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Ordinance 2000-3247 ORDINANCE NO, 2000-3247 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA, AMENDING ORDINANCE NO. 1901 WHICH CREATED THE RETIREMENT SYSTEM FOR GENERAL EMPLOYEES BY AMENDING SECTION 8.01, ENTITLED "INVESTMENTS" TO CONFORM TO THE AMENDED RELATED SPECIAL ACTS APPROVED BY REFERENDUM NOVEMBER 2, 1999, AUTHORIZING THE PENSION BOARD TO EXERCISE INDEPENDENT JUDGMENT IN ALLOCATING AND INVESTING FUNDS; PROVIDING FOR A REPEALER, SEVERABILITY, RETROACTIVITY AND AN EFFECTIVE DATE. WHEREAS, certain provisions of Ordinance No. 1901 which created the General Employees Pension System ("System") are in need of amendment to conform to changes to the Related Special Acts of the City of Miami Beach that were approved through referendum on November 2, 1999; and WHEREAS, the amendments set forth herein were recommended by the Board of Trustees of the Retirement System for General Employee4 of the City of Miami Beach. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. AMENDMENT OF SECTION 8.01. That Section 8.01 of Article 8, entitled "Definitions" of the City of Miami Beach Ordinance No. 1901 is hereby amended as follows: 8.01 Investments pension and rctircmcnt paymcnts, shall be invcstcd in the following sccuritics. (a) Bonds, notes, securities or othcr evidences of indebtedness which arc the • ; • .. the government is pledged. (b) Loans, insured or guaranteed as to principal and intcrcst by thc Government or guaranty. any Statc of thc Unitcd Statcs or of thc District of Columbia, which arc the direct obligation of - , - - , -5 -:, - • : - . . : : .. • - - : .• - - -, ; =; ' ,-- - - . .:: . , , . -, - - - - - - - - - - - '- - - - - - ' - - - - - - - -- - '- - - - - the Unitcd States. (c) Dividcnd-paying stocks, common or preferred, of any corporation created invcstcd shall at no time exceed fifty per ccntum (50) of the total funds invcstcd. (Ord. No. 90- 2686, §2.) (0 Stocks, common or preferred, of any corporation not created and existing , - ; - - - , .- : - - . - -: . - -, : . • - . -, I : . ; -; : •.- .- investment in such stocks excecd five per ccntum (5%) of the total equities. (Ord. No. 90-2686, §20 (g) Non-dividcnd-paying stocks, common or preferred, of any corporation morc than twenty per centum (20%) of the total cquity portfolio shall be so invcsted. (Ord. NO. 90-2686, §2.) Statcs. (Ord. No. 90-2686, §2.) (I) Shares or savings accounts of federal savings and loan associations, to the - - . , - -; u . ; . - - . ; , - - - . -- , . ; - - my . - -,-- - - ; - - • - • -; Statcs. (Ord. No. 90-2686, §2.) The assets of the System, in excess of the amount required to meet current operations or pension and retirement payments. shall be invested in accordance with the following paragraph. The trustees shall, in acquiring, investing, reinvesting. exchanging, retaining. selling and managing property for the benefit of the System. exercise the judgment and care under the circumstances then prevailing, which persons of prudence. discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. Within the limitations of the foregoing standard, a trustee is authorized to acquire and retain every kind of property, real, personal or mixed, and every kind of investment specifically including, but not by way of limitation, bonds, debentures and other corporate obligations, and stocks, preferred or common, which persons of prudence, discretion and intelligence acquire or retain for their own account and, within the limitations of the foregoing standard, a trustee may retain property acquired. without limitation as to time and without regard to its suitability for original purchase. SECTION 2. REPEALER. All Ordinances or parts of Ordinances in conflict herewith shall be and the same are hereby repealed. SECTION 3. SEVERABILITY. If any section, subsection, clause or phrase of this Ordinance 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 this Ordinance. SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect on the 17th day of June , 2000. PASSED and ADOPTED this 7th day of June , 2000. AYOR ATTEST: Itudr ate, CITY CLERK APPROVED AS TO FORM&LANGUAGE 1st reading 5/24/00 &FOR EXECUTION 2nd reading 6/7/00 44. 