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12/16/2019 Pension Trustees Meeting Minutes December 16, 2019 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 r Meeting Minutes Monday, December 16, 2019 9:00 AM Main Library - Council Chambers Pension Trustees Page 1 City of Clearwater Pension Trustees Meeting Minutes December 16, 2019 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 9:07 a.m. in Council Chambers at the Main Library. 2. Approval of Minutes 2.1 Approve the minutes of the October 14, 2019 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Hamilton moved to approve the minutes of the October 14, 2019 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 Christopher Clarke, Solid Waste Equipment Operator, Solid Waste 09/02/2019 Robert Ashmeade, Senior Staff Assistant, Public Utilities 09/03/2019 Jason Stransky, Public Utilities Technician I, Public Utilities 09/03/2019 Charles Satcher, Parks Streets&Sidewalks Tech. I, Parks&Rec 09/03/2019 Page 2 City of Clearwater Pension Trustees Meeting Minutes December 16, 2019 Logan Hinrichs, Gas Apprentice, Gas 09/16/2019 Robert Seay, Gas Apprentice, Gas 09/16/2019 Anthony Sylvester Jr., Gas Apprentice, Gas 09/16/2019 Ryan Poppler, Gas Apprentice, Gas 09/16/2019 Star White, Personnel Payroll Technician, Fire 09/16/2019 Alvin Bushnell, Fleet Mechanic, General Services 09/16/2019 Fred Coker, Parks Service Technician I, Parks& Recreation 09/16/2019 Ryan Odegaard, Code Enforcement Inspector, Planning &Development 09/16/2019 Angel Lopez, Utilities Mechanic, Public Utilities 09/16/2019 Jayson Wine, Solid Waste Worker, Solid Waste 09/28/2019 Sherrick Cuffie, Solid Waste Worker, Solid Waste 09/28/2019 Doreen Dreyer, Utility Dispatcher, Gas 09/30/2019 Jason Hauser, Code Enforcement Inspector, Planning &Development 09/30/2019 Coreen Tupponce, Police Telecommunication Trainee, Police 09/30/2019 Adon Chavis, Police Telecommunication Trainee, Police 09/30/2019 Lauren Copley, Police Telecommunication Trainee, Police 09/30/2019 Ryan Kenna, Police Officer, Police 09/30/2019 Carissa Costello, Police Officer, Police 09/30/2019 Nicholas Milillo, Police Officer, Police 09/30/2019 Roxanna Padilla Garibay, Police Officer, Police 09/30/2019 Antonio Knox, Recreation Leader, Parks& Recreation 09/30/2019 Natalie Weppler, Recreation Leader, Parks&Recreation 09/30/2019 Chyna Miller-Robinson, Recreation Leader, Parks&Recreation 10/12/2019 Chandler Dobler, Fire Medic, Fire 10/14/2019 Cullen Ahearn, Fire Medic, Fire 10/14/2019 Christopher Collins, Fire Medic, Fire 10/14/2019 Michael Donovan, Fire Medic, Fire 10/14/2019 Mason St. Martin, Fire Medic, Fire 10/14/2019 Stephanie Nuszkowski, Fire Medic, Fire 10/14/2019 James Desaulniers, Fire Medic, Fire 10/14/2019 Kaitlin Homme, Fire Medic, Fire 10/14/2019 Eric Heisler, Fire Medic, Fire 10/14/2019 Joal Levendoski, Fire Medic, Fire 10/14/2019 Mark Williams, Fleet Mechanic, General Services 10/14/2019 Joshua McKillen, Parks Service Technician, Parks&Recreation 10/14/2019 Christen Moon, Parks Service Technician, Parks&Recreation 10/14/2019 Stephanie Scalos, Economic Dev. Coordinator, Econ. Dev. &Housing 10/14/2019 Charles Erwin, Wastewater Treatment Plant Operator, Public Utilities 10/28/2019 Steven Philyaw, Utilities Mechanic, Public Utilities 10/28/2019 Mark Suva, Utilities Mechanic, Public Utilities 10/28/2019 Kacey Nguyen, Senior Systems Programmer, Information Technology 10/28/2019 Dyone Davis, Solid Waste Worker, Solid Waste 10/28/2019 Jariel Candelario, Jr., Solid Waste Worker, Solid Waste 10/28/2019 Page 3 City of Clearwater Pension Trustees Meeting Minutes December 16, 2019 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 employees Dominick Briganti, Fire Department and Lynne Priester, Customer Service Department, to vest their pensions as provided by Section 2.419 of the Employees' Pension Plan. Dominick Briganti, Fire Lieutenant, Fire Department, was employed by the City on October 12, 2009 and began participating in the Pension Plan on that date. Mr. Briganti terminated from City employment on October 15, 2019. Lynne Priester, Accounts Program Coordinator, Customer Service Department, was employed by the City on December 11, 1995 and began participating in the Pension Plan on that date. Ms. Priester terminated from City employment on September 14, 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, 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. Priester will meet the non-hazardous duty criteria and begin collecting a pension in December 2023. 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. Briganti will meet the Page 4 City of Clearwater Pension Trustees Meeting Minutes December 16, 2019 hazardous duty criteria and begin collecting pension in November 2025. Trustee Hamilton moved to approve the following request of employees Dominick Briganti, Fire Department and Lynne Priester, Customer Service 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 Kimberly DuPont, Economic Development and Housing Department, Matthew Dupree, Police Department, Willie Jones, Park and Recreation Department, Susan Marx, Gas Department and Kathleen Perry, Police Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees' Pension Plan. Kimberly DuPont, Senior Housing Coordinator, Economic Development and Housing Department, was employed by the City on October 27, 1997, and her pension service credit is effective on that date. Her pension will be effective January 1, 2020. Based on an average salary of approximately $49,568.55 over the past five years, the formula for