17Ill
ORDINANCE No.
6 A Ordinance of the Mayor and the City Commission of the City of South Miami,
7 Florida amending the Pension Plan providing for an amendment of Sec 16 -37
8 Powers of Board.
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10 WHEREAS, the current pension language is restrictive and outdated and,
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12 WHEREAS, it is in the best interest to provide the Pension Board with the ability to consider
13 investments that are prudent and in tune with today's investing climate.
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16 NOW, THEREFORE, IT BE ORDAINED BY THE MAYOR AND CITY COMMISSION OF
17 THE CITY OF SOUTH MIAMI, FLORIDA:
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19 Section I
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21 That the forgoing whereas clauses are hereby ratified and confirmed as being true and correct
22 and hereby made a specific part of this ordinance upon adoption hereof.
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24 Section 2
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26 Section 16 -37 of the Code of Ordinances of the City of South Miami is hereby amended as
27 follows.
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29 Sec. 16 -37. - Powers of board
30 The board shall have the power and authority as follows:
31 To
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15 Fund management and investments.
16 (a) The plan is hereby established, pursuant to authority granted in Chapter 16 of the City
17 of South Miami Code of Ordinances as a trust fund into which shall be deposited all of the
18 assets of the plan of every kind and description.
19 b The actual custody and su ervision of the fund shall be vested in the Board. All assets
20 of the plan may be commingled, provided that accurate records are maintained at all times
21 reflecting the fnancial composition of the fund including accurate accounts regarding the
22 following:
23 1 Current amounts of accumulated contributions of members both on an individual and
24 aggregate basis;
25 (2) Receipts and disbursements;
26 (3) Benefits payments,
27 (4 ) All contributions from the City;
28 (5) All contributions from the State of Florida pursuant to Chapter 185;
29 (6) All interest dividends gains and losses from investment;
30 (7) Such other entries as may be required for a clear complete financial report of the status
31 of the Fund.
32 (c) The Board shall establish a written investment policy with the advice and counsel of
33 such advisors as the Board deems necessary, and said investment policy shall set forth the
34 tales of securities and other types of investments into which shall be placed the assets of
35 the fund The policy shall further set forth appropriate limitations on those investments,
I including,, but not limited to anticipated rate of return quality of investment, class of
2 investment and acceptable risk The Board shall have the authority to invest and reinvest
3 the assets of the plan in such securities or pzoperty real or personal as the Board deems
4 appropriate including but not limited to:
5 (1) Bonds notes or other obligations of the United States or any of its agencies, or those
6 guaranteed by the United States or for which the credit of the United States is pledged for
7 the paw ent of the pzincipal and interest or dividends thereof;
$ 2ZAccounts or certificates of deposit in any bank or other financial institution
9 incorporated under the laws of the State of Florida or any national bank organized under
10 the laws of the United States or authorized to do business and situated zn the State of
11 Florida to the extent that such certificates of deposit are secured by the deposits of
12 securities of the United States governrnent;
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recognized ratings services in any one of the four highest classifications appzoveo py me
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;
23 (5) Bonds issued by the State of Israel;
24 (6) Real estate which may be in the form of commingled ownership and financial
25 institutional futures listed options stock index futures which maybe used under specific
26 instruction of mangers;
27 (7) Common stock preferred stock and interest- bearing obligations of domestic
28 cgoorations having_an option to convert into common or preferred stock issued by a
29 corporation organized under the laws of the United States any State or organized territory
30 of the United States or any state or organized territory of the United States and the District
31 of Columbia.
32 (8) Index funds and collective investment funds.
33 (9) Foreign securities not to exceed 25 percent of the portfolio at market value.
34 00) Any other investment permitted by law.
35 The Board may determine the percentage of each type of investment to beheld.
n
1 (e) The Board shall be authorized to retain one of more money managers for the
2 management of property held in the plan and the Board shall convey property Of the plan
3 to such money managers for investment and reinvestment in accordance with the teens of
4 this article and the investment policies established by the Board. Any such money manager
5 contracting with the Board for the investment of its assets shall be deemed a frduciM of
6 the plan.
7 (f) The Board shall have a continuing duty to observe and evaluate the performance of an
8 money manager retained by the Board The Board shall in selecting a money manager or
9 other investment counsel exercise all judgment and care in the circumstances the
10 prevailing which persons of prudence discretion and intelligence exercise in the
I I management of their own affairs.
12 (g) The Board shall require that any money manager or other agent who has custody or
13 control of an roperty of the plan to keep accurate and detailed accounts of all
14 investments receipts disbursements and other transactions pertaining to such Trust
15 property, and the Board shall further require that all accounts books and records_pertaining
16 thereto be open for inspecting and audit at all reasonable times by the City the Board or
17 the designees.
