6217-97
ORDINANCE NO. 6217-97
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA SUBMITTING TO THE CITY ELECTORS
A PROPOSED AMENDMENT TO THE EMPLOYEES
PENSION PLAN; AMENDING CLEARWATER CODE
OF ORDINANCES DIVISION 3, SECTION 2.399,
ESTABLISHMENT AND OPERATION OF PENSION
FUND, SUBSECTION (c), POWERS AND DUTIES
OF TRUSTEES, RELATING TO INVESTMENTS;
PROVIDING FOR A REFERENDUM ELECTION;
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF CLEARWATER, FLORIDA:
WHEREAS, the City Commission has determined it is in the best interest
of the individuals covered by the Employees Pension Plan, the citizens and
residents of the City to make the following modifications to the investment rules;
and
WHEREAS, the Investment Committee and pension investment advisors
have recommended that these modifications be made; and
WHEREAS, the following changes are consistent with the "Prudent
Person Rule"; now therefore,
BE IT RESOLVED BY THE CITY COMMISSION OF
CLEARWATER, FLORIDA;
Section 1. Section 2.399, Code of Ordinances is amended to read:
(c) Powers and duties of trustees. The trustees may:
(1) Invest and reinvest the assets of the pension fund in annuity
(including group annuity contracts of the pension investment type)
and life insurance contracts of legal reserve life insurance
companies licensed to do business in the State of Florida, in
amounts sufficient to provide, in whole or in part, benefits to which
all of the participants shall be or become entitled under the
provisions of the plan, and pay the initial and subsequent premiums
thereon,
(2) Invest and reinvest the assets of the pension fund in:
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a. Time deposits, of savings accounts- money market
accounts funds certificates of deposits... or money market
certificates of a national bank, a state bank, or a savings, building
and loan association insured by the Federal Deposit Insurance
Corporation or collateralized by United States Government or
Agency securities.
b. Negotiable direct obligations of, or obligations the
principal and interest of which. are. unconditionally guaranteed by,
and which carry the full faith and credit of the United States
Government and its agencies. Investments in this category would
include-but not be limited to the following: United States Treasury
Bills, Notes and Bonds, and securities issued by the Small Business
Administration Government National Mort a e Association Ginnie
Mae). Veterans Administration, and Federal Housing Administration.
Wedwith
OF r4elated te the United e
c. Fullv collateralized United States Aaencv obligations
which carry an implied -guarantee and the implied full faith and credit
of the United States -government. Investments in this category would
include but not be limited to the followin : obligations of the Federal
Home Loan Banks System (FHLB) or its distinct banks and
Financing Corporation (FICC).
d. Other United States Agency obligations which carry an
implied guarantee and_the_implied full faith and credit of the United
States Government. Investments in this category would include but
not be limited to the following: obilgations_of the Federal Farm Credit
Bank, Federal National Mortgage Association (Fannie Mae), Federal
Home Loan Mortgage Coloration (Freddie--Mae),- Student Loan
Marketing Association (Sallie Mae), Financial Assistance. Corporation
and Federal Agriculture Mortgage Corporation (Farmer Mac).
e. Collateralized Mortgage Obligations (CMO) and/or
Real Estate Mortgage-- Investment Conduits {REMIC),_ rated
investment grade or equivalent by Standard and Poor's. Moody's
Fitch or other recognized national ratin a envies which are
backed by securities otherwise authorized in this ordinance and
which are guaranteed as to the time! payment of principal and
interest by the US Government or its Agencies,
-ak f. e- County bonds containing a pledge of the full faith and
credit of the county involved, bonds of the Florida development
Ordinance 6297-97
commission, or
approved as to
administration.
of any other state agency, which have been
legal and fiscal sufficiency by the state board 'of
g_ d- Obligations of any municipal authority issued pursuant
to the laws of this state; provided, however, that for each of the five
years next preceding the date of investment, the income of such
authority available for fixed charges shall have been not less than
one and one-Ralf times its average annual fixed charge
requirements over the life of its obligations.
