99-23279 RESO
RESOLUTION NO.
99-23279
A RESOLUTION CALLING A SPECIAL ELECTION
TO BE HELD ON NOVEMBER 2, 1999 FOR THE
PURPOSE OF SUBMITTING TO THE ELECTORATE
OF THE CITY OF MIAMI BEACH FOR THEIR
APPROVAL OR DISAPPROVAL, AN AMENDMENT
TO ARTICLE VI, SECTION 31 OF THE
RELATED SPECIAL ACTS OF THE CITY OF
MIAMI BEACH, FLORIDA, TO DELETE
SPECIFIC RESTRICTIONS CONCERNING
PENSION BOARD INVESTMENT/ALLOCATION,
AND TO SUBSTITUTE THEREFOR LANGUAGE
AUTHORIZING THE PENSION BOARD TO
EXERCISE (IN A PRUDENT MANNER)
INDEPENDENT JUDGMENT IN ALLOCATING AND
INVESTING FUNDS.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI
BEACH:
SECTION 1:
In accordance with the 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 November 2, 1999, for the purpose of submitting to the
electorate the question as set forth hereinafter.
SECTION 2:
The appropriate and proper Miami-Dade County election
officials shall conduct the said Special Election hereby called,
with Dade County's certification of the results of said Special
Election being accepted by the City Commission.
The official
1
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 on the night of said Special Election.
SECTION 3:
Said voting precincts in the City of said Special Election
shall be as established by the proper and appropriate 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 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,
City Hall, 1700 Convention Center Drive, First Floor, Miami Beach,
Florida 33139, each and every day until October 4, 1999, 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
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Elections Office. All registration forms must be received by the
Miami-Dade County Elections Office and clocked in no later than
October 4, 1999, at 5:00 p.m. in order for a person to vote in this
Special Election. All questions concerning voter registration
should be directed to the 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:
Copies of the proposed amendment to the Miami Beach Ci ty
Related Special Acts shall be made available to the electors at the
office of the City Clerk from 8:30 a.m. to 5:00 p.m. each day,
Saturdays, Sundays and holidays excepted, not later than thirty
days prior to the date of said election.
SECTION 6:
Not less than thirty days' notice of said Special Election
shall be given by publication in a newspaper of general circulation
in Miami Beach, Dade County, Florida. Such publication shall be
made at least once each week for four consecutive weeks next
preceding said Special Election.
3
SECTION 7:
The notice of election shall be substantially in the following
form:
CITY OF MIAMI BEACH, FLORIDA
NOTICE OF SPECIAL ELECTION
NOTICE IS HEREBY GIVEN THAT A SPECIAL ELECTION
HAS BEEN CALLED BY THE 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 2ND DAY OF NOVEMBER, 1999, AT WHICH TIME
THERE SHALL BE SUBMITTED TO THE DULY REGIS-
TERED AND QUALIFIED VOTERS OF THE CITY OF
MIAMI BEACH THE FOLLOWING QUESTION:
GENERAL EMPLOYEES' PENSION BOARD: DELETING
SPECIFIC INVESTMENT/ALLOCATION RESTRICTIONS
AND SUBSTITUTING THEREFOR 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 INVEST-
MENT AND ALLOCATION, 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:
The official ballot to be used in the Special Election to be
held on November 2, 1999, hereby called, shall be in substantially
the following form:
4
OFFICIAL BALLOT
CITY OF MIAMI BEACH, FLORIDA
SPECIAL ELECTION, NOVEMBER 2, 1999
GENERAL EMPLOYEES' PENSION BOARD: DELETING
SPECIFIC INVESTMENT/ALLOCATION RESTRICTIONS
AND SUBSTITUTING THEREFOR 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 INVEST-
MENT AND ALLOCATION, 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 9:
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 10:
That the City of Miami Beach shall pay all of the expenses for
conducting this Special Election and will pay to Dade County or
directly to all persons or firms upon receipt of invoice or
statement approved by the Supervisor of Elections of Dade County,
Florida.
5
SECTION 11:
This Resolution shall be effective immediately upon its
passage.
PASSED AND ADOPTED this 21st day of
July
, 1999.
f1J4
MAYOR
ATTEST:
~4kJ f~(~~
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~.~~
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PROPOSED RELATED SPECiAL ACTS AMENDMENT
NOVEMBER 2. 1999 SPECiAL ELECTiON
Text of Ouestion No.
Article VI, Section 31 of the Related Special Acts of the City
of Miami Beach, Florida, is hereby amended to read as follows:
All moncy~ paid into any pcn~ion or
rctircment 6ystcm crcatcd by thi~ Ac~, except
such moncys aB arc neccs~ary to mect currcnt
opcrating or pcnsion and rctircmcnt payments,
shall bc ili,,"cBtcd in thc follmdng.
