Res. No. 231-97-10201RESOLUTION NO.231-97-10201
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITYOFSOUTHMIAMI,FLORIDA,RELATINGTOFINANCE;
AUTHORIZING THE CITY ATTORNEY TO ENGAGE SMITH BARNEY
TO PERFORM A COMPLIANCE AUDIT OF THE CITY'S PENSION
PLAN FOR A FEE NOT TO EXCEED $5,000;CHARGING THE AMOUNT
TO THE CITY EMPLOYEE PENSION FUND;PROVIDING AN
EFFECTIVE DATE.
WHEREAS,theMayorandCityCommissionoftheCity ofSouthMiamiperiodically
directthatCityfinancialfunctionsbeauditedforcompliancewithapplicablelaws;and,
WHEREAS,the Mayor andCityCommission directed theCity Attorney to submit
aproposalbyaqualifiedfirmforperformingacomplianceaudit of the City's pension plan
andto evaluate the performance of the investment program;and,
WHEREAS,theCity Attorney submitted a proposal by Smith Barney to perform the
work.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA:
Section 1.The proposal by Smith Barney,Inc.,dated October 9,1997,to perform
a compliance audit of the City's pension plan andto evaluate the performance of the
investment program is approved andtheCity Attorney is authorized to engage the firm for
a cost not to exceed $5,000.00.
Section 2.Charges incurred forthe work will be charged to the City Employee
Pension Fund.
Section 3.This resolution shall take effect immediately upon approval.
Page 2 of Res.#231-97-10201
PASSED AND ADOPTED this J day of Nov..1997.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
ClfY ATTORNEY
smilhbamey.res
COMMISSION VOTE:5-0
Mayor Price:Yea
Vice Mayor Robaina:Yea
Commissioner Young:Yea
Commissioner Bethel:Yea
Commissioner Oliveros:Yea
CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
To:MayorandCityCommission
From:Earl G.Gallop (////
Date:October 29,1997 13
Re:Resolution authorizing City
Attorneyto engage Smith Barneyto
audit pension plan
Statementoftheproblem:The city commission is required to exercise due diligence
inthe management of pension funds.The pension planhasnotbeenauditedfor compliance
withlawsfor several years.In addition,the performance oftheinvestmentplanhasnotbeen
evaluated.
Peter Bermont,of the Bermont GroupatSmithBarney,submitteda proposal,atmy
request,to perform a compliance auditand performance evaluation foracostnotto exceed
$5,000,The proposal is responsive tomy directions.The firm will identify any deficiencies
and tinder-performance of investments,and will make recommendations asmaybe
appropriate.1 expect that Smith Barney will give professional,unbiased advice concerning
the performance ofthe investment plan.The work will be performed beforetheendofthe
year.Acopy of the October 9proposalandSOQareattached.
In response to Commissioner Young's direction atthe October 21city commission
meeting,inthe event the consultant advises thatthe invested funds are under-perfbrrning,I
willsolicitproposalsfromqualifiedfinncial advisors foraninvestment program.
Recommendation:Approve the resolution authorizing theCityAttorneyto engage
Sinith Barney to perform thework.
SMITHBARNEy 3C5-577-11CS «B00-3Z7-4GC7
kUtmbxtlftMbtaGroitpT
October 9,1997
Mr.Sari Gallop,e«q.
City Attorney
Cityof south Miami
6130 Suneftt Drive
SOUth Miami,FL 33143
Dear Serli
Thisletteristo propose thattheCityofSouthMiamiretainthe
aervicee ofSmith Barney,inc.for the purpose of evaluating the
City•Penaion Syetem.Our objective wouldbetoevaluatethe
fallowing areas;
-Performance measurement of the current advisor*
•"Prudent and ethical standards compliance.
-Compliance with current Laws and Rulee.
-Proper Inveetment objective*beingin place and adhered to,
Ne would avail ourselves of you*current advisors,The wyatt
Wilson Co.,and invetco CapitalManagement.Ourfee would be at
therateof 5250-QG per hour.Wewouldhopenottoexceedthe
annual billings of $5,BO®.The first y«at billing*/however,
could bein exceaa of that amount.
Asyoumay recall,wedidthe original restructuring of tha
Pension plan,i look forward to hearing form you soon.
PL8/lg
^"very\ruly yours,
Peter L.Bermont
QW1K BAWtoi*INC.Ont S-E.jfJ ^ven*.gtyn fiecr.Mam\FL 3313V"ft*FAX 2O5-373-303S
13
Our Company ^^
Smith Barney Inc.isa subsidiary of The Travelers Corporation,one of the worlds largest diversified financial services
companies.We have over $482 billion of assets in custody for our clients.Founded in 1873,Smith Barney is one ofthe
oldest and most prestigious investment firms in the U.S.Headquartered in New York City,the firm has 28,000
employees in 450 offices in the U.S.and 17 overseas who provide a complete range of investment products and advisory
services to nearly 5 million individual and institutional investors,corporations and governments.
Portfolio Management Team
Peter L.Bermont isa graduate of Texas Christian University with a degree in Finance.He is a graduate of the New
York Institute of Finance,a past president and Co-Founder of the Miami Bond Club,Past Chairman,Board ofTrustees
Ransom Everglades School andPast President,Temple Israel
Richard R Bermont graduated from the University of Texas with a BA in Economics and Finance.He was a Trustee of
the University of Miami and Past President of the Economic Society of South Florida.
Peterand Richard's entirecareershavebeenintheinvestment business.TheyopenedandmanagedtheDrexel Burnham
•office in Miami from 1974 until itssaleinMay of 1989.Atthat time,theyjoined Smith Barney as Senior Vice
Presidents to manage the Miami Branch.Together,they have a total of almost sixty years of investment experience in the
financial markete and have $792,000,000.00 in assets for their clients.
Adam E.Car tin isa graduate of Florida Atlantic University with a BA in Finance and has his MBA from the University
ofMiami.Adamwasa co-author ofFinance textbooks and was aGraduate Assistant fortheUniversity ofMiami
Graduate Business School.
Mindi Forer hasbeeninthe investment business fortwenty years.After attending Syracuse University,she started her
careerwith Prudential Bache.In 1981,shejoinedthe Bermonts attheDrexelBurnham Lambert.
Elizabeth Green hasherMBAfromtheUniversity ofMiamiwithaconcentrationinInternational Business.Lizhas
experience bothasan institutional andasaretail broker.
Ivis Hernandez,Operations Manager,isa graduate of Florida International University withher BA in MIS/Management.