02/18/2020 Pension Trustees Meeting Minutes February 18, 2020
City of Clearwater
Main Library- Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
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Meeting Minutes
Tuesday, February 18, 2020
9:00 AM
Main Library - Council Chambers
Pension Trustees
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City of Clearwater
Pension Trustees Meeting Minutes February 18, 2020
Roll Call
Present 5 - Chair George N. Cretekos, Trustee Bob Cundiff, Trustee Hoyt
Hamilton, Trustee David Allbritton, and Trustee Jay Polglaze
Also Present—William B. Horne II — City Manager, Micah Maxwell — Assistant
City Manager, Michael Delk — Assistant City Manager, Pamela
K. Akin — City Attorney, Rosemarie Call — City Clerk, Nicole
Sprague — Official Records and Legislative Services
Coordinator and Jennifer Poirrier— 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 9:09 a.m. in Council Chambers at the
Main Library.
2. Approval of Minutes
2.1 Approve the December 16, 2019 Pension Trustees Meeting Minutes as submitted in
written summation by the City Clerk.
Trustee Allbritton moved to approve the December 16, 2019
Pension Trustees Meeting Minutes 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.
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Pension Trustees Meeting Minutes February 18, 2020
Name/Job Classification/Department Pension
Eligibility Date
Robert Farris, Senior Construction Inspector Engineering 11/12/2019
Amy Dickman, Utility Dispatcher, Gas 11/12/2019
Ali Ismailoski, Arborist, Parks&Recreation 11/12/2019
Robert Testa, Parks Service Technician, Parks&Recreation 11/12/2019
Suzan Hauser, Police Records Clerk, Police 11/12/2019
Jessica Hoskins, Police Records Clerk, Police 11/12/2019
Tracy Boone, Police Records Clerk, Police 11/12/2019
Alyssa Poole, Customer Service Rep, Gas 11/25/2019
Derek Smith Jr.. Lead Parks Service Technician, Parks& Recreation 11/25/2019
Ryan DeFonso, Customer Service Rep, Planning & Development 11/25/2019
David Ball, Utilities Electronics Technician, Public Utilities 11/25/2019
Deborah Boyer, Customer Service Representative, Utility Customer Service 12/09/2019
Jesse Rhoades, Lead Engineering Specialist, Engineering/Traffic 12/09/2019
Elise Heal, Human Resources Analyst, Human Resources 12/09/2019
Andrew Donelson, Utilities Mechanic, Public Utilities 12/09/2019
Jakob Blass, Police Cadet, Police 11/12/2019
Jonathon Roth, Survey Assistant, Engineering 12/16/2019
Brenda Fontane-Villamil, Sr Development Rev Tech, Planning and Development 12/09/2019
Trustee Polglaze 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 Jeremiah Mills, Fire Department, to vest their
pension as provided by Section 2.419 of the Employees' Pension Plan.
Jeremiah Mills, Fire Medic, Fire Department, was employed by the City on
February 28, 2006, and began participating in the Pension Plan on that date.
Mr. Mills terminated from City employment on November 4, 2019.
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,
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Pension Trustees Meeting Minutes February 18, 2020
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. Mills will meet the
hazardous duty criteria and begin collecting pension in March 2026.
Trustee Cundiff moved to approve the following request of
employee Jeremiah Mills, Fire 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 Michael Deegan, Gas Department, Matthew
McCombs, Solid Waste General Services and Karl Pople, Police Department, for a
regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension
Plan.
Michael Deegan, Gas Safety and Reg Comp Coordinator, Gas Department,
was employed by the City on January 2, 1985, and his pension service credit is
effective on that date. His pension will be effective February 1, 2020. Based on
an average salary of approximately $87,275.57 over the past five years, the
formula for computing regular pensions and Mr. Deegan's selection of the 75%
Joint and Survivor Annuity, this pension benefit will be approximately $83,935.32
annually.
Matthew McCombs, Fleet Mechanic, Solid Waste General Services
Department, was employed by the City on February 24, 2003, and his pension
service credit is effective on that date. His pension will be effective January 1,
2020. Based on an average salary of approximately $45,210.65 over the past
five years, the formula for computing regular pensions and Mr. McCombs'
selection of the 50% Joint and Survivor Annuity, this pension benefit will be
approximately $18,667.20 annually.