18 (h)The i3oarn snag aiso Keep avvuiaio m.µ _ . --- —
19 disbursements or other transactions ertainin .to the Trust property and all accounts books
20 and records pertaining thereto shall be open to ins ection and audit at all reasonablc times
21 by the City or its designees.
22 (i)The board shall identify and publicly report any direct or indirect holdings it may have
23 in any scrutinized company as defined in F S S 215.473, and proceed to sell. redeem,
24 divest or withdraw all publicly traded securities it may have in such company beginning
25 January 1 2010 and shall thereafter be prohibited from purchasing or holding such
26 securities The divestiture of any such security must be completed by September 30, 2010.
27 in accordance with Ch 2009-97, Laws of Florida no person may bring any civil, criminal,
28 or administrative action against the board or any em to ge officer director or advisor of
29 such board based upon the divestiture of any security pursuant to this paragraph
30
31 Other Powers
32 (a) To perform the acts required as the administrator of the plan. The board may_ delegate
33 administrative duties in its discretion.
34 (b) To approve disbursements pay claims and authorize payments from the fund by
35 warrants signed by the chairman and the secretary of the board.
36 (c) l o mtE reI me rV vistvus vi llul w4.v ..........
37 exists; and to promulgate necessary rules res ectin the operation of the fund or electio
38 of trustees not in conflict with iI e wording or clear intent of this article. In the event of
39 any conflict, the provisions of Chapter 185 of the Florida Statutes shall prevail.
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d To authorize ex enditure in connection with relimin research be
services
legal services and accountinu 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 take effect immediately upon adoption.
PASSED AND ADOPTED this ____, day of 2011.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Beasley:
Commissioner Palmer
Commissioner Harris:
Palm Beach Gardens, FL 33410
(561) 624 -3277 (561) 624 -3278 FAX
Javier Banos, Esq, Chairperson
Rita Torres, Secretary
Doug Baker
Daniel Montana
Alfredo Riverol, CPA
Kate Reilley
LaTasha Nickle
Wednesday, 02/02/2011
Hector Mirabi e, 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
Dear Mr, Manager:
Scott Baur, Administrator
Fran Coopersmitb, Financial Advisor
Ken Harrison, Esq, Board Attorney
Larry Wilson, Actuary
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 times, 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 Northlake Blvd, Suite 206
Palm Beach Gardens, FL 33410 (561) 624 -3278 FAX
Due to events of these past few weeks, there is a real fear in the market that there could be a
significant downturn in the Bond Market. These fears has precipitated this request, because we are
FORCED to keep 40% of our 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 Banos, Esq, Chairperson
Pension Resource Centers, LLC 2
4360 Northlake Blvd, Suite 206 (561) 624-3277
Palm Beach Gardens, FL 33410 (561) 624 -3278 FAX
MIAMI DAILY 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 VIVa 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
03/25/2011
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 advertiseme r publication in the said
newspaper. '� r71
Sworn to and subscribed before me this
25 day o MARCH A.D. 2011 �-
(SEAL)
V. PEREZ personally known to me
8 THOMAS
w, C om 4 DLI 937632
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ITY O�SOUTR�LIIAMI
mug ICE OFPIJBLIQ "kIEA ING'
ANDDATECHANGE
NOTICE IS HEREBY given that the City Commission of the City, of South
Miami, Florida will conduct Public Headings at its,regular Pity Commission
meetingscheduled for Monday Aorll 4 20$1' beginning at 7 30 p.m., in
the City Commission Chambers, 613o sunset Drive, to consider me fof=
lowii
A Resolution of the Mayor and City Commission.of the City of South;
Miami,( Florida, 'authonzmg`tie'City`Manager to execute a-
multi - annual seice agreement with MacMillan OH.Company of
Florida, Inc for t e purchase and delivery gfbblk fuel gasoline and
diesel for the Cltys, vehicle fleet andfegailAight in m
,itie amount of
$110,11 i m, to be charged tobeparinbim l Fuel Account Numbers
1910 -521 -5230 and 007 -2000 57? -,pz3u prowcmg for an eueuuvn
date.
ALL interested parties are invited to attend and will be heard. '
For further mforin' atiorl please contact the City Clerks Otfwe•at:
805- 6636340 S.
Marta M. Menendez, CMG
City Clerk
Pursuant to Florida Statutes 286.0105, the City hereby advises the public!
that if a person decides to appeal any decision made by this Board"
Agency or Commission,with respect to any matter considered at its'i,
meeting or hearing, he or she will need a record of the proceedings, and,
that for such purpose; affected person may need to ensure that 4 verbatim ,
record of the proceedings, is made which record includes the testimony:
and evidence upon whichthe appeal is to lie based.
3/25. ... -.. 11- 3- 130/1671473M
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