09/13/2001PENSION ADVISORY COMMITTEE MEETING
CITY OF CLEARWATER
September 13, 2001
Present: Dick Fitzgerald Chair
Whitney Gray Vice Chair /Commissioner
John Lee Committee Member
Ed Hart Committee Member/Commissioner
John Schmalzbauer Committee Member
Bill Jonson Committee Member/Commissioner
Tom Jensen 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 Schmalzbauer moved to approve the minutes of the regular meeting of August 9, 2001, as corrected by staff. The motion was duly seconded and carried unanimously.
ITEM #4 - Employees to be Heard - None.
ITEM #5 - Action Items
a) Review and Action on Employee Requests for Years of Service Pension
1. Linda L. Lange – Library Division Manager, Library
2. Deloris Butler-Moody – Custodial Worker, Parks & Recreation Department
3. Janis Przywara – Administrative Support Manager, Legal Department
4. James V. Maglio – Solid Waste Assistant Director, Solid Waste
Member Jensen moved to approve a Years of Service Pension for Linda L. Lange, Deloris Butler-Moody, Janis Przywara, and James V. Maglio. The motion was duly seconded and carried unanimously.
b) Approval of New Hires as Pension Plan Members
As of September 6, 2001, the City had 1706.11 FTEs out of 1801.3 budgeted positions. Seth Eigenmann originally was hired as part-time; transferred to full-time and pension eligible
as of June 4, 2001.
Member Jonson moved to accept the following employees into membership in the Pension Plan:
Date of Pension Employment Elig. Date
Scott O’Hare, Police Recruit Police Department 07/16/01 07/16/01
Patrick Pothier, Tree Trimmer Public Services 07/30/01 07/30/01
Darrell Goodin, Tree Trimmer Public Services 07/30/01 07/30/01
Richard Kephart, Senior Planner Planning & Develop Svcs 07/31/01 07/31/01
Brian Matherly, Parks Service Tech I Parks & Recreation 07/30/01 07/30/01
Modesto Gonzalez, Field Service Rep. Customer Service 07/30/01 07/30/01
Seth Eigenmann, Courier Information Technology 12/02/00 06/04/01
Debra Davis, Senior Payroll Technician Finance 08/13/01 08/13/01
Douglas Alvarez, Public Utilities Tech I Public Utilities 08/13/01 08/13/01
David Kessinger, Asst Chief - Production Fire Department 07/30/01 07/30/01
John Schroeder, Pol Commun Oper Trnee Police Department 08/13/01 08/13/01
Frederick Hemerick, Field Service Rep. Customer Service 08/27/01 08/27/01
The motion was duly seconded and carried unanimously.
ITEM #5 - Pending/New Business
a) Catherine Slack – Set Hearing Date for Job-Connected Disability Pension
Pension Advisory Committee Attorney Lee Dehner said he had contacted Catherine Slack’s attorney regarding the scheduling of this hearing on October 11, 2001. He recommended the committee
have no substantive discussion regarding this issue before that date. Copies of related medical records and results of a functional capacity test and IME (Independent Medical Exam)
were distributed. A copy of a job description related to Ms. Slack’s current duties was requested. Mr. O’Rourke stated no such job description exists as reasonable accommodations have
been provided for Ms. Slack to perform required tasks. The Chief of Police will report if the Police Department can accommodate Ms. Slack’s limitations long term. Concern was expressed
a doctor’s letter included incorrect information regarding Ms. Slack’s current position and should be corrected. It was stated submitted documents will be corrected at the October
11, 2001, hearing. Mr. Dehner said the committee also will decide at that time if additional information is needed.
Member Jonson moved to scheduled a hearing date for a job-connected disability pension for Catherine Slack before the Pension Advisory Committee on October 11, 2001. The motion was
duly seconded and carried unanimously.
b) Renewal of contract for Christiansen & Dehner
Mr. O’Rourke requested approval of a one-year renewal of the contract for legal services with Christiansen & Dehner to the Pension Committee and Pension Trustees. A rate increase from
$180 to $210 an hour was effective January 1, 2001. The contract includes no rate increase.
Member Lee moved to recommend approval of a one-year renewal of the legal contract for Christiansen & Dehner. The motion was duly seconded and carried unanimously.
ITEM #6 – Director’s Reports
Pension Plan Changes
Mr. O’Rourke said a draft has been prepared of proposed changes to the Pension Plan. Some changes streamline the documents, making them more consumer friendly. Several proposed changes
will be discussed during collective bargaining. Some changes are substantial and will impact the fund. All changes must be approved by referendum. Staff hopes to bring forward most
proposals by November for referendum consideration in March 2002. A special election at another time would cost approximately $50,000. Not all issues can be resolved in time for consideration
in March 2002. Staff recommendations will be presented to the PAC and Pension Trustees for discussion and approval.
Actuary Committee
The Chair reported the Actuary Committee had met on September 13, 2001, and reviewed three bids. Applicant interviews are scheduled for September 18, 2001. Financial Services Administrator
Margie Simmons stated one company is unable to attend the September 18, 2001, meeting. The date was noticed in the RFP (Request for Proposals).
The next PAC meeting is scheduled for October 11, 2001.
ITEM #7 - Committee Members to be Heard
Investment Committee
In response to a question, Mr. Dehner recommended Investment Committee minutes be filed with the City Clerk and distributed to the PAC and Pension Trustees.
Member Jensen recommended that Mr. Dehner attend quarterly Investment Committee meetings and special meetings as investment managers are discussed and legal considerations are addressed.
He said all members must be apprised when related problems have occurred. Concern was expressed regarding the number of special meetings. Ms. Simmons estimated legal representation
would cost $1,500 per meeting. She reviewed an investment manager’s error, stating the Pension Plan was not affected negatively.
Mr. Dehner said most investment committee membership is made up of pension trustee members. He participates in investment committee meetings for most pension plans he
represents to provide additional oversight and identify reporting problems. Mr. O’Rourke said sufficient funds are budgeted as only $21,000, of $50,000 budgeted for legal services during
the past year, has been expended.
Member Lee moved to recommend approval of Pension legal representation at all Investment Committee meetings. The motion was duly seconded.
It was recommended the PAC review this issue in six months to determine its benefit. It was felt more time would be needed to make that determination. It was estimated the annual
cost would be $5,400.
Upon the vote being taken Members Gray, Lee, Schmalzbauer, Jonson, Jensen and Chair Fitzgerald voted “Aye”; Member Hart voted “Nay.” Motion carried.
PAC Elections
Member Schmalzbauer said some retirees have indicated a desire to participate in PAC elections. Mr. O’Rourke said the Pension Plan draft of proposed revisions includes a recommendation
for retiree participation in PAC elections.
ITEM #8 - Adjournment
The meeting adjourned at 9:36 a.m.
_________________________________
Chair
Pension Advisory Committee
Attest:
________________________________________
Board Reporter