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12/14/2000PENSION ADVISORY COMMITTEE MEETING CITY OF CLEARWATER December 14, 2000 Present: Brian Aungst Chair/Mayor J. B. Johnson Vice Chair/Commissioner Pat Greer Committee Member Dick Fitzgerald Committee Member Ed Hart Committee Member/Commission – arrived 9:15 a.m. John Schmalzbauer Committee Member John Lee Committee Member Also Present: Paul O’Rourke Human Resources Administrator Lee Dehner Pension Advisory Committee Attorney Debbie Ford Human Resources Analyst Patricia O. Sullivan Board Reporter 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 Johnson moved to approve the minutes of the regular meeting of October 12, 2000, as amended, and the regular meeting of November 9, 2000, as recorded and submitted in written summation to each board member. 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. Tami Jo Swain – Police Officer, Police Department 2. William Sedrick, Jr. – Police Sergeant, Police Department 3. Willie Jeter – Solid Waste Worker, Solid Waste Department 4. Frank X. Bowler – Chief Communications Technician, General Support Services 5. Charles F. Castanza – Police Officer, Police Department 6. James H. Moore – Police Officer, Police Department 7. John H. Donaldson – Fire Lieutenant/Rescue Paramedic, Fire Department 8. Douglas E. Bunting – Fire Fighter/Driver Operator, Fire Department Member Lee moved to approve Years of Service Pensions for Tami Jo Swain, William Sedrick, Jr., Willie Jeter, Frank X. Bowler, Charles F. Castanza, James H. Moore, John H. Donaldson, and Douglas E. Bunting. The motion was duly seconded and carried unanimously. b) Review and Action on Employee Requests to Vest Pension 1. Jeffrey L. Patterson – Police Captain, Police Department Jeffrey L. Patterson has resigned his position after being employed by the City for more than 17 years. He will qualify to receive his reduced pension beginning November 1, 2003. Member Greer moved to approve the request by Jeffrey L. Patterson to vest his Pension. The motion was duly seconded and carried unanimously. c) Review and Action on Employee Request for Survivors Pension 1. Rosa Conn, Widow of James H. Conn, Solid Waste James H, Conn was employed by the City on August 28, 1072, and joined the Pension Plan on February 28, 1973. At the time of his death, on October 21, 2000, James H. Conn was a vested participant in the Pension Plan. Rosa K. Conn, his surviving spouse and beneficiary, has requested his death benefit. Member Greer moved to approve the request by Rosa Conn, Widow of James H. Conn, for a Survivor’s Pension. The motion was duly seconded and carried unanimously. d) Approval of New Hires as Pension Plan Members As of December 7, 2000, the City had 1683.24 FTEs out of 1795.9 budgeted positions. Lisa Turcotte originally was hired as part-time; status changed to full-time and pension eligible as of November 6, 2000. William Dillashaw originally was hired as temporary; status changed to permanent and pension eligible as of November 6, 2000. Candy Hansen originally was hired as part-time; status changed to full-time and pension eligible as of November 4, 2000. Member Fitzgerald moved to accept the following employees into membership in the Pension Plan: Date of Pension Employment Elig. Date Karmen Brant, Recreation Leader Parks & Recreation Dept. 11/06/00 11/06/00 Michael Pizzorusso, Police Comm. Oper. Police Department 11/06/00 11/06/00 Lisa Turcotte, Police Comm. Oper. Trnee Police Department 10/25/99 11/06/00 Mark Roberson, Aquatics Leader Parks & Recreation Dept. 10/23/00 10/23/00 Diane Angello, Administrative Analyst General Support Services 11/06/00 11/06/00 William Dillashaw, Tree Trimmer Public Works 02/28/00 11/06/00 Sharon Hofle, Police Comm. Oper. Trnee Police Department 11/06/00 11/06/00 James Potts, Traffic Technician Public Works 10/23/00 10/23/00 Michael Anderson, Courier Information Technology 11/06/00 11/06/00 Shizuka Wire, Senior Systems Analyst Information Technology 11/06/00 11/06/00 Candy Hansen, Customer Service Rep. Gas Department 09/27/00 