Ord No 15-11-2088ORDINANCE No. 15-11-2088
A Ordinance of the Mayor and the City Commission of the City of South Miami,
Florida amending the Pension Plan providing for an amendment of Sec 16 -37
Powers of Board; providing for severability, ordinances in conflict, and an
effective date.
WHEREAS, the current pension language is restrictive and outdated and,
WHEREAS, it is in the best interest to provide the Pension Board with the ability to consider
investments that are prudent and in tune with today's investing climate.
NOW, THEREFORE, IT BE ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA:
Section 1
That the forgoing whereas clauses are hereby ratified and confirmed as being true and correct
and hereby made a specific part of this ordinance upon adoption hereof.
Section 2
Section 16 -37 of the Code of Ordinances of the City of South Miami is hereby amended as
follows.
Powers of board.
The .•. • shall have the power
To invest and reinvest monies of the ftmd.
(a) in making s-1 they shall be s
P ...ePt 11-at Oble alle0a'e- of assets shall not be less tha
WAR W11V
ON
Ord. No, 15 -11 -2088
fr t"ivatcvTCavtiircvirrii t h b 1 ..t._,..t his in the „to
any eenfliet, the provisions of Chapter 185 of the
Statutes shall prevaih
(e) To authorize expenditefe in connection with preliminary r-eseareh, technical v
administration of the fiand and to empley legal eounsel and auditors necessary to the
proper ad"Histration of the fund-.
,
(f) The - boar
d-S�?a
in afty scrutinized eampaii3y, -- defined in F.S. § 215.4 73, and pfoeeed to sell, redeern,
divest, or withdr-aw all publiely traded seewities it may have in sueh eempany beginning
Jarmaryl, 610, and shall thereafter be prohibited from pufehasing-or��
-30,20 10.
securities. The divestiture of any such ^ �1�+�A 1'
.Y tember
in aeeordanee v4th Ch. 2009 97, Laws of Florida, no person may bring a" eivil, erimi
or administrative action against the board or any employee, officer, diree4or, or advisor of
sueh board based upon the divestiture of .11Y SeeWrity pursuant to this paragraph.
Fund management and investments.
(a ) The plan is hereby established pursuant to authority granted in Chapter 16 of the City
of South Miami Code of Ordinances as a trust fund into which shall be deposited all of the
assets of the plan of every kind and description.
(b) The actual custody and supervision of the fund shall be vested in the Board. All assets
of the plan may be commingled provided that accurate records are maintained at all times
reflecting the financial composition of the fund including accurate accounts regarding the
following:
(1) Current amounts of accumulated contributions of members, both on an individual and
aggregate basis;
(2 ) Receipts and disbursements;
(3) Benefits payments,
(4) All contributions from the City;
(5) All contributions from the State of Florida pursuant to Chapter 185;
(6) All interest dividends gains and losses from investment
(7) Such other entries as may be required for a clear, complete financial report of the status
of the Fund.
(c) The Board shall establish a written investment policy, with the advice and counsel of
such advisors as the Board deems necessary, and said investment policy shall set forth the
des of securities and other types of investments into which shall be placed the assets of
the fund The policy shall further set forth appropriate limitations on those investments,
Ord. No. 15 -11 -2088
including but not limited to anticipated rate of return quality of investment class of
investment and acceptable risk The Board shall have the authority to invest and reinvest
the assets of the plan in such securities or property, real or personal as the Board deems
qppropriate including but not limited to:
(1) Bonds notes or other obligations of the United States or any of its agencies, or those
guaranteed by the United States or for which the credit of the United States is pledged for
the payment of the rincipal and interest or dividends thereof;
(2) Accounts or certificates of deposit in any bank or other financial institution
incorporated under the laws of the State of Florida or any national bank organized under
the laws of the United States or authorized to do business and situated in the State of
Florida to the extent that such certificates of deposit are secured by the deposits of
securities of the United States government;
(3) Notes secured by first mortgages on real property insured or guaranteed by the Federal
Housing Administration or the Veterans Administration;
(4) Interest - bearing obligations with a fixed maturity f any corporation organized under
the laws of the United States any state or organized territory of the United States and the
District of Columbia; provided that such obligations are rated by at least two nationally
recognized ratings services in anyone of the four highest classifications approved by the
Comptroller of the Currency for the investment of funds of national banks or, if only one
nationally recognized ratings service shall rate such obligations such ratings service must
have rated such obligation in any one of the four highest rating classifications as set forth
in this subsection;
) Bonds issued by the State of Israel;
(6) Real estate which may be in the form of commingled ownership and financial
institutional futures listed options stock index futures which may be used under specific
instruction of managers;
(7) Common stock. preferred stock and interest-bearing obligations of domestic
corporations having an option to convert into common or preferred stock issued by a
corporation organized under the laws of the United States any State or organized territory
of the United States or any state or organized territory of the United States and the District
of Columbia.
