2003-25274 ResoRESOLUTION NO. 2003-25274
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, CALLING FOR A SPECIAL
ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2003, FOR THE
PURPOSE OF SUBMITTING TO THE ELECTORATE OF THE CITY OF
MIAMI BEACH A QUESTION ASKING WHETHER ARTICLES VII AND
VIII OF THE CITY'S RELATED SPECIAL ACTS REGARDING THE
FIREFIGHTERS' RELIEF AND PENSION FUND AND THE POLICE
OFFICERS' RELIEF AND PENSION FUND SHOULD BE AMENDED TO
DELETE CERTAIN RESTRICTIONS CONCERNING THE INVESTMENT
AND ALLOCATION OF PENSION FUND ASSETS, AND TO SUBSTITUTE
THEREFORE LANGUAGE AUTHORIZING THE PENSION BOARD TO
EXERCISE, IN A PRUDENT MANNER, INDEPENDENT JUDGMENT IN
ALLOCATING AND INVESTING FUNDS?
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH:
SECTION 1.
In accordance with provisions of the Charter of the City of Miami Beach, Florida and the general
laws of the State of Florida, a Special Election is hereby called and directed to be held in the City of
Miami Beach, Florida, from 7:00 a.m. to 7:00 p.m. on Tuesday, November 4, 2003, for the purpose of
submitting to the electorate the question as set forth hereinafter.
SECTION 2.
That the appropriate and proper Miami-Dade County election officials shall conduct the said
Special Election hereby called, with Miami-Dade County's certification of the results of said Special
Election being accepted by the City Commission. The official returns for each precinct shall be
furnished to the City Clerk of the City of Miami Beach as soon as the ballots from all precincts have
been tabulated and results duly accepted by said appropriate Miami-Dade County Officials.
SECTION 3.
Said voting precincts in the City of said Special Election shall be as established by the proper
and appropriate Miami-Dade County Election Officials. All electors shall vote at the polling places and
the voting precincts in which the official registration books show that the said electors reside. A list of
the voting precincts and the polling places therein (subject to change by the Supervisor of Elections of
Miami-Dade County, in accordance with the laws of Florida) is attached hereto as Exhibit A.
SECTION 4.
Registration of persons desiring to vote in the Special Election shall be in accordance with the
general law of the State of Florida governing voter registration. Qualified persons may obtain
registration forms to vote at the Office of the City Clerk, CityHall, 1700 Convention Center Drive, First
Floor, Miami Beach, Florida 33139, during normal business hours, and at such other voter registration
centers and during such times as may be provided by the Supervisor of Elections of Miami-Dade
County. Each person desiring to become a registered voter shall be responsible for properly filling out
the registration form and returning it to the Miami-Dade County Elections Office. All questions
concerning voter registration should he directed to the Miami-Dade County Elections Office, 111
Northwest 1st Street, Floor 19, Miami, Florida 33130; Mailing Address: P.O. Box 012241, Miami,
Florida 33101; Telephone: (305) 375-5553.
SECTION 5.
Not less than thirty days' notice of said Special Election shall be given by publication in a
newspaper of general circulation in Miami Beach, Miami-Dade County, Florida. Such publication shall
be made at least once each week for four consecutive weeks next preceding said Special Election.
SECTION 6.
The notice of election shall be substantially in the following form:
THE CITY OF MIAMI BEACH, FLORIDA
NOTICE OF SPECIAL ELECTION
NOTICE IS HEREBY GIVEN THAT A SPECIAL ELECTION HAS BEEN
CALLED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AND WILL BE HELD IN SAID CITY FROM 7:00
A.M. UNTIL 7:00 P.M. ON THE 4TH DAY OF NOVEMBER, 2003, AT WHICH
TIME THERE SHALL BE SUBMITTED TO THE DULY REGISTERED AND
QUALIFIED VOTERS OF THE CITY OF MIAMI BEACH THE FOLLOWING
QUESTION:
FIREFIGHTER AND POLICE PENSION FUNDS:
DELETING SPECIFIC INVESTMENT/ALLOCATION RESTRICTIONS
AND SUBSTITUTING "PRUDENT PERSON" STANDARD
SHALL THE CITY'S RELATED SPECIAL ACTS, ARTICLES VII AND VIII
REGARDING THE CITY'S RELIEF AND PENSION FUNDS FOR
FIREFIGHTERS AND POLICE OFFICERS, BE AMENDED TO DELETE
CERTAIN RESTRICTIONS CONCERNING THE INVESTMENT AND
ALLOCATION OF PENSION FUND ASSETS, AND TO SUBSTITUTE
THEREFOR LANGUAGE AUTHORIZING THE PENSION BOARD TO
EXERCISE, IN A PRUDENT MANNER, INDEPENDENT JUDGMENT IN
ALLOCATING AND INVESTING FUNDS?
