10/16/2017 Pension Trustees Meeting Minutes October 16, 2017
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
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Meeting Minutes
Monday, October 16, 2017
1 :00 PM
Council Chambers
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes October 16, 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, Micah Maxwell — Assistant City Manager, Pamela K.
Akin — City Attorney, Rosemarie Call — City Clerk, 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 1:20 p.m.
2. Approval of Minutes
2.1 Approve the minutes of the September 18, 2017 Pension Trustees Meeting as submitted
in written summation by the City Clerk.
Trustee Cundiff moved to approve the minutes of the September
18, 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
Eric Jewett, Code Enforcement Inspector, Planning and Development 08/07/2017
Marcus Bullock, Police Property Clerk, Police 08/07/2017
Reginald Jackson, Solid Waste Equipment Operator, Solid Waste 08/07/2017
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City of Clearwater
Pension Trustees Meeting Minutes October 16, 2017
Harlan Hamilton, Solid Waste Equipment Operator, Solid Waste 08/07/2017
Teresa Mitchell Grein, Service Dispatcher, Gas 08/14/2017
Miranda Wincek, Police Cadet, Police 08/21/2017
Brian Aden, Legal Staff Assistant, Legal 08/21/2017
Theodore Hordych, Traffic Signal Technician, Engineering 08/21/2017
Kristian Greve, Traffic Signal Technician, Engineering 08/21/2017
Terry Johnson,Water Distribution Operator Trainee, Public Utilities 08/21/2017
Taylor Thomason, Recreation Leader, Parks and Recreation 08/21/2017
Trustee Caudell moved to approve the new hires for acceptance
into the Pension Plan as listed. The motion was duly seconded
and carried unanimously.
Ayes: 5 - Chair Cretekos, Trustee Caudell, Trustee Cundiff, Trustee Hamilton
and Trustee Jonson
4.2 Approve the following request of employees Adam Jacques, Police Department and
Matthew Roach, Solid Waste General Services Department, to vest their pensions as
provided by Section 2.419 of the Employees' Pension Plan.
Adam Jacques, Police Officer, Police Department, was employed by the City on
January 8, 2007, and began participating in the Pension Plan on that date. Mr.
Jacques terminated from City employment on August 04, 2017.
Matthew Roach, Solid Waste Equipment Operator, Solid Waste General
Services Department, was employed by the City on March 11, 2002, and began
participating in the Pension Plan on that date. Mr. Roach terminated from City
employment on January 11, 2017.
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
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City of Clearwater
Pension Trustees Meeting Minutes October 16, 2017
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. Roach will meet the non-hazardous duty criteria and begin collecting a
pension in April 2022.
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. Jacques will meet the
hazardous duty criteria and begin collecting pension in February 2027.
Trustee Cundiff moved to approve the following request of
employees Adam Jacques, Police Department and Matthew
Roach, Solid Waste General Services 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 employees John Fahey, Planning and Development
Department, Stephen Finney, Gas Department, Cheryl Ford, Finance Department,
Donald Hall, Police Department, Jay Holsombach, Police Department, Michael Pryor,
Solid Waste General Services, Clyde Renfroe, Police Department and Brian Sweeney,
Library Department for a regular pension as provided by Sections 2.416 and 2.424 of the
Employees' Pension Plan.
John Fahey, Plan Examiner, Planning and Development Department, was
employed by the City on May 15, 2006, and his pension service credit is
effective on August 7, 2006. His pension will be effective October 1, 2017.
Based on an average salary of approximately $47,246.18 over the past five
years, the formula for computing regular pensions and Mr. Fahey's selection of
the Life Annuity, this pension benefit will be approximately $14,407.44 annually.
Stephen Finney, Gas Tech II, Gas Department, was employed by the City on
September 15, 1997, and his pension service credit is effective on that date.
His pension will be effective October 1, 2017. Based on an average salary of
approximately $37,756.77 over the past five years, the formula for computing
regular pensions and Mr. Finney's selection of the 66 2/3% Joint and Survivor
Annuity, this pension benefit will be approximately $19,187.88 annually.
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City of Clearwater
Pension Trustees Meeting Minutes October 16, 2017
Cheryl Ford, Accountant, Finance Department, was employed by the City on
November 28, 1994, and her pension service credit is effective on that date.
Her pension will be effective September 1, 2017. Based on an average salary of
approximately $45,769.41 over the past five years, the formula for computing
regular pensions and Ms. Ford's selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $25,329.00 annually.
Donald Hall, Police Deputy Chief, Police Department, was employed by the City
on May 21, 1984, and his pension service credit is effective on that date. His
pension will be effective October 1, 2017. Based on an average salary of
approximately $109,048.88 over the past five years, the formula for computing
regular pensions and Mr. Hall's selection of the 100% Joint and Survivor Annuity,
this pension benefit will be approximately $97,953.96 annually.
Jay Holsombach, Police Sergeant, Police Department, was employed by the
City on April 28, 1997, and his pension service credit is effective on that date.
His pension will be effective October 1, 2017. Based on an average salary of
approximately $105,287.08 over the past five years, the formula for computing
regular pensions and Mr. Holsombach's selection of the Life Annuity, this
pension benefit will be approximately $64,304.64 annually.