(8) Index funds and collective investment funds.
(9) Foreign securities not to exceed 25 percent of the portfolio at market value.
Q0) Any other investment permitted by law•
(d) The Board may determine the percentage of each type of investment to be held.
Ord, No, 15 -11 -2088
(e) The Board shall be authorized to retain one of more money managers for the
management of property held in the plan and the Board shall convey property of the plan
to such money managers for investment and reinvestment in accordance with the terms of
this article and the investment policies established by the Board. Any such money manager
contracting with the Board for the investment of its assets shall be deemed a fiduciary of
the plan.
(f) The Board shall have a continuing duty to observe and evaluate the performance of any
money manager retained by the Board The Board shall in selecting a money manager or
other investment counsel exercise all judgment and care in the circumstances then
prevailing which persons of prudence discretion and intelligence exercise in the
management of their own affairs.
(g) The Board shall require that any money manager or other agent who has custody or
control of any property off the plan to keep accurate and detailed accounts of all
investments receipts disbursements and other transactions pertaining to such Trust
property, and the Board shall further require that all accounts books and records pertaining
thereto be open for inspecting and audit at all reasonable times by the City, the Board or
the designees.
(h) The Board shall also keep accurate and detailed accounts of all investments, receipts,
disbursements or other transactions pertaining to the Trust property and all accounts, books
and records pertaining thereto shall be open to inspection and audit at all reasonable times
by the City or its designees.
(i)The board shall identify and publicly report any direct or indirect holdings it may have
in any scrutinized company, as defined in F S. § 215.473 and proceed to sell, redeem,
divest or withdraw all publicly traded securities it may have in such company be
January 1 2010 and shall thereafter be prohibited from purchasing or holding such
securities The divestiture of any such security must be completed by September 30, 2010.
In accordance with Ch 2009 -97 Laws of Florida no person may bring any civil criminal
or administrative action against the board or any employee officer, director or advisor of
such board based upon the divestiture of any security pursuant to this paragraph
Other Powers
(a) To perform the acts required as the administrator of the plan. The board may delegate
administrative duties in its discretion.
(b)
To approve
disbursements
py claims
and
authorize
payments
from
the fund
by
warrants
signed
by the
chairman
and
the
secretary of
the
board.
(c ) To interpret the provisions of this article where the meaning is not clear or ambiguity
exists; and to promulgate necessary rules respecting the operation of the fund or elections
of trustees not in conflict with the wording or clear intent of this article. In the event of
any conflict the provisions of Chapter 185 of the Florida Statutes shall prevail.
Ord. No. 15 -11 -2088
(d) To authorize expenditure in connection with preliminary research technical services,
legal services and accounting services to contract for employees necessary to the general
administration of the fund and to employ legal counsel and auditors necessary to the
proper administration of the fund.
Section 3. This ordinance shall become effective at the expiration of ten days after adoption.
PASSED AND ADOPTED this 4th , day of April , 2011.
ATTEST:
q T L y CL-C —
I" Reading- 3/15/11
2 °d Reading-4/4/11
APPROVED:
Y0+
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Beasley:
Commissioner Palmer
Commissioner Harris:
4 -0
Yea
Yea
absent
Yea
Yea
April 1, 2011
Gabriel Roeder Smith LA Company One East Broward Blvd.