YES
NO
SECTION 7.
The official ballot to be used in the Special Election to be held on November 4, 2003, hereby called,
shall be in substantially the following form, to-wit:
OFFICIAL BALLOT
THE CITY OF MIAMI BEACH, FLORIDA
NOTICE OF SPECIAL ELECTION, NOVEMBER 4, 2003.
NOTICE IS HEREBY GIVEN THAT A SPECIAL ELECTION HAS BEEN
CALLED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AND WILL BE HELD IN SAID CITY FROM 7:00
A.M. UNTIL 7:00 P.M. ON THE 4TH DAY OF NOVEMBER, 2003, AT WHICH
TIME THERE SHALL BE SUBMITTED TO THE DULY REGISTERED AND
QUALIFIED VOTERS OF THE CITY OF MIAMI BEACH THE FOLLOWING
QUESTION:
FIREFIGHTER AND POLICE PENSION FUNDS:
DELETING SPECIFIC INVESTMENT/ALLOCATION RESTRICTIONS
AND SUBSTITUTING "PRUDENT PERSON" STANDARD
SHALL THE CITY'S RELATED SPECIAL ACTS, ARTICLES VII ~ vm
REGARDING THE CITY'S RELIEF AND PENSION FUNDS FOR
FIREFIGHTERS AND POLICE OFFICERS, BE AMENDED TO DELETE
CERTAIN RESTRICTIONS CONCERNING THE INVESTMENT AND
ALLOCATION OF PENSION FUND ASSETS, AND TO SUBSTITUTE
THEREFOR LANGUAGE AUTHORIZING THE PENSION BOARD TO
EXERCISE, IN A PRUDENT MANNER, INDEPENDENT JUDGMENT IN
ALLOCATING AND INVESTING FUNDS?
YES
NO
SECTION 8.
Absentee voters participating in said Special Election shall be entitled to cast their ballots in
accordance with the provisions of the laws of the State of Florida with respect to absentee voting.
SECTION 9.
That the City of Miami Beach shall pay all expenses for conducting this Special Election and
will pay to Miami-Dade County or directly to all persons or firms, upon receipt of invoice or statement
approved by the Supervisor of Elections of Miami-Dade County, Florida.
SECTION 10.
If any section, sentence, clause or phrase of the proposed ballot measure is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the
validity of the remaining portions of said ballot measure.
SECTION 11.
This resolution shall be effective immediately upon its passage.
PASSED and ADOPTED this 30th day
ATTEST:
CITY CLERK
Resolut±on No. 2003-2527/*
of / ~Julya , ,2003.
/ I/MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Proposed Amendment to City of Miami Beach Related Special Acts Articles VII and VIII for November
4, 2003 Special Election:
A. Proposed Ballot Question
FIREFIGHTER AND POLICE PENSION FUNDS:
DELETING SPECIFIC INVESTMENT/ALLOCATION RESTRICTIONS
AND SUBSTITUTING "PRUDENT PERSON" STANDARD
SHALL THE CITY'S RELATED SPECIAL ACTS, ARTICLES VII AND VIII
REGARDING THE CITY'S RELIEF AND PENSION FUNDS FOR
FIREFIGHTERS AND POLICE OFFICERS, BE AMENDED TO DELETE
CERTAIN RESTRICTIONS CONCERNING THE INVESTMENT AND
ALLOCATION OF PENSION FUND ASSETS, AND TO SUBSTITUTE
THEREFOR LANGUAGE AUTHORIZING THE PENSION BOARD TO
EXERCISE, IN A PRUDENT MANNER, INDEPENDENT JUDGMENT IN
ALLOCATING AND INVESTING FUNDS?
YES
NO
B. Proposed text
That Part I, Subpart B, Article VII, Section 40 of the City's Related Special Acts, entitled "Same;
Power and Authority," is amended to read:
The board shall have power and authority as follows:
(a) To have exclusive charge of the investment of any assets in the fund not needed for the
fund's current obligations, and to invest and reinvest such assets in accordance with the written
investment policy adopted by the board pursuant to paragraph (b), below. Board members must
discharge their duties with respect to the plan solely in the interest of the participants and
beneficiaries and for the exclusive purpose of: (i) providing benefits to participants and their
beneficiaries; and (ii) defraying reasonable expenses of administering the plan; with the care, skill,
prudence, and diligence under the circumstances then prevailing that a prudent person acting in a
like capacity and familiar with such matters would use in the conduct of an enterprise of a like
character and with like aim s; by diversifying the investments of the plan so as to minimize the risk
of large losses, unless under the circumstances it is clearly prudent not to do so. Within the
limitations of the foregoing standards and investment policy, the board is authorized to acquire
and retain in the fund every kind of investment specifically including, but not limited to stocks,
bonds, securities, debentures, real estate, mutual funds, trusts and other obligations which
persons of prudence, discretion and intelligence acquire or retain for their own account. The
intent of this paragraph is to remove any and all investment restrictions which are otherwise
imposed by Ch. 175, Florida Statutes, and which may be removed.