Donds, notcs, securities or othcr cvi
dcnccs of indcbtedncss .....hich arc thc dircct
obligation of thc go".rernment of thc Unitcd
Ctatcs and for uhich thc full faith and credit
of the g07CrHffiCnt is plcdged.
Loans, insured or guarantecd as to
principal and intcrcst b~f the gO"Jcrnmcnt of
thc Unitcd Otatc3 or by any agency or instru
mcntality thcrcof, to the cxtcnt of such
inBurancc or guaranty.
Donds, notes and othcr ~ecurities of any
state, county or incorporatcd city in any
statc of thc Ufiited Otatcs or the District of
Columbia, which arc thc dircct obligation of
such ~tate, county or city and for pa}~cnt of
which said go?crnmcntal body has the lawful
authority to IC-Tf taxcs or ma]cc aBscssment3.
Donds, notcs or othcr cvidcnccs of
indcbtcdneos which arc payable from re7cnuc3
of any structure or improvcment owned by any
atatc, county or incorporated city uithin the
United Ctates.
Di vidcnd paying 3tockt:], cOftlffton or prc
ferrcd, of an~i corporation creatcd and
cxisting undcr thc la\13 of the United Otate3
or of any statc, pro~idcd that the amount so
in7c3ted shall at no time excecd fifty pcrcent
of thc total funds in-JcBtcd. OtockB, cofftfftOn
or prcfcrred, of any corporation not created
374
and exit3t.in~ under the lalm of the United
Gt.atet3, or of any t3tate, t3hall at no tiffiC
exceed five percent of the total equitics. No
more than t\lent.y percent of the total equity
portfolio may be invested in non dividend
paying stocks, -n'"hich are subj ect to the
guideline~ 3et by ordinance.
Donds, note3 or other interc3t bearing
obligations of any t30lvent corporat.ion
organized under the la",m of the United Gt.at.es,
or any t3t.ate, territ.ory or post3et3~ion of the
United States.
Ghares or savings accounts of federal
~a7ingl3 and loan associations, to the extent
tha t they are insured by an . agency or an
in~truffientality of the government of the
United Gt.ates.
All moneys paid into any pension or
retirement system created by this Act. except
such moneys as are necessa~ to meet current
operating or pension and retirement payments.
shall be invested by the pension board. In
connection therewith. the pension board shall.
in ac~iring. investing. reinvesting. exchang-
ing. retaining. selling and managing property
for the benefit of any pension or retirement
system created by this Act. exercise the judg-
ment and care under the circumstances then
prevailing. which persons of prudence. discre-
tion and intelligence exercise in the manage-
ment of their own affairs. not in regard to
speculation but in regard to the pe:nnanent
disposition of their funds. considering the
probable income as well as the probable safety
of their capital. Within the limitations of
the foregoing standard. the pension board is
authorized to ac~ire and retain eve~ 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 pru-
dence. discretion and intelligence ac~ire or
retain for their own account and. within the
375
limitations of the foregoing- standard. the
pension board may retain property acquired.
without limitation as to time and without
regard to its suitability for original pur-
chase.
The city. commission is authorized, by
ordinance, to increase the pension benefits to
members of the city pension fund for employees
of the City of Miami Beach.
376
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tt305 375 1038
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IlIAHI-DADE ELEC2
L:IST OF POLLING PLACBS
cn"X' OF KJ:AIIX :BEACH
PCT. LOC!A'J!ION ADDDSS
........................................................................
011
013
01'
015
018
019
021
022
023
024
025
026
027
028
029
0]0
031
BISCAtHE ELmmRTARY SCHOOL
800 - 77 ST
NORm SHORB COMKONITY CDT1'BR
7250 COLLDlS AVE
KORTH SHORB RRc::RD.T:I:OR Cl!:NTBR
501 - 72 ST
PADUm,y PAlUt
~ 0 0 :;aA:l:RWAY DR
NORMAJIJ)Y SHODS GOI.F COURSB
2401 D:r.AaIlI"1'Z DR
NORDHDY ISLB HONl:CIPAIa POOL
1765 - 71 ST
NORTH SHORB RBCIBAT:tOH cmr.nm
501 - 72 ST
SHANE WM'BRSPORTS CBNTJm
6500 DmIAN CREEK DR
NIAKI BJmCH FIRE STATION 13
5303 COLLIN'S AVE
NAtJ"1'J:LUS Jam:)LK SCHOOL
4301 NORTH XICH:IGAN' AVE
HJ:AKI BEACH PmB S"l'ATIOH *3
5303 COLL:tNS AVlil
~1Bt SDBB"X CCIIKtJNI:TY CBln'BR
