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09/17/2018 Pension Trustees Meeting Minutes September 17, 2018 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 m ap ® e Meeting Minutes Monday, September 17, 2018 1 :00 PM Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes September 17, 2018 Roll Call Present 4 - Chair George N. Cretekos, Trustee Doreen Caudell, Trustee Bob Cundiff, and Trustee David Allbritton Absent 1 - Trustee Hoyt Hamilton Also Present—William B. Horne — 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 1:02 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the August 13, 2018 Pension Trustees Meeting as submitted in written summation by the City Clerk. Trustee Caudell moved to approve the minutes of the August 13, 2018 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. Pension Name/Job Classification/Department Eligibility Date Jenelle Ostrowski, Senior Professional Engineer, Engineering 07/09/2018 Kelly Gumto, Accounting Technician, Parks and Recreation 07/09/2018 Eustace Trocard, Heavy Equipment Operator, Parks and Recreation 07/09/2018 Page 2 City of Clearwater Pension Trustees Meeting Minutes September 17, 2018 Deandre Lane, Parks Service Technician I, Parks and Recreation 07/09/2018 Marcus Boykins, Solid Waste Equipment Operator, Solid Waste 07/09/2018 Michael Finocchio, Wastewater Treatment Plant Operator C, Public Utilities 07/09/2018 Michael Buis, Police Officer, Police 07/23/2018 Brittany Camera, Police Officer, Police 07/23/2018 Paul Gonzales, Police Officer, Police 07/23/2018 Jared Karpiscak, Police Officer, Police 07/23/2018 Michael Omer, Police Officer, Police 07/23/2018 Nicholas Paloma, Police Officer, Police 07/23/2018 Mikul Robinson, Police Officer, Police 07/23/2018 Scott Yeates, Police Officer, Police 07/23/2018 Nancy Gardner, Staff Assistant, Planning and Development 07/23/2018 Todd West, Building Construction Inspector, Planning and Development 07/23/2018 Nicholas Galante, Parking Enforcement Specialist, Engineering 07/23/2018 Julian McClaney, Parks Service Technician I, Parks and Recreation 07/23/2018 Peyton James, Solid Waste Equipment Operator, Solid Waste 07/23/2018 Trustee Cundiff 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 employee Shari Lepper, Economic Development and Housing Department to vest their pension as provided by Section 2.419 of the Employees' Pension Plan. Shari Lepper, Staff Assistant, Economic Development and Housing Page 3 City of Clearwater Pension Trustees Meeting Minutes September 17, 2018 Department, was employed by the City on June 16, 2003, and began participating in the Pension Plan on July 25, 2005. Ms. Lepper terminated from City employment on July 14, 2018. 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. Ms. Lepper will meet the non-hazardous duty criteria and begin collecting a pension in August 2025. 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 Allbritton moved to approve the following request of employee Shari Lepper, Economic Development and Housing Department to vest their 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 Holly Albright, Finance Department, Linda Galioto, Police Department, Jay Schmitt, Fire Department, Patricia Shields, Finance Department, Christopher Varnis, Solid Waste General Services Department, and Brenda Patrick, Gas Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Holly Albright, Accounting Technician, Finance Department, was employed by Page 4 City of Clearwater Pension Trustees Meeting Minutes September 17, 2018 the City on May 20, 1996, and her pension service credit is effective on that date. Her pension will be effective August 1, 2018. Based on an average salary of approximately $38,862.90 over the past five years, the formula for computing regular pensions and Ms. Albright's selection of the Life Annuity, this pension benefit will be approximately $23,693.16 annually. Linda Galioto, Police Service Technician, Police Department, was employed by the City on February 6, 1995, and her pension service credit is effective on April 27, 1998. Her pension will be effective September 1, 2018. Based on an average salary of approximately $44,893.60 over the past five years, the formula for computing regular pensions and Ms. Galioto's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $21,567.00 annually. Jay Schmitt, Fire Lieutenant, Fire Department, was employed by the City on May 18, 1992, and his pension service credit is effective on that date. His pension will be effective August 1, 2018. Based on an average