Ord 07-07
ORDINANCE NO. 7-07
AN ORDINANCE OF THE CI1Y COMMISSION OF lliE
CI1Y OF DELRA Y BEACH, FLORIDA, AMENDING
CHAPTER 33, "POLICE AND FIRE DEPARTMENTS",
SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CI1Y OF DELRA Y BEACH,
FLORIDA, BY AMENDING SECTION 33.66, "FINANCES
AND FUND MANAGEMENT", REVISING INVESTMENT
PROVISIONS; PROVIDING A GENERAL REPEALER
CLAUSE; PROVIDING A SAVINGS CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY THE CI1Y COMMISSION OF
THE CI1Y OF DELRA Y BEACH AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire Departments", subheading, "Pensions",
of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section
33.66 " FINANCES AND FUND MANAGEMENT", subsection (E), to read as follows:
Sec. 33.66. FINANCES AND FUND MANAGEMENT.
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(E) The Board of Trustees shall have the following investment powers and authority:
(1) The Board of Trustees shall be vested with full legal tide to the Fund; subject however and in
any event to the authority and power of the City Commission to amend or terminate this trust;
provided that no amendment or fund termination shall ever result in the use of any assets of this
Fund except for the payment of regular expenses and benefits under this system. All contributions
from time to time paid into the Fund, and the income thereof, without distinction 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.
(2) The Board and each trustee thereof is a fiduciary with respect to the Trust Fund. and shall
exercise investment authorit;y under this Section solely in the interest of plan members and
beneficiaries. for the exclusive purpose of providing benefits to members and their beneficiaries and
defraying the reasonable expenses of administering the plan. The Board shall exercise its investment
authority with the care. skill. prudence and cliligence under the circumstances then prevailing that a
prudent person in a like capacity and familiar with such matters would use in the conduct of an
enterprise with like character and like aims. The BOMd of Trustees may im est llrid reiw.'est the llssets
of the Trust Fund in bonds, stocks, or other evidences of iadebtedftess i3sued or gwtrllflt-eed by a
c011'oratton organized under the MtwS of the United States, any state, or organized territory of the
Uo::i.ted States or the Di3ttict of Columbia, or in foreign seet1:t'ities, in accordance 'W"ith the pro'nsiofls
of this Section.
m Notwithstanding any limitation provided in Chapter 175 or Chapter 185. Florida Statutes. or any
limitation or condition contained in Section 215.47. Florida Statutes. the Board of Trustees may
invest and reinvest pension fund assets in such securities. investment vehicles and proper1;y wherever
situated and of whatever kind. as the Board shall approve in the exercise of its fiduciary dut;y and
authorit;y. including but not limited to common or preferred stocks. bonds and other evidences of
indebtedness or ownership. In no event. however. shall more than ten (10) percent of the assets of
the fund. at cost. be invested in foreign securities: provided. if state law is amended to allow
investments in foreign securities of fifteen (15) or more percent of fund assets. the Board may invest
up to fifteen (15) percent of fund assets. at cost. in foreign securities. The Board shall exercilJe its
investmeat authority Wider t::hi3 Secttofl soldy ill the intcrest of plan members alid beneficiaries, for
the exdtIsive purpose of prO'.-idiftg benefits to members aad their beneficiaries and defntf.ng the
reasonable expeflses of administeriftg the plan. The Board shaR exercise its ifl-.'est:ment atlthority
with the CMe, skill., prudence and diligeftce Wider the cireumstances thea pfeva:ilffig that a prudeat
persoa in a lik-e capacity aad fam:iliM with sueh matters wowd use ifl the eOliooct of an eaterpr1se
with like chMacter and like aims.