11/04/00 Angela Creel, Police Recruit Police Department 11/06/00 11/06/00 Stephen Agathos, Maintenance Worker II General Support Services 11/20/00 11/20/00 Brian Murphree, Landscape Maint. Coord Parks & Recreation Dept. 11/20/00 11/20/00 James Jerkins, Gas Technician Gas Department 11/20/00 11/20/00 Lynne Pulizotto, Staff Assistant I Planning & Dev. Services 11/20/00 11/20/00 Rodgerick Scott, Solid Waste Worker Solid Waste 11/06/00 11/06/00 The motion was duly seconded and carried unanimously. ITEM #5 - Pending/New Business a) Police Chief and Deputy Police Chief Pension Issue In her May 30, 2000 letter to Human Resources Administrator Paul O’Rourke, Andra Dreyfus, representing Police Chief Sidney R. Klein, requested his inclusion in the City’s Pension Plan. In her May 30, 2000 letter to the City Attorney, Ms. Dreyfus stated PAC (Pension Advisory Committee) Attorney Scott Christiansen, of Christiansen & Dehner, already has taken a position opposing the Police Chief’s inclusion in the Supplementary Pension Plan. She said it appears that Mr. Christiansen and his firm have a conflict with respect to further representation of either Plan in connection with the Police Chief’s request. She requested the City seek other counsel in this matter. In her June 14, 2000 letter to Mr. O’Rourke, Ms. Dreyfus, representing Deputy Police Chief William O. Baird, requested his inclusion in the City’s Pension Plan, retroactive to his date of hire as Deputy Police Chief. In his October 5, 2000, letter to the Pension Fund Trustees related to requests by the Police Chief and Deputy Police Chief, Stephen H. Cypen, of Cypen & Cypen, Miami Beach, stated it is not necessary to determine if “unclassified” police officers, otherwise meeting the statutory definition of police officer, can be excluded from a pension plan for police officers. Mr. Cypen referenced Police Chief Klein’s Employment Letter Agreements dated December 5, 1980, November 10, 1992, October 1, 1994, and August 7, 1998 and an amendment dated September 30, 1997, and Deputy Police Chief Baird’s Employment Letter Agreements dated January 5, 1993 and January 22, 1998. He said all letter agreements evidence an intent and desire by the Police Chief and Deputy Police Chief not to accept provisions of Chapter 185, Florida Statutes, and of the City’s Pension Fund. He said each letter contains a detailed list of terms and conditions, including benefits to be provided to the employee. In the case of the Police Chief, Mr. Cypen stated all agreements subsequent to December 5, 1980 specifically provide that the employee is not covered by the City Pension Plan. He opined neither Police Chief Klein nor Deputy Police Chief Baird is entitled to be included in the City’s Pension Fund. Mr. O’Rourke requested this item be continued. He stated Mr. Cypen is ill and unable to attend today’s meeting. He referred to Ms. Dreyfus’ request for PAC Attorney Lee Dehner, of Christiansen & Dehner, to recuse himself, making it necessary for the PAC to rely on Mr. Cypen’s representation. In response to a request, Mr. O’Rourke will distribute copies of the subject Letters of Agreement. He said a handwritten notation on Deputy Police Chief Baird’s Letter Agreement, dated January 5, 1993, indicated the document was revised on October 1, 1994. However, there is no copy of that document. Ms. Dreyfus opposed the continuance of this item, stating the delay is unnecessary as she does not plan to debate Mr. Cypen, who opposes the requests. Mr. O’Rourke stated Mr. Cypen can attend the January 11, 2001 PAC meeting. Mr. Dehner suggested PAC members may have questions for Mr. Cypen. A special meeting of the Pension Trustees could be scheduled afterward. In response to a question, Ms. Dreyfus said the Police Chief had applied to the Supplemental Pension Plan early in his career. He was told he qualified for the plan. And later told he did not. Mr. O’Rourke deferred questions related to the Police Chief’s current 401A retirement fund to the City Attorney. Ms. Dreyfus said if the Police Chief prevails, he will buy