11L City Attor Date COG LAL:MG:MA:amh F:\HUMA\LABORREL\AMH\COMMEMO\ORDPRUD.WPD RESOLUTION NO. 99-23246 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA GRANTING CONCEPTUAL APPROVAL OF THE PLACEMENT OF A QUESTION ON THE CITY OF MIAMI BEACH'S NOVEMBER 2, 1999 SPECIAL ELECTION BALLOT AMENDING ARTICLE IX OF THE CITY OF MIAMI BEACH'S RELATED SPECIAL ACTS CONCERNING "PENSION SYSTEM FOR DISABILITY AND RETIREMENT OF MEMBERS OF POLICE AND FIRE DEPARTMENTS"BY MERGING THEREIN PROVISIONS OF MIAMI BEACH CITY CODE CHAPTER 78, ARTICLE IV THEREOF ENTITLED "POLICE OFFICERS AND FIREFIGHTERS SUPPLEMENTAL PENSION", DELETING OBSOLETE LANGUAGE, DELETING RESTRICTIONS CONCERNING PENSION BOARD INVESTMENT/ALLOCATION AND SUBSTITUTING THEREFOR THE "PRUDENT PERSON RULE" TO GOVERN ALL PLAN INVESTMENTS, ESTABLISHING A DEFERRED RETIREMENT OPTION PLAN,AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS,on November 2, 1999 a general election is scheduled to be held in the City of Miami Beach; and WHEREAS,the Mayor and City Commission hereby conceptually approve placement of a measure on the November 2, 1999 ballot amending Article IX of the City of Miami Beach's Related Special Acts concerning "Pension System for Disability and Retirement of Members of Police and Fire Departments" by merging therein provisions of Miami Beach City Code Chapter 78, Article IV thereof entitled "Police Officers and Firefighters Supplemental Pension", deleting obsolete language, deleting restrictions concerning Pension Board investment/allocation and substituting therefor the "Prudent Person Rule" to govern all Plan investments, establishing a deferred retirement option plan, and providing for an effective date; and WHEREAS, the specific text detailing the proposed amendments will be presented to the City Commission concurrent with its consideration on July 21, 1999 of the Resolution calling for the special election on this matter. ATTACHMENT A • NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA that it hereby grants conceptual approval of the placement of a question on the City of Miami Beach's November 2, 1999 special election ballot amending Article IX of the City of Miami Beach's Related Special Acts concerning "Pension System for Disability and Retirement of Members of Police and Fire Departments" by merging therein provisions of Miami Beach City Code Chapter 78, Article IV thereof entitled "Police Officers and Firefighters Supplemental Pension", deleting obsolete language, deleting restrictions concerning Pension Board investment/allocation and substituting therefor the "Prudent Person Rule" to govern all Plan investments, establishing a deferred retirement option plan, and providing for an effective date,with specific text detailing the proposed amendments to be presented to the City Commission concurrent with its consideration on July 21, 1999 of the Resolution calling for the special election on this matter. PASSED and ADOPTED this 21st day of July , 1999. MAYOR ATTEST: Ciat“'k jOied CITY CLE (Requested by Commissioner David Dermer) f:\atto\SaI I\she ii ares-ord.cm\art-i x.'99 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION - 9 (-19' *1•• •r - V- Date 2 OFFICE OF THE CITY ATTORNEY 6414, e;i0Awni• (Wald F L 0 R i O A 479k.)1. reef MURRAY H. DUBBIN Telephone: (305) 673-7470 City Attorney `" Telecopy: (305) 673-7002 COMMISSION MEMORANDUM NO. 5 1 -99 DATE: JULY 7, 1999 TO: MAYOR NEISEN KASDIN, MEMBERS OF THE CITY COMMISSION FROM: MURRAY H. DUBBIN CITY ATTORNEY SUBJECT: AMENDING MIAMI BEACH CITY CODE ARTICLE IX OF THE CITY OF MIAMI BEACH'S RELATED SPECIAL ACTS CONCERNING "PENSION SYSTEM FOR DISABILITY AND RETIREMENT OF MEMBERS OF POLICE AND FIRE DEPARTMENTS". Pursuant to the request of Commissioner David Dermer, the attached resolution has been prepared regarding conceptual approval of placement of a measure on the City of Miami Beach's November 2, 1999 special election ballot amending Article IX of the City of Miami Beach's Related Special Acts concerning "Pension System for Disability and Retirement of Members of Police and Fire Departments" by merging therein provisions of Miami Beach City Code Chapter 78,Article IV thereof entitled"Police Officers and Firefighters Supplemental Pension", deleting obsolete language, deleting restrictions concerning Pension Board investment/allocation and substituting therefor the "Prudent Person Rule" to govern all Plan investments, establishing a deferred retirement option plan, and providing for an effective date. The attached resolution is in proper form and ready for City Commission review. f:\atto\Sal l\she i l a\res-o rd.c mart-i x99.c m Agenda Item T1 Date 1700 Convention Center Drive— Fourth Floor— Miami Beach, Florida 33139 GABRIEL, ROEDER, SMITH & COMPANY Consultants&Actuaries 301 East Las Olas Blvd.