Michael Pryor, Solid Waste Program Coordinator, Solid Waste General
Services Department, was employed by the City on November 2, 1987, and his
pension service credit is effective on that date. His pension will be effective
December 1, 2017. Based on an average salary of approximately $65,532.73
over the past five years, the formula for computing regular pensions and Mr.
Pryor's selection of the 100% Joint and Survivor Annuity, this pension benefit will
be approximately $50,147.52 annually.
Clyde Renfroe, Police Officer, Police Department, was employed by the City on
June 9, 1997, and his pension service credit is effective on that date. His
pension will be effective September 1, 2017. Based on an average salary of
approximately $93,427.52 over the past five years, the formula for computing
regular pensions and Mr. Renfroe's selection of the 100% Joint and Survivor
Annuity, this pension benefit will be approximately $51,145.44 annually.
Brian Sweeney, Library Assistant, Library Department, was employed by the
City on December 23, 1996, and his pension service credit is effective on
September 15, 1997. His pension will be effective October 1, 2017. Based on
an average salary of approximately $32,770.44 over the past five years, the
formula for computing regular pensions and Mr. Sweeney's selection of the Life
Annuity, this pension benefit will be approximately $18,026.28 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
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City of Clearwater
Pension Trustees Meeting Minutes October 16, 2017
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. Fahey, Mr. Finney, Ms. Ford, Mr. Pryor and Mr. Sweeney 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. Hall, Mr. Holsombach
and Mr. Renfroe have met the hazardous duty criteria.
Trustee Hamilton moved to approve the following request of
employees John Fahey, Planning and Development Department,
Stephen Finney, Gas Department, Cheryl Ford, Finance
Department, Donald Hall, Police Department, Jay Holsombach,
Police Department, Michael Pryor, Solid Waste General Services,
Clyde Renfroe, Police Department and Brian Sweeney, Library
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 the termination of international emerging markets equity money manager Eaton
Vance and authorize the appropriate officials to execute same.
Eaton Vance was hired as an international emerging markets equity manager
for the plan in February 2008. As of June 30, 2017, the market value of the
plan's investment in Eaton Vance totaled $36.45 million, or 3.79% of the total
investment portfolio. Eaton Vance's performance has steadily declined in recent
years, as detailed below. The Pension Investment Committee unanimously
recommends termination at this time.
Percentile
As of 6/30/2017 Eaton Vance Rankinq Benchmark
Last 3 years (1.16)% 91 st 1.44%
Last 5 years 3.25% 95th 4.33%
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Pension Trustees Meeting Minutes October 16, 2017
Staff will be bringing a separate agenda item forward for the replacement of
Eaton Vance in the international emerging markets equity portfolio category.
Trustee Jonson moved to approve the termination of
international emerging markets equity money manager Eaton
Vance and authorize the appropriate officials to execute same.
The motion was duly seconded and carried unanimously.
4.5 Approve investment of up to $40,000,000 in the Dimensional Fund Advisors (DFA)
Emerging Markets Core Equity Portfolio mutual fund and authorize the appropriate
officials to execute same.
The plan's emerging markets international equity money manager has been
recommended for termination per a previous agenda item.
At the May 2017 pension investment committee quarterly meeting, the
committee requested the plan's investment performance consultant, CapTrust
Advisors, to conduct a manager search for a replacement emerging markets
equity manager. At a special meeting of the committee on June 19, 2017, the
committee unanimously selected DFA Emerging Markets Core Equity Portfolio
for a due diligence interview of the firm, which was subsequently conducted at
the committee's August 2017 quarterly meeting.
The pension investment committee unanimously recommends DFA Emerging
Markets Core Equity Portfolio mutual fund to the Trustees for an investment of
up to $40 million, or approximately 4% of the total plan investment portfolio.
As of July 31, 2017, DFA Emerging Markets Core Equity Portfolio's performance
over the past ten years has been as follow:
Performance Benchmark
Last 3 years 2.98% 2.39%
Last 5 years 5.69% 4.76%
Last 10 years 2.92% 1.98%
The DFA Emerging Markets Core Equity Portfolio mutual fund is only available
to institutional investors. It has a management fee of 0.47% and a net expense
ratio of 0.53% per the fund's February 2017 prospectus.
APPROPRIATION CODE AND AMOUNT:
0646-07410-530100-585-000-0000 $188,000 annually
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City of Clearwater
Pension Trustees
5. Adjourn
Attest
City Clerk
City of Clearwater
Meeting Minutes October 16, 2017
In response to questions, Accounting Manager Mary Beth Setter said the
performance is higher than the benchmark; during the last three years it has
been 2.98 %. The emerging market funds are volatile funds. Staff is trying to
find a manager who can provide a better percentile return than the market
and the index.
Trustee Cundiff moved to approve investment of up to
$40,000,000 in the Dimensional Fund Advisors (DFA) Emerging
Markets Core Equity Portfolio mutual fund, and authorize the
appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
The meeting adjourned at 1:27 p.m.
— Rwl\e /\C/c'-\'z-H05
Chair
Employees' Pension Plan Trustees
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