back his time. Member Greer moved to continue Item #5a to January 11, 2001. The motion was duly seconded and carried unanimously. b) Leonard Marotta – Request to Buy Back Pension Service Time On August 26, 1979, the City employed Leonard Marotta as a Police Officer. Upon his resignation on August 26, 1982, he withdrew his $3,890.97 pension contribution. Under the appropriate Civil Service Rule, Mr. Marotta requested to withdraw his resignation. Although the request occurred 19 days beyond the 6-month deadline, the City Manager approved the withdrawal of resignation. Upon his return to work as a Police Officer on April 25, 1983, Mr. Marotta’s seniority date was adjusted by 241 days, the number of days he was gone, following the procedure for employees who withdraw resignations. He also was credited all benefits, including sick leave and vacation. The Police Chief advised him his request to pay back his withdrawn Plan funds was denied. In 1996, the City advised Mr. Marotta he could buy back his pension service at an actuarial amount greater than $65,000. On March 11, 1999, the PAC recommended approval of a pension credit buy back for Leonard Marotta, based on the return of his withdrawn funds plus 5% interest per annum to the Pension Fund. On April 8, 1999, in another case, the PAC recommended approval of reestablishing David Kreiger’s Pension Plan credit with repayment of his withdrawn funds plus 5% interest. These matters were forwarded to the Pension Trustees for consideration. On June 1, 1999, the Pension Trustees approved both buy backs but rescinded their approval on June 7, 1999. Mr. O'Rourke stated based on court action, Mr. Krieger was allowed to reestablish his Pension Plan credit with repayment of his withdrawn funds plus 5% interest. Mr. Marotta, who did not litigate the rescission of his buyback, has requested reconsideration of his request to buy back his pension credit for less than the actuarial amount. Ms. Dreyfus, representative, stated the court had determined the Pension Trustees had established a contract with Mr. Krieger when they approved his buy back. She said the circumstances for Mr. Marotta are similar. Mr. Dehner recommended approval of the request. Member Schmalzbauer moved to recommend approval of a pension credit buy back for Leonard Marotta based on the return of his withdrawn funds plus 5% interest per annum to the Pension Fund. The motion was duly seconded. Members Johnson, Greer, Fitzgerald, Schmalzbauer, Lee, and Chair Aungst voted "Aye"; Member Hart voted "Nay." Motion carried. c) Neil Arfmann – Schedule Hearing on Request for Job-connected Disability Pension Member Johnson moved for the PAC to hear Neil Arfmann’s request for a job-connected disability pension on January 11, 2001. The motion was duly seconded and carried unanimously. ITEM #6 - Director's Reports Mr. Dehner said due to Ms. Greer's pending retirement, a new election must be scheduled. He will render an opinion on adjusting the terms and then coordinate the elections. Mr. Dehner reported new legislation related to member's financial disclosures goes into effect on January 1, 2001. Current trustees are required to file annual financial disclosures on July 1. New Trustees are required to file financial disclosures within 30 days of taking a seat. When their terms have expired or upon resignation, members are required to file a financial disclosure for the time they served on the committee between January 1 and the date they step down. This final disclosure is due within 60 days of stepping down. It was requested related forms be forwarded to members as soon as possible. ITEM #7 - Committee Members to be Heard Member Greer expressed concern employees, who worked full-time while classified as part-time, have been unable to buy back their pension credit, as approved in October, because the minutes from the related meeting had not yet been approved. She felt it was unfair that interest on these buy backs continues to escalate in the meantime. Happy Holidays! ITEM #8 - Adjournment The meeting adjourned at 9:35 a.m.