participating in the
Pension Plan on that date. Ms. Hofferle terminated from city employment on
November 23, 2016.
Catalina H. Tefft, Procurement Analyst, Finance Department, was employed by
the City on March 21, 2005, and began participating in the Pension Plan on
that date. Ms. Tefft terminated from city employment on December 15, 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
David Vincent, Fleet Mechanic, General Services 11/14/2016
Ronald Testa, Building Inspection Technician, Planning and Dev. 11/14/2016
Page 3 City of Clearwater Draft
Pension Trustees Meeting Minutes January 17, 2017
participant has reached the age of sixty-five years and completed ten years of
credited service. Ms. Hofferle will meet the non-hazardous duty criteria and
begin collecting a pension in September 2026. Ms. Tefft will meet the
non-hazardous duty criteria and begin collecting a pension in September 2026.
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 Jana Hofferle, Engineering Department and Catalina
Tefft, Finance 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 the following request of employee Kathleen LaTerza, Parks and Recreation
Department for a regular pension as provided by Sections 2.416 and 2.424 of the
Employees’ Pension Plan.
Kathleen LaTerza, Recreation Program Coordinator, Parks and Recreation
Department, was employed by the City on December 1, 1986, and her pension
service credit is effective on that date. Her pension will be effective January 1,
2017.
Based on an average salary of approximately $70,218.79 over the past five
years, the formula for computing regular pensions and Ms. LaTerza’s selection
of the Life Annuity, this pension benefit will be approximately $58,075.32
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. LaTerza has met the non-hazardous duty criteria.
Section 2.416 provides for normal retirement eligibility for hazardous duty
Page 4 City of Clearwater Draft
Pension Trustees Meeting Minutes January 17, 2017
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 Hamilton moved to approve the following request of
employee Kathleen LaTerza, Parks and Recreation 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 revised pension plan expenditures for fiscal year 2017, increasing the
previously approved $338,900 by $5,000 for actuarial consulting services and $2,000
for pension benefits calculator software license, for a revised total of $345,900.
The Trustees previously approved fiscal year 2017 pension plan routine
administration expenditures of $338,900. This item is requesting approval of a
revised total due to the addition of actuarial consulting services ($5,000) and
annual licensing for the pension benefits software ($2,000).
The previous actuarial services agreement and related purchase order
included, in addition to fees for the annual actuarial valuations, estimated
actuarial consulting services and the software license in a total not-to-exceed
amount approved by the Trustees. The new agreement not-to-exceed amount,
approved by the Trustees in December, includes the fees for annual actuarial
valuations/reporting only. We are consequently requesting approval of a
$5,000 contingency for hourly actuarial consulting services and $2,000 for the
Gabriel Roeder Smith (GRS) pension benefit calculator software license during
fiscal year 2017.
The hourly consulting services and the software license, while provided by
Gabriel Roeder Smith, are separate services from the annual actuarial
valuations that we feel should be disclosed and approved annually by the
Trustees.
APPROPRIATION CODE AND AMOUNT:
0646-xxxxx-5xxxxx (various pension plan expenditure codes)
In response to questions, Finance Director Jay Ravins said expenditures
include the pension attorney fees, which are used on an as needed
basis and not through an annual contractual amount. The item before
the Trustees does not include the actuarial contract that was approved
in December.
Page 5 City of Clearwater Draft
Pension Trustees Meeting Minutes January 17, 2017
Trustee Jonson moved to approve revised pension plan
expenditures for fiscal year 2017, increasing the previously
approved $338,900 by $5,000 for actuarial consulting services and
$2,000 for pension benefits calculator software license, for a
revised total of $345,900. The motion was duly seconded and
carried unanimously.
5. Adjourn
The meeting adjourned at 9:26 p.m.
Chair Employees’ Pension Plan Trustees
Attest
City Clerk
Page 6 City of Clearwater Draft
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#17-3141
Agenda Date: 2/13/2017 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.1
SUBJECT/RECOMMENDATION:
Approve the new hires for acceptance into the Pension Plan as listed.
SUMMARY:
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
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 1 City of Clearwater Printed on 2/9/2017
Interoffice Correspondence Sheet TO: Pension Advisory Committee
FROM: Joseph Roseto, Human Resources Director SUBJECT: Recommendation for Acceptance into Pension Plan
DATE: Subject/Recommendation: Recommend approval of 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 Recreation 12/12/2016
Zaeinulabddin Adam Senior Planner Planning and Development 12/12/2016
Daniel Rowland Electro-Mechanical Tech Public Utilities 12/12/2016
Ila Petrov Utilities Chemist Public Utilities 12/12/2016
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#17-3142
Agenda Date: 2/13/2017 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.2
SUBJECT/RECOMMENDATION:
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.
SUMMARY:
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 twenty years of credited service; the date on which a
Page 1 City of Clearwater Printed on 2/9/2017
File Number: ID#17-3142
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.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 2 City of Clearwater Printed on 2/9/2017
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#17-3220
Agenda Date: 2/13/2017 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.3
SUBJECT/RECOMMENDATION:
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.
SUMMARY:
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 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
Page 1 City of Clearwater Printed on 2/9/2017
File Number: ID#17-3220
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.
Page 2 City of Clearwater Printed on 2/9/2017