(4) The Board shall adopt and periodically update a written investment policy in accordance with
F:& Section 112.661, Florida Statutes. All investments approved by the Board shall be in
accordance with the investment policy. The Board shall provide a copy of the investment policy
and any revisions thereto to the Cit;y Manager. in accordance with Section 112.661. Florida Statutes.
ifleorporattng the followtag rcqtJ:it:ements for specific iw.-estments:
(a) Ilr;estmeats in U.S. stock-s Mid boads mtlst be ill eorpoflltioas that Me listed on MiY one or
more of the recogftized natloMI stock exchaages or on the Nattoftal Ma:rket System of the
Ni\.SDf.:Q Stock Market, and, in the case of bOflds only, holds a ratffig in oac of the three (3)
highest classifications by a major mtiftg serviee.
<h") The Board of Trustces shaR aot iftvest more than five (5) perceat of Trust Ftmd assets in the
eommon or eapital stock of any oae issuffig company, lior shaR the aggregate ift-;cstftl.ent ift
eommoa or capital stock ift oae compaay exceed fi-;e (5) perccnt of the outstafldffig eommoft Of
capital stock of that eompaftY; aor shall the aggregate of the Ftmd's in.-cstmeflts in eommoft Of
capital stock using the market Vaft1e method exceed se-.'enty (7Q.) pereent of the Fuad's assets, as
me8;s~ed on thc last business day of each ~ter. The Board of Trustees shaR rebalaace the Ft1fl.d's
assets by the last business day of the foHCYW-1Rg fltlarter, UO::kss the Board determines that it would
aot be ecoaomicaHy fcasible because rehalaacing would elttl:3e aft eeonomic 103s, in which ease the
FtJftd's assets shall be rebalaneed as sooa as it is economieally feasible to do so.
(c) The BOMd ffiftY invest alid reinvest the assets of the FtJftd ift time or sa-Jiftgs aeeotJftts of a
natioaal baak, a State baRk iftsUfed by the Bank IasUfMiee FtJftd, or a sa-viflgs, buildffig, aad loan
assoeiiltton in31:lfecl by the Slt""i.ags J..3soeiiltioa Iastlftaee Ftlfld whieh i3 administered by the Federal
2
ORD. NO. 7-07
Dt:p6sit IasMaftee C6rporatiOft or a state or federal efl.artered eredit 1:1t1iOft 'W..ft03C share accounts
Me insured hy the National Credit Union ShMt: Ias1:lf'ance Fnnd.
(d) The Board may ttr;est \if' to tea (10) perceat of Ftllld assets, at cost, in foreigo. sect1:fities, aftd
may also iff.-est ift boftds isstled by the State of Israel.
(5) The Board shall provide a quarterly financial report to the Cit;y Manager no later than thir1;y days
following the end of each calendar quarter. which report shall include a summary reflecting the total
market value of the fund at the beginning and end of the quarter. total investment gains and losses
during the quarter. and a summary of the market value and investment gains and losses during the
quarter for each manager responsible for investing fund assets. The Board shall also provide a copy
of all reports from the Board's investment consultant to the Cit;y Manager within five days following
the Board's approval or review of such reports.
(Q-S) The Board may retain in cash or unproductive of income an amount of the Fund as it may
deem advisable, having regard for the cash requirements of the system.
a6) Neither the Board nor any person or entity shall be liable for the making, retention, or sale of
any investment or reinvestment made as herein provided, nor for any loss or diminishment of the
Fund, except that due to his own negligence, willful misconduct, or lack of good faith.
(a+) The Board may cause any investment in securities held by it to be Registered in or transferred
into its name as trustee or into the name of the nominee as it may direct, or it may retain them
unregistered and in form pennitting transferability, but the books and records shall at all times show
that all investments are part of the Fund.
(28) The Board is empowered, but is not required, to vote upon any stocks, bonds or securities of
any corporation, association or trust and to give general or specific proxies or powers of attorney
with or without power of substitution; to participate in mergers, reorganizations, recapitalizations,
consolidations and similar transactions with respect to those securities; to deposit stock or other
securities in any voting trust or any protective or like committee or with the trustees or with
depositaries designated thereby; to amortize or fail to amortize any part or all of the premium or
discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the
powers of an owner with respect to stocks, bonds or other investments, comprising the Fund which
it may deem to be to the best interest of the Fund to exercise.