(b) To adopt and periodically update a written investment policy in accordance with Section
112.661, Florida Statutes, as such statute may be amended in the future.
(b)(c) To approve loans and claims, and to authorize payments from the fund by warrants
signed by the chairman and secretary of the board.
(c)(d) To interpret the provisions of this Act where the meaning is not clear or ambiguity
exists; and to promulgate necessary rules respecting the operation of the fund, not in conflict
with the wording or clear intent of this Act.
(d)(e) To authorize expenditures in connection with preliminary research and technical
services, accounting, auditing and general administration of the fund.
(e-)(f) To do such other things as may be necessary to implement and provide for the proper
functioning of the fund.
Part 1, Subpart B, Article VIII, Section 53 of the City's Related Special Acts entitled "Same:
Power and Authority," is amended to read:
The board shall have power and authority as follows:
(a) To have exclusive charge of the investment of any assets in the fund not needed for
the fund's current obligations, and to invest and reinvest such assets in accordance with the
written investment policy adopted by the board pursuant to paragraph (b) below. Board
members must discharge their duties with respect to the plan solely in the interest of the
participants and beneficiaries and for the exclusive purpose of: (i) providing benefits to
participants and their beneficiaries; and (ii) defraying reasonable expenses of administering
the plan; with the care, skill, prudence and diligence under the circumstances then prevailing
that a prudent person acting in a like capacity and familiar with such matters would use in
the conduct of an enterprise of a like character and with the like aims; by diversifying the
investments of the plan so as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so. Within the limitations of the foregoing
standards and investment policy, the board is authorized to acquire and retain in the fund
every kind of investment specifically including, but not limited to stocks, bonds, securities,
debentures, real estate, mutual funds, trust and other obligations which persons of prudence,
discretion and intelligence acquire or retain for their own account. The intent of this
paragraph is to remove any and all investment restrictions which are otherwise imposed by
Ch. 175, Florida Statutes, and which may be removed.
(b) To adopt and periodically update a written investment policy in accordance with
Section 112.661, Florida Statutes, as such statute maybe amended in the future.
(b)(c) To convert into cash such securities or savings accounts as may be required for the
payment of claims against the fund or for necessary operating expenses.
(e)(d) To approve claims and to authorize payments from the fund by warrants signed by
the chairman and the secretary of the board.
JK0/ED
F:~tto~$ALLXxLA1LAXJKOLRSA-Article VII.doc
CITY OF MIAMI BEACH ~1~
COMMISSION ITEM SUMMARY
Condensed Title:
I
whether sections of Article VII and VIII of the Related Special Acts should be amended as it relates to the I
I
A Resolution calling for a Special Election on November 4, 2003 to submit to the voters a question asking
investment of funds in the 175/185 Fund for City Firefi~lhters and Police~
Issue:
Should the City submit to referendum the question of amending the language of Articles VII and VIII
(175/185 Funds) as to investment of the funds in the same manner as is stated by the Employee
Retirement Income Security Act (ERISA) that refers to the "prudent man investment standard"?
Item Summary/Recommendation:
The Administration recommends that the City Commission adopt the Resolution and authorize the Special
Election to be held on November 4, 2003 for the purpose of submitting this question to the electorate.
Advisory Board Recommendation:
The Board of Trustees of the Firemen's Relief and Pension Fund (175) and the Policemen's Relief and
Pension Fund (185) have unanimously recommended to the City Commissioners an amendment to
their plans to remove all investment restrictions and provide the Board with "prudent person investment
standards".
Financial Information:
Funds:
Finance Dept.
