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HomeMy WebLinkAboutO-2013-008 P&F Pension Plan Amendment for Investments ORDINANCE NO. 2013-008 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING THE CITY OF DANIA BEACH CODE OF ORDINANCES RELATING TO THE POLICE AND FIREFIGHTERS RETIREMENT SYSTEM TO PROVIDE FOR A VARIANCE IN THE INVESTMENT PROCEDURES IN ACCORDANCE WITH SECTIONS 175.071(1)(b)(4) AND 185.06(1)(b)(4) FLORIDA STATUTES; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR A REPEALER; AND FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The Board of Trustees of the City of Dania Beach Police and Firefighters' Retirement System, at its meeting of May 20, 2013, received recommendations from its Investment Consultant and Investment Advisor that the Retirement System be amended to permit Y the investment of no more than 25% of the fixed income portfolio of the System in corporate bonds bearing a rating of Baa by the Moody's Rating Agency, or a rating of BBB by the Standard&Poor's or Fitch Rating Agencies; and WHEREAS, The Board of Trustees, in accordance with Sections 175.071(l)(b)(4) and 185.06(l)(b)(4) Florida Statutes, has requested that the investment procedures of the Retirement System be amended,pursuant to said recommendations; and WHEREAS, Sections 175.071(l)(b)(4) and 185.06(l)(b)(4) Florida Statutes, provide that any such amendment may only be made by ordinance; and WHEREAS, the City Commission has received, reviewed and considered an actuarial impact statement, describing the actual impact of the amendments provided for in this Ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH,FLORIDA: Section 1. That the foregoing WHEREAS clauses are ratified and confirmed as being true and correct and they are made a specific part of and are incorporated into this Ordinance by this reference. Section 2. That Sec. 18-47(6)(b) of the City of Dania Beach Code of Ordinances is amended by adding the underlined language as follows: Sec. 18-47. "Finances and fund management; establishment and operation of fund." (6) The Board of Trustees shall have the following investment powers and authority: (a) The Board of Trustees shall be vested with full legal title to said fund; subject however, and in any event to the authority and power of the City Commission to amend or terminate the trust, provided that no amendment or fund , termination shall ever result in the use of any assets of the fund, except for the payment of regular expenses and benefits under this system. All contributions from time to time aid into the fund and the income of them without distinction P > between principal and income, shall be held and administered by the Board or its agent in the fund, and the Board shall not be required to segregate or invest separately any portion of the fund. (b) Within the restrictions and requirements contained in F.S. §175.071 and §185.06, the fund may be invested and reinvested in such securities or property, real or personal, wherever situated and of whatever kind, as shall be approved by the Board of Trustees, including but not limited to stocks, common or preferred, bonds, and other evidences of indebtedness or ownership. Assets of the fund may be invested in corporate bonds bearing a rating of Baa by the Moody's Rating Agency, or a rating of BBB by the S&P or Fitch Rating Agencies; provided, however, that at no time shall the total value of the assets invested in such bonds exceed twen -five percent (25%) of the total value of the fixed income portfolio of the fund. The Board shall identify and publicly report any direct or indirect holdings it may have in any scrutinized company, as defined in F.S. §215.473, and proceed to sell, redeem, divest, or withdraw all publicly traded securities it may have in such company beginning January 1, 2010. The divestiture of any such security must be completed by March 1, 2010. For the purposes of effecting compliance with F.S. §215.473, the pension fund shall designate terror-free plans that allocate their funds among securities not subject to divestiture. No person may bring any civil, criminal, or administrative action against the Board of Trustees or any employee, officer, director or advisor of the system based upon the divestiture of any security pursuant to this section. 2 ORDINANCE#2013-008 Section 3. That if any clause, section, sentence or phrase of this Ordinance is for any reason held unconstitutional or invalid by a court of competent jurisdiction,the holding of any of them shall not affect the validity of any remaining portions of this Ordinance. Section 4. That all ordinances or parts of ordinances, resolutions or parts of resolutions in conflict with this Ordinance, are repealed to the extent of such conflict. Section 5. That this Ordinance shall be in full force and take effect immediately upon its passage and adoption. PASSED on first reading on August 13, 2013. PASSED AND ADOPTED on second reading on August 27, 013. ATTEST: U K.J LOUISE STILSON, CMC WALTER B. DUKE, III CITY CLERK MAYOR -S FIST STY APPROVED AS TO FqRM CORRECTNESS 1/17 TH AS J. S R CITY ATT RNEY 3 ORDINANCE#2013-008