Consultants & Actuaries Suite 505
Ft. Lauderdale, FL 33301 -1804
Ms. Dixie Martinez
Pension Administrator
The Resource Centers, LLC
4360 Northlake Boulevard, Suite 206
Palm Beach Gardens, Florida 33410
Re: South Miami Pension Plan
Actuarial Impact Statement
Dear Dixie:
954.527.1616 phone
954.525.0083 fax
www.gabrielroeder.com
As requested by Javier Banos, Esq., we have performed an actuarial review of the attached
proposed Ordinance. We understand the proposed Ordinance is intended to apply to the
South Miami Pension Plan.
Based upon our review, the proposed Ordinance:
I. Provides the Board authority to select the types of securities and limitations on those
investments.
2. Clarifies the powers of the Board.
3. Provides for an effective date.
In our opinion, based upon the actuarial assumptions and methods employed in the
October 1, 2010 Actuarial Valuation, the proposed Ordinance is a no cost Ordinance under
State funding requirements.
If you should have any question concerning the above or if we may be of further assistance
with this matter, please do not hesitate to contact us.
Sincerest regards,
C4..
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosures
cc: Javier Banos, Esq.
Kenneth Harrison, Esq.
Palm Beach (3ardens, 1'1 V
(561) 624 -3277 (561) 624 -3278 FAX
Javier Banos, Esq, Chairperson
Rita Torres, Secretary
Doug Baker
Daniel Montana
Alfredo Riverol, CPA
Kate Reilley
LaTasba Nickle
Wednesday, 02 /02/2011
Hector Mirabile, City Manager
Agent for the City Commission of
The City of South Miami; Florida
6130 Sunset Drive
South Miami, FL 33143
RE: Proposed Pension Ordinance Amendment
Scott Baur, Administrator
Fran Coopersmith, Financial Advisor
lean Harrison, Esq, Board Attorney
Larry Wilson, Actuary
Dear Mr. Manager:
Enclosed I have presented to you a proposed amendment to the pension Ordinance of the City of
South Miami. I am respectfully requesting that you provide this amendment for the consideration of the
City Commission on their regularly scheduled meeting of March 15d, 2011.
I apologize to you and to the Commission for the sudden and untimely request of these changes,
but the Board finds itself in a difficult situation. We are trying in the best possible fashion to administer the
Fund in these difficult tunes, but the current ordinance is overly restrictive in its investment parameters,
which makes our job impossible at times.
As a way of background, please note that the Pension ordinance investment guidelines were written
20 years ago. The only implemented changes have been by former Commissioner Beckman restricting fixed
income investments to 40% of the Fund and a statutory amendments allowing increased foreign
investments. We have made several requests for these changes in the past, (the most recent one in March
2010), but the implementation of these requests have been derailed due to one reason or another.
Pension Resource Centers, LLC (561) 624 -3277
4360 Nortldake Blvd, Suite 206 (561) 624 -3278 FAX
Palm Beach Gardens, FL 33410
Due to events of these past few weeks, there is a real fear in the market that there could e a
significant downturn in the Bond Market. These fears has precipitated this request, because we are
FORCED to keep 401/6 of out Fund in the Bond Market.
The world has changed. There are a vast amount of investment options that the Pension Board is
unable to take advantage of because they need to be expressly allowed by ordinance. For instance most
mutual funds and ETF's use stock futures to balance inflows and outflows of monies. This prohibited the
Pension from investing in them. Fixed income was restricted and there are numerous changes to that
industry that necessitate the Pension having flexibility of not only the percentage of monies invested in fixed
income but also the type of fixed 'income investments.
It is imperative that the Pension Board be given the ability and flexibility to make investments
alternative investments from straight stock and bonds. They must have the ability to invest in alternative
investments such as convertible debt and real estate.
Wherefore, I do not only ask, but I beg of you that for the health of the plan, the benefit of the
employees and retirees, and the budgetary and general welfare of this City, that you approve these changes.