City Clerk's Office Legislative Tracking:
A...DA
DATE
COMMISSION MEMORANDUM
To:
From:
SUBJECT:
Date: July 30, 2003
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~ ~ ~
City Manager
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, CALLING FOR A SPECIAL ELECTION TO BE
HELD ON TUESDAY, NOVEMBER 4, 2003, FOR THE PURPOSE OF
SUBMITTING TO THE ELECTORATE OF THE CITY OF MIAMI BEACH A
QUESTION ASKING WHETHER ARTICLE VII AND VIII OF THE CITY'S
RELATED SPECIAL ACTS REGARDING THE FIREFIGHTERS' RELIEF AND
PENSION FUND AND THE POLICE OFFICERS' RELIEF AND PENSION
FUND SHOULD BE AMENDED TO DELETE CERTAIN RESTRICTIONS
CONCERNING THE INVESTMENT AND ALLOCATION OF PENSION FUND
ASSETS, AND TO SUBSTITUTE THEREFOR LANGAUGE AUTHORIZING
THE PENSION BOARD TO EXERCISE, IN A PRUDENT MANNER,
INDEPENDENT JUDGMENT IN ALLOCATING AND INVESTING FUNDS?
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
The Firefighters' Relief and Pension Fund (175) and the Police Officers' Relief and Pension
Fund (185) are requesting that the language of the Related Special acts, Article VII
Firefighters Relief and Pension Fund, Section 40 (a) and Article VIII Police Officers' Relief
and Pension Fund, Section 53 (a) be amended to remove all investment restrictions and
provide the Board with "prudent person investment standards." The Board of the Police
Officers' Relief and Pension fund recommended that language be changed at their meeting
of July 14, 2003. The Board of the Firefighters' Relief and Pension Fund recommended
the same at their meeting of July 21, 2003 (Attachments A & B).
Specific restrictions currently exist on the manner in which funds in the 175/185 funds may
be invested, limiting the investments to mainly bonds, notes securities, shares or other
interest-bearing obligations of the Government of the United States, states, territories or
possessions of the United States. The City ^dministration agrees with the request of the
175/185 Boards of amending the language in these plans. The City recommends utilizing
the fiduciary language contained in the Employee Retirement Income Security Act
("ERISA") of 1974. ERISA does not usually apply to governmental pension plans; however
in 2000 the Florida Legislature enacted a law that applies ERISA fiduciary standards to
these plans.
ERISA requires that a pension trustee make investment decisions:
"with the care, skill, prudence, and diligence under the cimumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims; by diversifying the
investments of the plan so as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so; and in accordance with the documents and
instruments governing the plan .... "
Based on case law it is understood that ERISA does not require pension board members
to be experts on all types of investments they make, however they must seek independent
advice if they lack the knowledge skills and experience required to adequately evaluate the
investment.
Amendments to change the language of the above stated sections of Article VII and Article
VIII of the Related Special Acts shall be submitted to referendum on November 4, 2003
and shall take effect upon approval of the electorate and Ordinance of the City
Commission.
CONCLUSION:
The Administration recommends that the City Commission adopt the Resolution and
authorize a special election to be held in the City of Miami Beach, Florida on November 4,
2003, for the purpose of submitting this question to the electorate.
JMG:MDB:TCA:pah
CITY OF MIAMI BEACH, FLORIDA
FIREMEN'S RELIEF AND PENSION FUND
Date:
Time:
Subject:
Attendance:
July 21, 2003
10:00 AM
Minutes of Special Meeting
Regarding Investment Amendment
Lee Amato, Chai[aian
Floyd Jordan, Secretary
Mike Brady, Trustee
Christina Cuervo, Trustee
T. C. Adderly, Trustee
The Board unanimously recommends to the City Commissioners an amendmem to the
175 Plan by way of referendum to remove all invesm~ent restrictions and provide the
Board with '¥mdem person investmem standards".
CC:
Mayra Diaz Buttacavoli, Asst. Manager
Stephen Cypen, Esq.
MIAMI BEACH POLICEMEN'S R~q.n~.v AND PENSION FUND
999 11TM STREET
MIAMI BEACH, FLORIDA 33139
03 JUL 18 P~'~ 12:08
Chairman
Robert Jenkins
Secretary
Howard Zeifman
T~ustees
David Allen
Gregory Butler
William Riley III
Administrative
Director
Peter Matthews
Date:
Time:
Subject:
Attendance:
Absent:
July 14, 1003
6:00 pm
Minutes ot~ Special Meeting
Regarding Investment Amendment
Robert Jenkins, Chairman
Howard Zeifinan, Secretary
David Alien, Trustee
William Riley, Trustee
Peter Matthews, Executive Director
Gregory Butler, Trustee (vacation)
The Board unanimously recommends to the City Commissioners an
amendment to the 185 Plan by way of referendum to remove all
investment restrictions and provide the Board with "prudent person
investment standards."
Myra Diaz Buttacavoli,
Assistant City Manager
Stephen Cypen, Esq.
Office (305) 531-5636 ext. 35 Pager (305) 841-2870 Fax (305) 673-4690