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72 ORDINANCE No. 3 4 A Ordinance of the Mayor and the City Commission of the City of South Miami, 5 Florida amending the Pension Plan providing for the addition of Sec 16 -20(L) 6 Powers of Board; providing for severability, ordinances in conflict and an 7 effective date. 9 WHEREAS, the current pension language is vague as to the investment authority of the 10 Pension Board and, 11 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 14 15 16 NOW, THEREFORE, IT BE ORDAINED BY THE MAYOR AND CITY COMMISSION OF 17 THE CITY OF SOUTH MIAMI, FLORIDA: 18 19 Section 1 20 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. 23 24 Section 2 25 26 Section 16 -20 (L) of the Code of Ordinances of the City of South Miami is hereby added to read 27 as follows. 10 29 Sec 16 -20 (L) — Investment Powers of Board. 30 The board shall have the power and authority as follows: 31 Fund management and investments. 32 (1) The plan is hereby established pursuant to authority ranted in Chapter 16 of the City 33 of South Miami Code of Ordinances as a trust fund into which shall be deposited all of the 34 assets of the plan of every kind and description. 35 (2) The actual custody and supervision of the fund shall be vested in the Board. All assets 36 of the plan may be commingled, provided that accurate records are maintained at all times 37 reflecting the financial composition of the fund including accurate accounts regarding the 38 following: 39 a. Current amounts of accumulated contributions of members both on an individual and 40 aggregate basis; 41 b. Receipts and disbursements; N I c. Benefits payments; ents; 2 d All contributions from the City; 3 e All contributions from the State of Florida pursuant to Chapter 185; 4 f All interest dividends gains and losses from investment; 5 g Such other entries as may be required for a clear, complete financial report of the status 6 of the Fund. 7 (3) The Board shall establish a written investment policy, with the advice and counsel of 8 such advisors as the Board deems necessary and said investment policy shall set forth the 9 types of securities and other types of investments into which shall be placed the assets of 10 the fund The policy shall further set forth appropriate limitations on those investments, 11 including but not limited to anticipated rate of return quality of investment class of 12 investment and acceptable risk The Board shall have the authority to invest and reinvest 13 the assets of the plan in such securities or property, real or personal as the Board deems 14 appropriate including but not limited to: 15 a Bonds notes or other obligations of the United States or any of its agencies or those 16 guaranteed by the United States or for which the credit of the United States is pledged for 17 the payment of the principal and interest or dividends thereof; 18 b Accounts or certificates of deposit in any bank or other financial institution incorporated 19 under the laws of the State of Florida or any national bank organized under the laws of the 20 United States or authorized to do business and situated in the State of Florida. to the 21 extent that such certificates of deposit are secured by the deposits of securities of the 22 United States government; 23 c Notes secured by first mortgages on real property insured or guaranteed by the Federal 24 Housing Administration or the Veterans Administration; 25 d Interest bearing obligations with a fixed maturity of any corporation organized under the 26 laws of the United States any state or organized territory of the United States and the 27 District of Columbia; provided that such obligations are rated by at least two nationally 28 recognized ratings services in any one of the four highest classifications approved by the 29 Comptroller of the Currency for the investment of funds of national banks or, if only one 30 nationally recognized ratings service shall rate such obligations such ratings service must 31 have rated such obligation in any one of the four highest rating classifications as set forth 32 in this subsection; 33 e Bonds issued by the State of Israel; 34 f Real estate which maybe in the form of commingled ownership and financial 35 institutional futures listed options stock index futures which may be used under specific 36 instruction of managers; n 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. 6 h. Index funds and collective investment funds. 7 i Foreign securities not to exceed 25 percent of the portfolio at market value. 8 i. Any other investment permitted by law. 9 (4) The Board may determine the percentage of each type of investment to be held. 10 (5) The Board shall be authorized to retain one of more money managers for the 11 management of property held in the plan and the Board shall convey property of the plan 12 to such money managers for investment and reinvestment in accordance with the terms of 13 this article and the investment policies established by the Board. Any such money manager 14 contracting with the Board for the investment of its assets shall be deemed a fiduciary of 15 the plan. 16 (6) The Board shall have a continuing duty to observe and evaluate the performance of an y 17 money manager retained by the Board. The Board shall in selecting a money manager or 18 other investment counsel exercise all judgment and care in the circumstances then 19 prevailing which persons of prudence, discretion and intelligence exercise in the 20 management of their own affairs. 21 (7) The Board shall require that any money manager or other agent who has custody or 22 control of any property of the plan to keep accurate and detailed accounts of all 23 investments receipts disbursements and other transactions pertaining to such Trust 24 property, and the Board shall further require that all accounts, books and records pertaining 25 thereto be open for inspecting and audit at all reasonable times by the City, the Board or 26 the designees. 27 (8) The Board shall also keep accurate and detailed accounts of all investments, receipts, 28 disbursements or other transactions pertaining to the Trust property and all accounts, books 29 and records pertaining thereto shall be open to inspection and audit at all reasonable times 30 by the City or its designees. 31 32 (9)The board shall identify publicly report any direct or indirect holdings it may have 33 in any scrutinized company, as defined in F S & 215.473, and proceed to sell redeem 34 divest or withdraw all publicly traded securities it may have in such company beginning 35 January 1 2010 and shall thereafter be prohibited from purchasing or holding such 36 securities The divestiture of any such security must be completed by September 30, 2010. 37 In accordance with Ch 2009 -97 Laws of Florida no person may bring any civil, criminal, 38 or administrative action against the board or any employee officer, director, or advisor of 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 El such board based upon the divestiture of any security pursuant to this paragraph (10) 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 pay claims and authorize payments from the fund by warrants si ng ed 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. 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 , day of , 2011. ATTEST: CITY CLERK I't Reading — 2 "d Reading - READ AND APPROVED AS TO FORM: CITY ATTORNEY APPROVED: 1' 0' COMMISSION VOTE: Mayor Stoddard: Vice Mayor Newman: Commissioner Beasley: Commissioner Palmer Commissioner Harris: MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday. Sunday and Legal Holidays Miami, Miami -Dade County, Florida STATE OF FLORIDA COUNTY OF MIAMI -DADE: Before the undersigned authority personally appeared MARIA MESA, who on oath says that he or she is the LEGAL CLERK, Legal Notices of the Miami Daily Business Review f /k/a 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 MAY 3, 2011 in the XXXX Court, was published in said newspaper in the issues of 04/22/2011 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 securiw�tion in the said subscribed before me this 22 day of APRIL , A.D. 2011 (SEAL) MARIA MESA personally known to me R-0, ::: tary Public Stale of Fonda Cheryl H. 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