ATLANTIC BEACH | Momentum is building in support of a state investigation of the Jacksonville Police and Fire Pension Fund.
Atlantic Beach city commissioners voted 3-0 — with one recusing himself and another absent — to approve a resolution Monday asking Gov. Rick Scott to order an investigation by the Florida Department of Law Enforcement or the state inspector general’s office.
The action is the first time a government body has supported state Rep. Janet Adkins’ call for the investigation. In a Dec. 10 letter, Adkins asked Scott for the investigation, and cited a series of articles in the Florida Times-Union.
Commissioner Jimmy Hill recused himself, saying as a retired firefighter he is a participant in the pension fund. He receives a pension fund as a result of his 28 years of service. Hill said he wouldn’t vote on it because he didn’t want to risk any potential conflict of interest or the perception of a conflict of interest.
“Even though the attorney said that it’s probably OK that I vote on it because it doesn’t have an effect, I would like to recuse myself from the vote just because I feel it potentially would be perceived [as a conflict of interest],” he said.
City Attorney Rich Komando told commissioners whether Hill voted was his personal decision.
“I didn’t want to vote on something that one day ends up being a conflict. … It just feels like I shouldn’t be voting on it because it directly affects me,” Hill said.
Hill also told the commission that the firefighter union representative told him that it supports an investigation.
Commissioner Jonathan Daugherty was absent for the vote, but arrived later at the commission meeting.
Voting to approve the resolution without comment were Mayor Carolyn Woods, Mayor Pro Tem Mark Beckenbach and Commissioner Maria Mark.
Meanwhile, the Jacksonville City Council will consider its own resolution calling for a state investigation.
The legislation filed by Councilman John Crescimbeni will be introduced at Tuesday’s meeting of council.
“I would hope the City Council would pass that,” Crescimbeni said Monday. “I think there’s been enough controversy and questions swirling about with regard to the management and the fiscal expenditures of the Police and Fire Pension Fund that my colleagues would support Rep. Adkins and a review of the fund.”
Council President Clay Yarborough is a co-sponsor on the legislation, which will go through the council’s committee process before coming up for a full council vote.
If approved, the resolution would be sent to Scott, leaders of the state House and Senate, and the Duval County Legislative Delegation.
The issues raises by the resolution are similar to the message crafted by Atlantic Beach and Adkins’ letter.
Atlantic Beach doesn’t pay anything directly to the Police and Fire Pension Fund, which is an independent agency of the city of Jacksonville. However, Atlantic Beach contracts with the city of Jacksonville for firefighting service.
The Atlantic Beach resolution asks the state to investigate three areas.
■ Determine whether the Police and Fire Pension Fund followed state laws and rules when it created a multimillion-dollar pension plan for senior staff members at the pension fund.
■ Examine whether the pension fund followed state laws and rules in determining the eligibility of police and firefighters entering the Deferred Retirement Option Program.
■ Research the historical facts leading to the pension fund’s financial problems so lawmakers are able to “craft common sense solutions” that will “prevent any future occurrences.”
Mayor Woods told the Times-Union before the meeting that her constituents pay taxes to Jacksonville and Atlantic Beach so they have an interest in the pension fund being financially stable and sound. Equally important is ensuring the fund is managed properly, she has said.
Police and Fire Pension Fund Executive Director John Keane has said the fund doesn’t see any justification for a state investigation, but he doesn’t object to anyone asking for one.
The pension plan for senior staff members, which includes Keane and was created in 2000, has been a source of legal conflict.
In 2012, Cindy Laquidara, who was general counsel for Jacksonville at that time, said the pension fund’s board had no authority to create that pension plan. She demanded the pension fund close that pension plan and turn over all the money in it to the city.
The senior retirement plan currently holds about $4.3 million to pay pensions to one retiree, the survivor of another retiree, and pensions to Keane when he retires.
The pension fund’s lawyer countered in 2012 with a memo saying the Legislature empowered the board to set compensation for the fund’s employees, and a pension is a form of compensation.
The memo said the City Council’s authority to create pension plans only covers city employees, and the pension fund’s staff members are employees of the pension fund, not the city.
The issue regarding the Deferred Retirement Option Program, known as DROP, also involves conflicting interpretations by the pension fund’s staff versus the City Council Auditor’s Office and General Counsel’s Office.
Keane has said city ordinances regulate DROP, not state law.
In regard to Atlantic Beach requesting a historical review of the pension fund, Keane said a Jacksonville pension reform task force did that in a lengthy report by task force Chairman Bill Scheu.
Before Atlantic Beach commissioners voted on the resolution, it asked Jim Adams, legislative assistant to Adkins, to explain why she is requesting the investigation and the resolution she wants from it.
Adkins in her research of the pension fund issue has noted “concerns expressed by the media as well as by constituents in Atlantic Beach, Jacksonville Beach and the Nassau [County] area as well that there may have been some improper decisions in the way certain pension allocations have been made. That certain individuals may not have been entitled to a full pension,” said Adams, who didn’t identify those individuals.
“… We’re hoping that this is all clean and no problems are there, and the purpose is to really develop transparency in the process. And to allow the citizens, especially those receiving the pension, are receiving their benefits,” Adams said.
No one spoke in opposition to the council vote.
Teresa Stepzinski: (904) 359-4075
David Bauerlein: (904) 359-4581
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