salary of approximately $137,566.35 over the past five years, the formula for computing regular pensions and Mr. Schmitt's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $96,907.56 annually. Patricia Shields, Senior Payroll Technician, Finance Department, was employed by the City on April 17, 2006, and her pension service credit is effective on that date. Her pension will be effective September 1, 2018. Based on an average salary of approximately $35,613.72 over the past five years, the formula for computing regular pensions and Ms. Shield's selection of the Life Annuity, this pension benefit will be approximately $12,043.56 annually. Christopher Varnis, Building and Maintenance Foreman, Solid Waste General Services Department, was employed by the City on May 18, 2002, and his pension service credit is effective on that date. His pension will be effective September 1, 2018. Based on an average salary of approximately $40,617.35 over the past five years, the formula for computing regular pensions and Mr. Varnis' selection of the Life Annuity, this pension benefit will be approximately $18,191.16 annually. Brenda Patrick, Personnel Payroll Tech, Gas Department, was employed by the City on March 30, 1987, and her pension service credit is effective on that date. Her pension will be effective August 1, 2018. Based on an average salary of approximately $44,540.12 over the past five years, the formula for computing regular pensions and Ms. Patrick's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $35,361.36 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 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 Page 5 City of Clearwater Pension Trustees Meeting Minutes September 17, 2018 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. Albright, Ms. Galioto, Ms. Shields and Mr. Varnis 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. Schmitt has met the hazardous duty criteria. Trustee Caudell moved to approve the following request of employees Holly Albright, Finance Department, Linda Galioto, Police Department, Jay Schmitt, Fire Department, Patricia Shields, Finance Department, Christopher Varnis, Solid Waste General Services Department, and Brenda Patrick, Gas 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 pension plan expenditures for fiscal year 2019 totaling $351,600. The Employees' Pension Plan does not have a legally required budget however, all expenditures must be approved by the Trustees. The following are routine administrative expenditures that staff is requesting approval of for administrative efficiency. The recommended expenditures for fiscal year 2019 reflect a $13,100, or 3.9% increase over the approved fiscal 2018 expenditures, per attached. This increase is primarily due to increased reimbursements to the General Fund and Central Insurance Fund for Human Resources and Finance personnel administrative support totaling $6,500, or 4.4%; along with a $6,800, or 23.1%, increase in expected costs for employee physicals. Training and travel are the estimated costs of pension training and related travel, including fiduciary training for the Trustees and Pension Advisory Committee (PAC) members. This is a not-to-exceed amount given uncertainty regarding the number of Trustees and PAC members that may elect to pursue training. Page 6 City of Clearwater Pension Trustees Meeting Minutes September 17, 2018 Reimbursements to the General Fund and Central Insurance Fund are for the cost of oversight and administration of the Plan. The reimbursements are for services provided by Human Resources, Payroll, and Finance personnel, along with related operating expenditures. The firm of Klausner, Kaufman, Jensen and Levinson currently serves as the Plan's pension attorneys. Annual attorney fees also include medical bills for medical services authorized by the PAC, as well as attorney fees for disability cases and hearings. Money manager, performance measurement consulting, custodial/safekeeping, and actuary fees (other than actuary hourly consulting) are all governed by contracts separately approved by the Trustees and are not included in this agenda item total. APPROPRIATION CODE AND AMOUNT: 646-xxxx-5xxxxx (various pension plan expenditure codes) Trustee Cundiff moved to approve pension plan expenditures for fiscal year 2019 totaling $351,600. The motion was duly seconded and carried unanimously. 5. Director's Report — None. 6. Adjourn The meeting adjourned at 1:06 p.m. City of Clearwater qeO(vACrAtkf Chair Employees' Pension Plan Trustees Page 7