(109) The Board shall not be required to make any inventory or appraisal or report to any court,
nor to secure any order of court for the exercise of any power herein contained.
(11 W) Where any action which the Board is required to take or any duty or function which it is
required to perform either under the terms herein or under the general law applicable to it as trustee
under this subchapter, can reasonably be taken or performed only after receipt by it from a member,
the City or any other entity of specific information, certification, direction or instructions, the Board
shall be free of liability in failing to take any action or perform any duty or function until that
information, certification, direction or instruction has been received by it.
3
ORD. NO. 7-07
(12H) Any overpayments or underpayments from the Fund to a member or beneficiary caused by
errors of computation shall be adjusted with interest at a rate per annum approved by the Board.
Overpayments shall be charged against payments next succeeding the correction. Underpayments
shall be made up from the Trust Fund.
(.U+i!) The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the
payments and benefits herein provided for and shall be under no obligation to inquire into the
sufficiency of the payments made into the Fund by the City.
(14H) In any application to or proceeding or action in the courts, only the City and the Board shall
be necessary parties, and no member or other person having an interest in the Fund shall be entided
to any notice of service or process. Any judgment entered in that proceeding or action shall be
conclusive upon all persons.
Section 2. That all ordinances or parts of ordinances in conflict herewith be,
and the same are hereby repealed.
Section 3. That if any section, subsection, paragraph, sentence or word or other
provision of this ordinance, or any portion thereof, or its application to any person or circumstance,
be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall
not affect the validity of any other section, subsection, paragraph, sentence or word or provision or
its application to other persons or circumstances and shall not affect the validity of the remainder
hereof as a whole or part thereof other than the part declared to be invalid.
Section 4. That this ordinance shall become effective immediately upon passage on
second and final reading.
the
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PASSED AND~ in regular session on second and final reading on this
day of , 2007.
ATTEST:
~Rl~
~~.~~
City Clerk
First Reading ~~\ ~
~\5\\)\
Second Reading
4
ORD. NO. 7-07
MEMORANDUM
TO:
FROM:
MAYOR AND CI1Y~CO MISSIONERS
CI1Y MANAGER
J
AGENDA ITEM # I O. ~ - REGULAR MEETING OF MARCH 5, 2007
ORDINANCE NO. 7-07
SUBJECT:
DATE:
MARCH 2, 2007
This ordinance is before Commission for second reading for an ordinance amending Chapter 33,
"Police and Fire Departments", Subheading "Pensions", of the Code of Ordinances by amending
Section 33.66, "Finances and Fund Management", revising investment provisions.
At the first reading on February 20,2007, the Commission passed Ordinance No. 7-07.
Recommend approval of Ordinance No. 7-07 on second and final reading.
S:\City Oerk\AGENDA COVER MEMOS\OnIinance Agenda Memos\Ord 7-07 Amending Chapter 33 Police and Fire Dept Subheading Pension 03.05.07.doc
DATE: February 16, 2007
TO: City Commission
FROM: Susan Ruby, City Attorney
SUBJECT: Police/Fire Pension Ordinance
This ordinance has been revised to reflect the direction given by the City
Commission at its workshop meeting regarding the investment parameters of the
Police/Fire Pension Board. By copy to Douglas Smith, Assistant City Manager,
please place this ordinance on the City Commission Agenda for approval.
