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Res 30-09RESOLUTION NO. 3tI-09 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY Bk:ACH, FLORIDA, URGING THE BOARDS OF THE CITY'S PENSION FUNDS TO OPERATE CONSISTENTLY WITH THE "PROTECTING FLORIDA'S INVESTMENT ACT". WHEREAS, the City of Delray Beach has determined that it would be in the best interests of the City to ensure that equity investments made by the various pension funds covering City employees are made in a responsible and prudent manner, and WHEREAS, the Protecting Florida's Investment Act recognizes that there are financial risks associated with investments in publicly traded companies that have business activities in and ties to Iran's petroleum-energy sector; and WHEREAS, the Act also recognizes that Iran has failed to suspend its uranium-enrichment activities and that the United Nations Security Council and the United States have imposed sanctions against Iran; and WHEREAS, since 1993, the United States Secretary of State has determined that Sudan is a country whose government has repeatedly provided support far acts of terrorism and as a result, the United States has restricted assistance, defense exports, defense sales, financial transactions, and various other transactions with the Government of Sudan; and WHEREAS, the Federal Government has imposed sanctions against the Government of Sudan since 1997, and these sanctions are monitored thxough the United States Treasury Department's Office of Foreign Assets Control {OFAC}. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS; Section 1. That the City Commission urges the Boards of the City's Pension Funds to eliminate investments in or related to "scrutinized companies" as defined by the Protecting Florida's Investment Act which are associated with Iran's petroleum jenergy sector or Sudan, and that these investments should be replaced with substitute investments that would not cause any adverse effects to the pension funds. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED in regular session on this the ~" day of ~~~ , 2009. ~bo/1. MAYOR ATTEST: ~. ~~ Ciry Clerk 2 Res No. 30-09 Page 1 of 1 MEMQI- AIVDUM TO: Mayor and City Commissioners FROM: David T. Harden, City Manager DATE: July 7, 2009 SUBJECT: AGENDA ITEM 9.0. -REGULAR COMMISSION MEETING OF JULY 7.2009 RESOLUTION NO.30-09 ITEM BEFQRE COMMISSIQN The item before Commission is consideration of Resolution No. 30-09 urging the City's Pension Funds to operate consistent with the "Protecting Florida's Investment Act". BACKGROUND The attached Resolution No. 30-09 urges the City's pension boards to select investments for the pension funds consistent with the intent of the State of Florida's Protecting Florida's Investment Act. This resolution is based upon a resolution passed earlier this year by Baca Raton. Also, the Florida legislature enacted a bill this year that requires all police and firefighter pension plans that participate in Chapters 17S and 185, Florida Statutes, to eliminate publicly traded investments in "scrutinized companies" by September 30, 2010 {See Gh. 2009-97, Fla. Stat.). The Delray Beach PolicelFire Pension Plan is a Chapter 1?51185 plan, and is subject to the 2009 legislation. However, the legislation does not apply to non-police and fire pension plans, such as the City's retirement plan for general employees. RECOMMENDATION Staff recommends approval of Resolution No. 30-49. http:l/miweb001 /AgendaslBluesheet.aspx?ItemID=2369&MeetingID=211 7/$/2009 RESOLUTION N0.30-09 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, URGING THE BOARDS OF THE CITY'S PENSION FUNDS TO OPERATE CONSISTENTLY WITH THE "PROT"ECTING FLORIDA'S INVESTMENT ACT". WHEREAS, the City of Delray Beach has determined that it would be in the best interests of the City to ensure that equity investments made by the various pension funds covering City employees are made in a responsible and prudent manner; and WHERF_,AS, the Protecting Florida's Investment Act recognizes that there are financial risks associated with investments in publicly traded companies that have business activities in and ties to Iran's petroleum-energy sector; and WHEREAS, the Act also recognizes that Iran has failed to suspend its uranium-enrichment activities and that the United Nations Security Council and the United States have imposed sanctions against Iran; and WHEREAS, since 1993, the United States Secretary of State has determined that Sudan is a country whose government has repeatedly provided support for acts of terrorism and as a result, the United States has restricted assistance, defense exports, defense sates, financial transactions, and various other transactions with the Government of Sudan; and WHEREAS, the Federal Government has imposed sanctions against the Government of Sudan since 1993, and these sanctions are moniti~red through the United States Treasury Department's Office of Foreign Assets Control (OFAC). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COIviMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City Commission urges the Boards of the City's Pension Funds to elirninate investments in or related to "scrutinized companies" as defined by the Protecting Florida's Investment Act which are associated with Iran's petroleumf energy sector or Sudan, and that these investments should be replaced with substitute investments that would not cause any adverse effects to the pension funds. ection ~. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED in regular session on this the day of , 20019. AT`T'EST: MAYOR City Clerk