2100 WASKmGTOlf AVE
OCBAH GDBDB HO'1'EL
3651 COLLDlS AVE
'l'EMPLB BftE SHOLOM
4144 CHASE AVE
ST. PADIClt CATHOLIC CJlUltCH
3885 KSRIDIAN AVE
HAYSHORE GaLl' COaSE
2301 ALTON RD
J:W:)B BOtrI.1lV'Am) Jl':tu S'rAIJ!:tcm 12
2]00 PINRTREE DR
1
02/22/99 CJ
03/17/99 13: U
tt305 375 1038
)[LUlI-DADE ELEC2
~
LIST OF POLLDTG PLACES
ern OF IIIAKI BBACH
i1001/002
P~. LOCA-.r'J:OH ADDRBSS
..........................**...**......*...........................*****
032 M'T~VT BEACK PtJBLI:C I..J:BRARY
033 BARCLAY PLAZA HOTEL " APAR~
034 KI:AKI: BEACK GARDBN' CENTER
035 2111i: S-rRDT C01lll1DttTY aJD1TER
036 Fta.UaHGO PAlUt 'rEBN' C!BH'1'BR
037 JaAm BDCH cJ:n DLL
038 HIAHI BD.CK ROD &: REEL CL'D'B
039 ST FRANCIS DE SALES c:scmCB
040 ST PRANCI:S DB SALBS CBtJRCB
041 IaAKX BDr'H ;nRE STATI:OH #1
042 H3:AIa BBACK SZHJ:OR cmrrBR
043 IaAHJ: BBACEr POLJ:CB DEPJUl'rMEN"l'
044 OCBAR PRORT AtmI'r01U1JH
046 SOtlTE SHORE COJIMtlNITY CTR
048 SOtJ'1'H POINTE PARK
02/22/99 CJ
378
2100 COLLDlS AVE
1940 PAlUt AVE
2000 CONVENTION ~T.rll{ Dn
2100 WASHiNGTON A.VE
1000 - 12 ST
1700 CONVEN'r:ION CJ:NTEX DR
208 SOUT.B: HIBJ:SCl1S DR
621 ALTON RD
621 ALTON RD
1051 JEFFERSON AVE
610 BSPUlOLA WAY
1100 WASEEmG'l'ON AVE
100:1. OC!iAN DR
833 - 6 9'1'
1 WASHINGTON AVE
2
CITY OF MIAMI BEACH
CITY HAll 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\cI.mlaml-beach.n.ua
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. 57 y-=.99
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: July 21, 1999
Sergio Rodriguez
City Manager
-
A RESOLU ON CALLING A SPECIAL ELECTION TO BE
HELD ON NOVEMBER 2,1999 FOR THE PURPOSE OF
SUBMITTING TO THE ELECTORATE OF THE CITY OF
MIAMI BEACH FOR THEm APPROVAL OR
DISAPPROVAL, AN AMENDMENT TO ARTICLE VI,
SECTION 31 OF THE RELATED SPECIAL ACTS OF THE
CITY OF MIAMI BEACH, FLORIDA, TO DELETE
SPECIFIC RESTRICTIONS CONCERNING PENSION
BOARD INVESTMENT/ALLOCA TION, AND TO
SUBSTITUTE THEREFOR LANGUAGE AUmORIZING THE
PENSION BOARD TO EXERCISE (IN A PRUDENT
MANNER) INDEPENDENT JUDGMENT IN ALLOCATING
AND INVESTING FUNDS.
'"
ADMINISTRATIVE RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The Retirement System for General Employees of the City of Miami Beach contains very specific
restrictions on investments. For example, no more than fifty percent of total funds may be invested
in stocks. In addition, at least eighty percent of all stocks must be dividend paying. These restrictions
make it difficult for the Pension Board to obtain maximum returns. The consultant for the Fund,
Dom, Helliesen & Cottle, has conducted an asset and liability study (Exhibit I). The study discovered
that the current asset mix of fifty percent equity and fifty percent fixed income has an expected rate
of return that is lower than the actuarial assumption rate of 8.5%. A conservative asset mix to meet
the 8.5% would be sixty percent equity and forty percent fixed income.
This Resolution would amend the City of Miami Beach Related Special Acts to provide the more
enlightened "Prudent Person Standard". This is a common-law standard applicable to the investment
of trust funds which states that: "All that can be required ofa trustee in the investment of trust funds
is that he conduct himself faithfully and exercise sound discretion. He is to observe how men of
prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in
AGENDA ITEM R 1 c..
363 DATE 7-21-qg
Page 2
regard to the permanent disposition of their funds, considering the probable income as well as the
probable safety of the capital to be invested." International Foundation of Employee Benefits
Trustees Handbook. In Florida the standard is codified in Section 518.11 of the Florida Statutes, a
copy of which is attached (Exhibit II). This standard already governs the Retirement System for
Unclassified Employees and Elected Officials of the City of Miami Beach and the City Supplemental
Pension Fund for Firefighters and Police Officers in the City of Miami Beach. The amendment has
no fiscal impact on the plan.
CONCLUSION
This amendment is recommended by the Board of Trustees as necessary for investment flexibility to
meet changing financial circumstances.
M~-J rAh.6li
SR:l-wf3:ma,u. VI V'V1
364