Cc. Douglas Smith, Assistant City Manager
Chevelle Nubin, City Clerk
12 .~
cI\
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ORDINANCE NO. 7-07
AN ORDINANCE OF THE CI1Y COMMISSION OF THE
CI1Y OF DELRA Y BEACH, FLORIDA, AMENDING
CHAPTER 33, "POLICE AND FIRE DEPARTMENTS",
SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CI1Y OF DELRA Y BEACH,
FLORIDA, BY AMENDING SECTION 33.66, "FINANCES
AND FUND MANAGEMENT", REVISING INVESTMENT
PROVISIONS; PROVIDING A GENERAL REPEALER
CLAUSE; PROVIDING A SAVINGS CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY THE CI1Y COMMISSION OF
THE CI1Y OF DELRA Y BEACH AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire Departments", subheading, "Pensions",
of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section
33.66" FINANCES AND FUND MANAGEMENT", subsection (E), to read as follows:
Sec. 33.66. FINANCES AND FUND MANAGEMENT.
*
*
*
(E) The Board of Trustees shall have the following investment powers and authority:
(1) The Board of Trustees shall be vested with full legal tide to the Fund; subject however and in
any event to the authority and power of the City Commission to amend or terminate this trust;
provided that no amendment or fund termination shall ever result in the use of any assets of this
Fund except for the payment of regular expenses and benefits under this system. All contributions
from time to time paid into the Fund, and the income thereof, without distinction 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.
(2) The Board and each trustee thereof is a fiduciary with respect to the Trust Fund. and shall
exercise investment authority under this Section solely in the interest of plan members and
beneficiaries. for the exclusive purpose of providing benefits to members and their beneficiaries and
defraying the reasonable expenses of administering the plan. The Board shall exercise its investment
authorit;y with the care. skill. prudence and diligence under the circumstances then prevailing that a
prudent person in a like capacity and familiar with such matters would use in the conduct of an
enterprise with like character and like aims. The Board of Trustees may iff.rest aad reinvest the assets
of the Trust Fuad ift hoftds, stoeks, or otftcr e~J"idenccs of indebteooess issued Of guaranteed hy II
eorporatioa orgaaized tlader the laws of the Uflited States, afty state, or orgaaized territory of the
United Statcs or the Disttict of ColtlffiBia, or ift foreigR securities, in accordance ~-ith the provisiofts
of this Sectioa.
m Notwithstanding any limitation provided in Chapter 175 or Chapter 185. Florida Statutes. or any
limitation or condition contained in Section 215.47. Florida Statutes. the Board of Trustees may
invest and reinvest pension fund assets in such securities. investment vehicles and proper1;y wherever
situated and of whatever kind. as the Board shall approve in the exercise of its fiduciary du1;y and
authorit;y. including but not limited to common or preferred stocks. bonds and other evidences of
indebtedness or ownership. In no event. however. shall more than ten (10) percent of the assets of
the fund. at cost. be invested in foreign securities: provided. if state law is amended to allow
investments in foreign securities of fifteen (15) or more percent of fund assets. the Board may invest
up to fifteen (15) percent of fund assets. at cost. in foreign securities. The Board shall exereise its
HY.restmea.t aathority uader this Section solely in the interest of plaft memBer3 and bencficiaries, for
the exdusi-;e ptll'f'ose of pro>;.-iding bencfits to members aad their Beaeficiaries aftd defrltJiag the
reasonable expea.ses of administering the plan. The Board shall exercise its iff.-estftleat authority
~-ith the carc, sk:il.l, prude ace aad diligeaee under the ctrcl:lfflstaaees then pre-vailffig that a pmdeat
persoa in a like eapacity and familtM ",-ith such matters ~ auld use in the conduct of an enterprise
with like character aad like aims.
(4) The Board shall adopt and periodically update a written investment policy in accordance with
F:& Section 112.661, Florida Statutes. All investments approved by the Board shall be in
accordance with the investment policy. The Board shall provide a copy of the investment policy
and any revisions thereto to the Cit;y Manager. in accordance with Section 112.661. Florida Statutes.
ifteorporating thc following requfremea.ts for specific in-.-esfffieats:
(a) Iftycstments in u.s. stocks aftd boads must be in eorporations that Me listed on any ofte or
more of the reeognized aatfoaal stock exehaagtcs or oa the National Market System of the
NASD}..Q Stoek MMket, aa.d, in the case of bonds only, holds a rating in oae of the three (3)
highest classifications by a major mtffig service.