City of South. Miami Pension Board of Trustees,
Sincerely,
Javier Baaos, Esq, Chairperson
Pension Resource Cent=, LLC L - (561) 624 -3277
4360 Nortblake Blvd, Suite 206 (561) 62A -3278 FAX
Palm Beach Gardens, FL 33410
MIAMI DAiL.Y BUSINESS REVIEW
Published Dally except Saturday, Sunday and
Legal Holidays
Miami, Miami -Dade County, Florida
STATE OF FLORIDA
COUNTY OF MIAMI•DADE:
Before the undersigned authority personally appeared
V. PEREZ, who on oath says that he or she is the
LEGAL CLERK, Legal Notices of the Miami Daily Business
Review f /Ida Miami Review, a daily (except Saturday, Sunday
and Legal Holidays) newspaper, published at Miami in Miami -Dade
County, Florida; that the attached copy of advertisement,
being a Legal Advertisement of Notice in the matter of
CITY OF SOUTH MIAMI
PUBLIC HEARING & DATE CHANGE • APRIL 4, 2011
in the XXXX Court,
was published In said newspaper in the issues of
03125/2011
Affiant further says that the said Miami Daily Business
Review is a newspaper published at Miami in said Miami -Dade
County, Florida and that the said newspaper has
heretofore been continuously published in said Miami -Dade County,
Florida, each day (except Saturday, Sunday and Legal Holidays)
and has been entered as second class mail matter at the post
office in Miami in said Miami•Dade County, Florida, for a
period of one year next preceding the first publication of the
attached copy of advertisement; and affiant further says that he or
she has neither paid nor promised any person, firm or corporation
any discount, rebate, commission or refund for the purpose
of securing this advertisement -fpr publication in the said
newspaper. f r7 1
Sworn to and subscribed before me this
25 day o MARCH ,A.D. 2011
(SEAL)
V. PEREZ personally known to me
B.11iC M�tt L RIM
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CITY 6F.S1109
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NOTICE IS HEREBY given that the
Miami, Florida will conduct Public Ht
meeting scheduled for Mo d4i
the City Commission Chambers, fit
lowing itam(s):.
In
`prortdmg oti,enecnye uttra,.,::.gr•:y
/ A Ordinance of the MayOrmanr
South Miami Florida anlendrnl
amendment ofBec 16-$ 'Pbwe
canflrotand an effective date
A Resolution of the Mayor and.
Miami, Florida, aulhodzing the
agreelm I, th Property}3opii
municipel prc{pefiy;;aiitl.jirovl pjl
A Resolullon,of r and
Murnji,Florida, relating id coot
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School Crdssing Guard Services in FY 201t12D12r prowatng,q, b„
effective date.:,;. ..
A Resolution of the Mayor and City Commission--of the City of South
Miami, _Plant'. aulhtlrizing the `C)(y Ahlanager to execute ai
multi- annual se "'09 agreement with MaaMilian OIL,Campany'of,
Florida, 1no, fore purchase and delivery oj'60ik fuetgasoline and.
diesel for, the- 1tys, "dehiciefieet`afid,ilufpmert in ilia amoupt ai
$Yf0,tt1.00 to be charged tobepanmenia (Poet Account Numbers'
001 1320373 52'30;ODf•7340- '513-5230 001 1640.524 5230 001-
1910-521-6230 and 001- 20005725230 providmg'.for -an effective
date. -
ALL interested parties areInvited to attend aidwiil be heard.'
For further infomlatiop p`�eadb contact the City CierKs ONiczattl
305- 663 = 6340.. -prL»'�.:: .n '..
Maria M. Menendez, CMC
01hroterk
Pursuant to Florida Statutes 2860105;:the,City het-eby.iulvises the pubilol
that if a person. decides to ' appeal any demsfon made by this Board'
Agency or Commission,i litt respect any matter': cohsldered at its]
meeting or hearing, he or she will need a record of the proceedings, and;
thatforsuch purpose; affecl'eape rson*
rtay needto enstrrethaf averbatim:
record of the proceedings is mado which record includes the testimony.
andevidence upon wIt In '60 ppealis as 9 11 -;J 130/7 6 71 473M
3125: _.. .