h. e- Common stocks, preferred stocks and bonds and
other evidence of indebtedness issued or guaranteed by a
corporation organized under the laws of the United States, any
state, or organized territory of the United States of the District of
Columbia or any non-US corporation
engaged !A IAteFAatiI9A8l b esifless-a d trade, provided:
1. The corporation is listed on any one or more of
the recognized national or international stock exchanges
and/or in the case of bonds and mortgage backed securities,
traded amon dealers and investors in a recognized and
agreed upon conventional format.;
2. All corporate bonds shall carry an AA
investment grade rating as established either by Standard &
Poor's, Moody's, e* Fitch or other recognized national rating
agencies; and
3. Not more than # wee five percent of the assets
of the pension fund shall be invested in the common stock
or capital stock of any one issuing company nor shall the
aggregate investment any one issuing company exceed one
five percent of the outstanding capital stock of that company;
nor shall the non-US investments exceed ten oercent of the
pension fund's assets at cost; nor shall the aggregate of the
investments under this subparagraph at cost exceed €
si -five percent of the pension fund's assets at cost.
(3) Cause any pension fund investment in securities to be registered in
or transferred into its name as trustee or into the name of such
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 pension fund.
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(4) Vote upon any stocks, bonds, or securities of any corporation,
association, or trust and give general or specific proxies or powers
of attorney with or without power of substitution; participate in
mergers, reorganizations, recapitalizations, consolidations, and
similar transactions with respect to such securities; deposit such
stock or other securities in any voting trust or any protective or like
committee with the trustees or with depositories designated
thereby; amortize or fail to amortize any part or all of the premium
or discount resulting from the acquisition or disposition of assets;
and generally exercise any of the powers of an owner with respect
to stocks, bonds, or other investments comprising the pension fund
which it may deem to be to the best interest of the pension fund to
exercise.
(5) Retain in cash and keep unproductive of income such amount of
the pension fund as it may deem advisable, having regard for the
cash requirements of the plan.
(6) Retain the services of a custodian bank, an investment advisor
registered under Investment Advisors Act of 1940 or otherwise
exempt from such required registration, an insurance company,
trust company or a combination of these, for the purposes of
...: investment decisions and management. Such investment manager
shall have discretion, subject to any guidelines as prescribed by the
trustees, in the investment of all pension fend assets.
Section 2. A referendum election is hereby called and will be held on
March 10, 1998, at the general municipal election for the consideration by the
voters of the City of Clearwater of the proposed amendment to the Employees'
Pension Plan. The question to appear on the referendum ballot reflecting the
proposed amendment to the Employees' Pension Plan at the regular municipal
election scheduled for March 10, 1998, shall be as follows:
EMPLOYEES' PENSION PLAN
Shall Clearwater Code of Ordinances, Division 3, Employees' Pension
Plan, Section 2.399(c), Powers and duties of trustees, be amended as
provided in Ordinance 6217-97 to revise the types and amounts of
investments and reinvestments of the assets of the pension fund?
YES For amendment to Employees Pension Plan
NO Against amendment to Employees Pension Plan
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4 ordinance 6217-97
Section 3. The City Clerk, is directed to notify the Pinellas County
`. Supervisor of Elections that the referendum item provided above shall be
considered at the election to be held on March 10, 1998.
Section 4. This ordinance shall take effect immediately upon adoption.
The amendment to. the Employees Pension Plan provided for herein shall take
effect only upon approval of a majority of the City electors voting at the
referendum election on these issues.
PASSED ON FIRST READING November 20, 1997
PASSED ON SECOND AND FINAL
READING AND ADOPTED December.4 , 1997
Approved as to form:
Pamela K. Akin, City Attorney
Rifa Garvey, Mayor-Comm(/(/ ioner
Attest:
Cy t is E. Goudeau, City Clerk
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Ordinance 6217-97
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