(b) The Board of Trustees shall not HY.-est more thaa five (5) pereeat of Trust Fand assets in the
eommoa. or eapital stock of anyone issuing company, nor shall the aggregate in-;estment in
eommon or capital stock in oae eompltftY exceed five (5) perccnt of the outstanding common Of
eapital stock of that company; nor shall the aggregate of the FWid's im-estmeats in commoa or
eapital stodr usiftg the market val\:le method exeeed se-....enty (70) perceat of the Fl:lfld's assets, as
measured on the last business day of each quMter. The Board of Trustees shall reealancc the Fund's
assets B}' the last basmess day of the following qaarter, ualess the BOMd determines that it wol:lld
aot Be eeoftomicaRy feasible Because rehalaaciag would cause an economic loss, in whieh case the
F1:1ad's assets shall be reBalaaeed as soon as it is eeonomically f-casible to do so.
(e) The Board may in-Jest aad rein-Jest the assets of the Fund in time or Slt'.-iags aceounts of a
aatioa.al baa.k, a State bank insured by the Baak Iasuraftce Fl:lfld, or a Slt'Jllgs, building, and loan
association insured by the Savings Associattoft Iasuraaee Fuad which i3 lt~tered by the Federal
Deposit Insurance Corporation or a state or federal ehartered credit anion whose share accounts
are insured by thc Nattoaal Credit Unioa Share Insurance Fuad.
(<1) The Board may invest 1:lf' to ten (10) percent of Fund assct~, at cost, in foreigR sectlrities, aa.d
ffiitY also iftvest ift boads i3sued by the State of hrael.
2
ORD. NO. 7-07
(5) The Board shall provide a quarterly financial report to the City Manager no later than thirty days
following the end of each calendar quarter. which report shall include a summary reflecting the total
market value of the fund at the beginning and end of the quarter. total investment gains and losses
during the quarter. and a summary of the market value and investment gains and losses during the
quarter for each manager responsible for investing fund assets. The Board shall also provide a copy
of all reports from the Board's investment consultant to the City Manager within five days following
the Board's approval or review of such reports.
(Q-S) The Board may retain in cash or unproductive of income an amount of the Fund as it may
deem advisable, having regard for the cash requirements of the system.
0-6) Neither the Board nor any person or entity shall be liable for the making, retention, or sale of
any investment or reinvestment made as herein provided, nor for any loss or diminishment of the
Fund, except that due to his own negligence, willful misconduct, or lack of good faith.
(fi-+) The Board may cause any investment in securities held by it to be Registered in or transferred
into its name as trustee or into the name of the nominee as it may direct, or it may retain them
unregistered and in form permitting transferability, but the books and records shall at all times show
that all investments are part of the Fund.
(28) The Board is empowered, but is not required, to vote upon any stocks, bonds or securities of
any corporation, association or trust and to give general or specific proxies or powers of attorney
with or without power of substitution; to participate in mergers, reorganizations, recapitalizations,
consolidations and similar transactions with respect to those securities; to deposit stock or other
securities in any voting trust or any protective or like committee or with the trustees or with
depositaries designated thereby; to amortize or fail to amortize any part or all of the premium or
discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the
powers of an owner with respect to stocks, bonds or other investments, comprising the Fund which
it may deem to be to the best interest of the Fund to exercise.
(109) The Board shall not be required to make any inventory or appraisal or report to any court,
nor to secure any order of court for the exercise of any power herein contained.
