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07/10/1997 PENSION ADVISORY COMMITTEE CITY OF CLEARWATER July 10, 1997 Present: Rita Garvey Chair/Mayor J. B. Johnson Vice Chair/Commissioner Robert Clark Committee Member/Commissioner Pat Greer Committee Member Pat Shepler Committee Member Dick Fitzgerald Committee Member John Scacca Committee Member John Carrassas Assistant City Attorney Michael Laursen Human Resources Director Patricia O. Sullivan Board Reporter The City Clerk swore in members Pat Greer and John Scacca. The Chair called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 - Approval of Minutes Member Clark moved to continue approval of the minutes of the regular meeting of June 12, 1997, until August 14, 1997. The motion was duly seconded and carried unanimously. ITEM #3 - Employees to be Heard - None. ITEM #4 - Action Items a.) Review and Action on Employee Requests for Years of Service Pension 1) Donald D. Reed - Police Officer, Police Department - hazardous duty provision 2) Robert S. Anderson - Police Officer, Police Department - hazardous duty provision 3) Frank Palombo - Police Captain, Police Department - hazardous duty provision In response to a concern regarding the accuracy of annuity options related to Frank Palombo’s retirement, Human Resources Director Mike Laursen will verify the calculations with Steve Metz, the City’s Actuary. Mr. Laursen said all calculations provided retiring personnel are based on estimates. If an error exists, Captain Palombo can reselect his option. Member Johnson moved to approve Years of Service Pensions for Donald D. Reed, Robert S. Anderson, and Frank Palombo. The motion was duly seconded and carried unanimously. b) Approval of New Hires as Pension Plan Members Human Resources Director Mike Laursen said he had reviewed all physician recommendations and reported all listed new hires meet Pension Plan criteria. Concern was expressed the City’s record of preexisting conditions is based on new hire reporting and medical observations during pre-employment physical examinations. Only Fire and Police personnel are provided thorough physicals. Mr. Laursen said job descriptions and classifications have been distributed to the clinic which handles pre-employment physicals. Updates are sent annually. To verify clinic personnel are knowledgeable regarding physical requirements for each job classification, Mr. Laursen will provide a copy of the job description in each pre-employment packet. Member Fitzgerald moved to accept the following employees into membership in the Pension Plan: Date of Pension Employment Elig. Date. Joanne Levy, Customer Svc. Rep. Finance Department 02/10/92 05/26/97 Jeffrey Kehrer, Equipment Operator I Parks & Recreation Dept 06/09/97 06/09/97 David Marshall, Police Recruit. Police Department 01/21/97 06/09/97 Jonathan Oludumila, Maint. Worker I Solid Waste Department 06/09/97 06/09/97 Randall Bulger, Police Recruit Police Department 06/09/97 06/09/97 Sergio Sierra, Police Recruit Police Department 06/09/97 06/09/97 William Meyer, Police Recruit Police Department 06/09/97 06/09/97 Clyde Renfroe, Police Recruit Police Department 06/09/97 06/09/97 Anthony Pearn, Police Recruit Police Department 06/09/97 06/09/97 William Hodgson, Police Recruit Police Department 06/09/97 06/09/97 Wendy Tolbert, Police Com. Operator Police Department 06/09/97 06/09/97 Michael Mitchell, Police Com. Operator Police Department 06/09/97 06/09/97 Stephanie Skyrme, Customer Svc. Rep Central Permitting Dept. 10/03/96 06/16/97 Tonya Bonds, Staff Assistant I Parks & Recreation Dept 12/18/96 06/09/97 The motion was duly seconded carried unanimously. ITEM #5 - Pending/New Business a) Discussion Re: Pension Physicals Mr. Laursen reported the Human Resources Department has proposed to transfer the cost for pre-employment physicals from the City to the Pension Plan. The City historically has paid this expense. He estimated physicals cost between $8,000 and $10,000 per year and suggested the charge to the Pension Plan could be pro-rated. It was noted the City makes up all Pension Plan shortfalls. It was stated the City also benefits from pre-employment physicals as employees who leave before 10 years are not vested in the Pension Plan. Newly hired unclassified employees do not qualify for Pension benefits and are not required to take pre-employment physicals. In response to a question, Mr. Laursen estimated physicals cost $21 for regular employees and $250 for fire and police staff. It was noted the PAC (Pension Advisory Committee) is responsible for protecting the fund. Mr. Laursen will report how other area Pension Plans fund the cost of physicals. It was recommended other implications be considered. Member Johnson moved to continue Item #5a to August 14, 1997. The motion was duly seconded and carried unanimously. b) Request of Patricia Renner for Death Benefits Re: Jeffrey A. Renner Mr. Laursen stated the Legal Department has not completed the order based on the June 12, 1997, denial of Patricia Renner’s request for an “in-the-line-of-duty death” pension benefit. The regular benefit will be awarded retroactive to the date of Jeffrey Renner’s death in August 1996. Member Greer moved to approve a regular death benefit pension for Patricia Renner regarding Jeffrey Renner and to authorize the Chair to sign the order based on the June 12, 1997, denial of Patricia Renner’s request for an “in-the-line-of-duty” pension benefit. The motion was duly seconded and carried unanimously. Mr. Laursen reported the Renners’ marriage certificate and Mr. Renner’s death certificate are in the file. He referred to his June 20, 1997, letter to Mrs. Renner explaining the City’s determination that she is entitled to a normal survivor benefit based on Mr. Renner’s years of service. There are no optional payment methods to the standard benefit. ITEM #6 - Director's Reports In reference to the Pension Plan’s last financial report, it was requested that liability expenses be identified under accounts payable. The Finance Director will be invited to review financial issues on August 14, 1997. Concern was expressed that the Pension Plan is explained clearly to new employees at orientation meetings. ITEM #7 - Adjournment The meeting adjourned at 9:46 a.m.