•Suite 200•Ft.Lauderdale,FL 33301 •954-527-1616•FAX 954-525-0083 April 24, 2000 Ms. Margaret Arculeo Pension Administrator Miami Beach General Employees Pension Board 1700 Convention Center Drive Miami Beach, Florida 33139 Re: General Employees Retirement System Dear Margaret: We have reviewed the proposed ordinance implementing the "prudent person" standard for fiduciary responsibility. In our opinion, enactment of this ordinance would have no actuarial impact on the System. We welcome your questions and comments. Sincerely yours, • Af; --c/-("") -12-QAdt--%--'E J. Stephen Palmquist JSP/or 1 g © E OW fip APR 2 5 2000 i; .. JLC ATTACHMENT B RESOLUTION NO. 99-23362 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE CERTIFICATES OF THE RESULTS OF THE NOVEMBER 2, 1999 SPECIAL ELECTION FOR THE CITY OF MIAMI BEACH, ADJOURNING THE CITY OF MIAMI BEACH CANVASSING BOARD FOR THE NOVEMBER 2, 1999 SPECIAL ELECTION AND DECLARING RESULTS THEREOF. WHEREAS, on September 22, 1999, City Manager designee Mayra Diaz Buttacavoli, Commissioner Nancy Liebman and Commissioner Jose Smith were designated by the Miami Beach City Commission to act as its Canvassing Board representatives regarding the conduct of the November 2, 1999 Special Election for the City of Miami Beach; and WHEREAS, City Manager designee Mayra Diaz Buttacavoli, Commissioner Nancy Liebman and Commissioner Jose Smith acted as the commission representatives/Canvassing Board for the November 2, 1999 Special Election; and WHEREAS, the Certification of the results of the City of Miami Beach Special Election have been received and are attached hereto as Composite Exhibit "A" and are incorporated herein; and WHEREAS, said Certification reflects that: Question "A" as set forth below was approved by the electorate of the City of Miami Beach'; Question "B" as set forth below was approved by the electorate of the City of Miami Beach; Question "C" as set forth below was approved by the electorate of the City of Miami Beach; Question "D" as set forth below was approved by the electorate of the City of Miami Beach; Question "E" as set forth below was approved by the electorate of the City of Miami Beach; Question "F" as set forth below was rejected by the electorate of the City of Miami Beach; Question "G" as set forth below was approved by the electorate of the City of Miami Beach; and Question "H" as set forth below was approved by the electorate of the City of Miami Beach. ' The eight ballot questions have been lettered "A"; "B"; "C"; "D"; "E"; "F"; "G"; and "H" for ease of reference herein only and were not so lettered on the ballot. ATTACHMENT C Question "H": GENERAL EMPLOYEES' PENSION BOARD: DELETING SPECIFIC nv • •. : t I : . • r r�ri. r.$ ; • PRUDENT PERSON STANDARD - SHALL ARTICLE VI, SECTION 31 OF THE RELATED SPECIAL ACTS OF THE CITY OF MIAMI BEACH, FLORIDA, BE AMENDED TO DELETE SPECIFIC RESTRICTIONS CONCERNING PENSION BOARD INVESTMENT AND ALLOCATION, AND TO SUBSTITUTE THEREFOR LANGUAGE AUTHORIZING THE PENSION BOARD TO EXERCISE (IN A PRUDENT MANNER) INDEPENDENT JUDGMENT IN ALLOCATING AND INVESTING FUNDS? 3.964 or 54.83% YES 3.266 or 45.17% NO BE IT FURTHER RESOLVED AND DETERMINED that Question"A" was approved, Question "B" was approved, Question "C" was approved, Question"D" was approved, Question "E" was approved,Question"F" was rejected,Question"G" was approved,and Question"H" was approved: PASSED and ADOPTED this 3rd day of November, 1999. ATTEST: MAYOR i[lakkAai 19alt atjA CITY CLERK 1KOVcw APPROVED AS TO A:ViESO\BRESULTS N99 FORM&LANGUAGE &FOR EXECUTION 42 t k/3/99 Ply Attorney Dese6 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH,FLORIDA 33139 http:\\ci.m iam i-beach.fl.us COMMISSION MEMORANDUM NO. (07 3-O.O TO: Mayor Nelsen O.Kasdin and DATE:June 7,2000 • Members of the City Commission FROM: Lawrence A.Levy ..rlebe City Manag r 4. SECOND READING PUBLIC HEARING SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,AMENDING ORDINANCE NO. 1901 WHICH CREATED THE RETIREMENT SYSTEM FOR GENERAL EMPLOYEES BY AMENDING SECTION 8.01, ENTITLED "INVESTMENTS" TO CONFORM TO THE AMENDED RELATED SPECIAL ACTS APPROVED BY REFERENDUM NOVEMBER 2, 1999, AUTHORIZING THE PENSION BOARD TO EXERCISE INDEPENDENT JUDGMENT IN ALLOCATING AND INVESTING FUNDS; PROVIDING FOR A REPEALER, SEVERABILITY, RETROACTIVITY AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Adopt the Ordinance. ANALYSIS On July 21, 1999, the City Commission adopted Resolution#99-23246 ("Attachment A"), which granted conceptual approval of the placement of a measure on the November 2, 1999 ballot amending the Related Special Acts of the Charter. This amendment would authorize the Pension Board to exercise (in a prudent manner) independent judgment in allocating and investing pension funds and would have no fiscal impact on the Plan(as indicated in"Attachment B"). Placed on the ballot as Question "H", the item was approved. The certification of the results of the Special Election was adopted in Resolution #99-23362, the relevant portion of which is included as "Attachment C." At the City Commission meeting of May 24,2000,the Ordinance was approved on first reading with amendments to ensure gender neutrality. The Administration recommends that the Mayor and Commission adopt the Ordinance to properly incorporate this authority into the Pension Ordinance. 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