(l1W) Where any action which the Board is required to take or any duty or function which it is
required to perform either under the terms herein or under the general law applicable to it as trustee
under this subchapter, can reasonably be taken or performed only after receipt by it from a member,
the City or any other entity of specific information, certification, direction or instructions, the Board
shall be free of liability in failing to take any action or perform any duty or function until that
information, certification, direction or instruction has been received by it.
(12-H) Any overpayments or underpayments from the Fund to a member or beneficiary caused by
errors of computation shall be adjusted with interest at a rate per annum approved by the Board.
Overpayments shall be charged against payments next succeeding the correction. Underpayments
shall be made up from the Trust Fund.
(1m) The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the
payments and benefits herein provided for and shall be under no obligation to inquire into the
sufficiency of the payments made into the Fund by the City.
3
ORD. NO. 7-07
(14H) In any application to or proceeding or action in the courts, only the City and the Board shall
be necessary parties, and no member or other person having an interest in the Fund shall be entided
to any notice of service or process. Any judgment entered in that proceeding or action shall be
conclusive upon all persons.
Section 2. That all ordinances or parts of ordinances in conflict herewith be,
and the same are hereby repealed.
Section 3. That if any section, subsection, paragraph, sentence or word or other
provision of this ordinance, or any portion thereof, or its application to any person or circumstance,
be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall
not affect the validity of any other section, subsection, paragraph, sentence or word or provision or
its application to other persons or circumstances and shall not affect the validity of the remainder
hereof as a whole or part thereof other than the part declared to be invalid.
Section 4. That this ordinance shall become effective immediately upon passage on
second and final reading.
the
PASSED AND ADOPTED in regular session on second and final reading on this
day of ,2007.
ATTEST:
MAYOR
City Clerk
First Reading
Second Reading
4
ORD. NO. 7-07
c,c. lr {Uf\ e l J ()..-/
www.bocanews.com · Boca Raton/Delray Beach News - Thursday, February 22, 2007 9
GloCl
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100
ANNOUNCEMENTS
101 Legal Kotices
CITY OF DELRAY BEACH,FLORIDA
NonCE OF PUBUC HEARING
PUBLIC HEARING will be held on
he following proposed ordinance at
:00 p.m. on MONDAY, MARCH 5.
007 or at any continuation of such
eeling which is set by the
issionJ, in the City Commission
hambers. 100 NW. 1st Avenue. Del-
ay Beach, Florida. at which time the
ity Commission will consider its
doption. The proposed ordinance
ay be inspected at the Office of the
ity Clerk at City Hall. 100 NW. 1st
venue, Delray Beach, Florida, be-
een the hours of 8:00 a.m. and 5:00
.m., Monday through Friday, except
olidays. All interested parties are in-
lited to aUend and be heard with re-
peel to the proposed ordinance.
ORDINANCE NO. 7-07
N ORDINANCE OF THE CITY COM.
ISSION OF THE CITY OF DELRAY
EACH, FLORIDA. AMENDING
HAPTER 33. .POLlCE AND FIRE
EPARTMENTS', SUBHEADING
PENSIONS". OF THE CODE OF OR-
INANCES OF THE CITY OF DEL-
AY BEACH, FLORIDA, BY AMEND-
NG SECTION 33.66. 'FINANCES
NO FUND MANAGEMENT". REVIS-
NG INVESTMENT PROVISIONS;
ROVIDING A GENERAL REPEALER
LAUSE; A SAVINGS CLAUSE; AND
N EFFECTIVE DATE.
lease be advised that if a person de.
ides 10 appeal any decision made by
he City Commission with respect to
ny matter considered at these hear-
ngs, such person may need to ensure
hat a verbatim record includes Ihe
estimony and evidence upon which
he appeal is to be based. The City
oes nof provide nor prepare such
ecord. Pursuant 10 F.S. 286.0105
CITY OF DELRAY BEACH
Chevelle D. Nubin, CMC
j City Clerk
fUbliSh: Thurs. February 22, 2007
~oca RatonlDelray Beach News