Karl Pople, Police Telecom municator, Police Department, was employed by the
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Pension Trustees Meeting Minutes February 18, 2020
City on January 16, 1991, and his pension service credit is effective on January
20, 1998. His pension will be effective February 1, 2020. Based on an average
salary of approximately $54,183.40 over the past five years, the formula for
computing regular pensions and Mr. Pople's selection of the 50% Joint and
Survivor Annuity, this pension benefit will be approximately $30,726.72 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.
Mr. Deegan, Mr. McCombs and Mr. Pople have met the non-hazardous duty
criteria.
Trustee Hamilton moved to approve the following request of
employees Michael Deegan, Gas Department, Matthew McCombs,
Solid Waste General Services and Karl Pople, 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 Ratify and confirm correction of error of underpayments for members where amounts
were calculated incorrectly by software.
In response to questions, Finance Director Jay Ravins said the $1,800
was for all 7 pensioners who were impacted by the miscalculation and
included interest. The software has been corrected.
Trustee Allbritton moved to ratify and confirm correction of error
of underpayments for members where amounts were calculated
incorrectly by software. The motion was duly seconded and
carried unanimously.
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Pension Trustees Meeting Minutes February 18, 2020
4.5 Approve the termination of mid cap value equity money manager Wedge Capital
Management and authorize the appropriate officials to execute same.
Wedge was hired as a mid cap value equity manager for the plan in January
2007. As of January 31, 2020, the market value of the plan's investment in
Wedge's mid cap value equity product totaled $39.25 million, or 3.50% of the
Plan's total investment portfolio. Wedge's performance has declined in recent
years, as detailed below. The Pension Investment Committee unanimously
recommends termination at this time.
Percentile
As of 9/30/2019 Systematic Ranking Benchmark
Last 3 years 6.46% 99th 7.82%
Last 5 years 6.59% 94th 7.55%
Last 10 years 12.57% 65th 12.29%
Staff will be bringing a separate agenda item forward for replacement of Wedge
in the mid cap value portfolio category.
In response to questions, Finance Director Jay Ravins said staff will be
bringing forth another mid cap manager. Staff tries to diversify the
investment portfolio to minimize while earning a reasonable return. The
Plan's current assumption rate is 6.5% on investment returns. Wedge
Capital has 3.5% of the plan's portfolio.
Trustee Cundiff moved to approve the termination of mid cap
value equity money manager Wedge Capital Management and
authorize the appropriate officials to execute same. The motion
was duly seconded and carried unanimously.
4.6 Approve an agreement with Boston Partners Global Investors, Inc (dba Boston Partners)
for investment in the Boston Partners Mid Cap Value Equity product and authorize the
appropriate officials to execute same.
One of the plan's mid cap value equity money managers, Wedge Capital
Management, has been recommended for termination per a previous agenda
item.
The City's investment consultant, CapTrust Advisors, conducted a manager
search for a replacement mid cap value equity manager. The pension
investment committee reviewed the search results at the November 22, 2019
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Pension Trustees
Meeting Minutes February 18, 2020
quarterly committee meeting and selected Boston Partners for
recommendation to the Pension Trustees.
The pension investment committee unanimously recommends Boston Partners
Mid Cap Value Equity to the Trustees for an initial investment of up to $45
million, or approximately 4.0% of the total plan investment portfolio.
As of December 31, 2019, Boston Partners' Mid Cap Value Equity performance
over the past ten years has been as follows:
(net of fees) Russell Midcap
Performance Value Index
Last 3 years 9.19% 8.10%
Last 5 years 9.11% 7.62%
Last 10 years 13.92% 12.41%
Investment manager fees will be 0.80% on the first $25 million; and 0.60%
thereafter.
The pension plan's attorney, Klausner, Kaufman, Jensen and Levinson, has
reviewed and approved the Investment Management Agreement for execution.
APPROPRIATION CODE AND AMOUNT:
6467410-530100 $380,000 annually
Trustee Hamilton moved to approve an agreement with Boston
Partners Global Investors, Inc (dba Boston Partners) for
investment in the Boston Partners Mid Cap Value Equity product
and authorize the appropriate officials to execute same. The
motion was duly seconded and carried unanimously.
5. Director's Report - None
6. Adjourn
The meeting adjourned at 9:16 a.m.
air
Attest Employees' Pension Plan Trustees
City of Clearwater
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Pension Trustees
Meeting Minutes February 18, 2020
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City of Clearwater