computing regular pensions and Ms. DuPont's selection of the Life Annuity, this pension benefit will be approximately $30,193.44 annually. Matthew Dupree, Police Officer, Police Department, was employed by the City on September 27, 1999, and his pension service credit is effective on that date. His pension will be effective October 1, 2019. Based on an average salary of approximately $92,409.23 over the past five years, the formula for computing regular pensions and Mr. Dupree's selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $50,146.80 annually. Willie Jones, Senior Parks Service Tech, Park and Recreation Department, was employed by the City on September 15, 1998, and his pension service credit is effective on July 3, 1999. His pension will be effective November 1, 2019. Based on an average salary of approximately $33,122.40 over the past five years, the formula for computing regular pensions and Mr. Jones' selection of the Life Annuity, this pension benefit will be approximately $18,485.52 annually. Susan Marx, Customer Service Representative, Gas Department, was employed by the City on September 2, 1986, and her pension service credit is effective on that date. Her pension will be effective December 1, 2019. Based on an average salary of approximately $41,405.06 over the past five years, the formula for computing regular pensions and Ms. Marx's selection of the 10 Year Certain and Life Annuity, this pension benefit will be approximately $36,827.52 annually. Page 5 City of Clearwater Pension Trustees Meeting Minutes December 16, 2019 Kathleen Perry, Senior Crime Analyst, Police Department, was employed by the City on May 21, 1990, and her pension service credit is effective on that date. Her pension will be effective December 1, 2019. Based on an average salary of approximately $56,621.50 over the past five years, the formula for computing regular pensions and Ms. Perry's selection of the Life Annuity, this pension benefit will be approximately $45,882.24 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. DuPont, Mr. Jones, Ms. Marx, Ms. Perry 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. Dupree has met the hazardous duty criteria. Trustee Allbritton moved to approve the following request of employees Kimberly DuPont, Economic Development and Housing Department, Matthew Dupree, Police Department, Willie Jones, Park and Recreation Department, Susan Marx, Gas Department and Kathleen Perry, 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 Approve changes to the City of Clearwater Employees' Pension Fund "Statement of Investment Objectives and Guidelines" (Investment Policy) to expand and emphasize the Roles and Responsibilities section, to clarify responsibilities of the Trustees and Investment Committee regarding unauthorized investments, to modify performance measurement criteria for alternative investments, and other minor changes as recommended by the Plan's Investment Committee. The Pension Plan's investment policy was last revised in June of 2016. The Page 6 City of Clearwater Pension Trustees Meeting Minutes December 16, 2019 policy was recently reviewed by the Plan's investment consultant, CapTrust Advisors; the Plan's pension attorney, Klausner, Kaufman, Jensen & Levinson; and the Plan's Investment Committee for necessary revisions as proposed. Recommended revisions to the policy include: • The "Roles and Responsibilities" section was moved from the back of the policy to the front. • The "Responsibilities of the Pension Investment Committee" section was expanded and a new"Responsibilities of the Investment Consultant" section was added. • Minor changes were made to "Unauthorized Investments" section to clarify responsibilities of the Pension Trustees versus the Investment Committee. • A reference to 7% expected rate of return was modified to the "actuarial investment return rate assumption" • Aggregate, Bond, and Real Estate Index references were updated as necessary. • New language was added for performance measurement of alternative investments, to recognize non-traditional characteristics of alternative investments In response to questions, Finance Director Jay Ravins said the 7% assumed rate of return was hard-coded into policy. The recent policy change allows flexibility to amend the rate of return without requiring a policy amendment. He said the rate of return is being lowered to 6.5%. The change does not impact the pension fund but will impact the actuarial study with the required contribution the City provides. Per the most recent actuarial assumption, the Pension Plan was 104% funded. Mr. Ravins said as the rate of return is lowered, it is expected that the Plan may dip a little below 100%, which is dependent upon the investment market. Trustee Polglaze moved to approve changes to the City of Clearwater Employees' Pension Fund "Statement of Investment Objectives and Guidelines" (Investment Policy) to expand and emphasize the Roles and Responsibilities section, to clarify responsibilities of the Trustees and Investment Committee regarding unauthorized investments, to modify performance measurement criteria for alternative investments, and other minor changes as recommended by the Plan's Investment Committee. The motion was duly seconded and carried unanimously. Page 7 City of Clearwater Pension Trustees 5. Director's Report — None. 6. Adjourn Attest )_,Ci..J,t.-/I/va 2>✓ City Clerk City of Clearwater Meeting Minutes December 16, 2019 The meeting adjourned at 9:14 a.m. Chair Employees' Pension Plan Trustees Page 8