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Home My WebLink AboutCity of Tamarac Resolution R-84-047Introduced by Temp. #3043 1 2 3 4 5 6 7 8 - 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31; I 32 33 34 CITY OF TAMARAC, FLORIDA RESOLUTION NO: Ley- �/ A RESOLUTION APPROVING A LETTER AGREEvEW WITH THE INVESTMENT COUNSEL COMPANY DATED JANUARY 16, 1984 AS INVESTMENT COUNSEL FOR THE CITY OF TAMARAC M(JNICIPAL EMPLOYEES PENSION PLAN; AUTHORIZING AND DIRECTING THE PROPER CITY OFFICIALS TO EXE= THE AGREE- MENT: AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council, in Resolution No. R-84-3 on January 3, 1984, approved the designation of The Investment Counsel Company as Investment Advisor for two (2) million dollars ($2,000,000.00) of the Tamarac Municipal Employees Pension Fund; and WHEREAS, since the passage of R-84-3, the City received a letter agreement dated January 16, 1984 from the Investment Advisor with a request to execute the agreement. NOW, TBEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: That The Investment Counsel Company of Orlando, Florida, is reaffirmed as the Investment Counselor for two (2) million dollars ($2,000,000.00) of the City of Tamarac Municipal Employees Pension Plan. SECTION 2: That the proper City Officials are authorized and directed to execute the letter agreement dated January 16, 1984 frcm the Investment Advisor. SECTION 3: That the Resolution is effective upon adoption. PASSED, ADOPTED AND APPROVED this day of �, 1984. "1� ATTEST: ASSISTANT CITY CLERK I HEREBY CERTIFY that I have approved the form and correct- ness of this LUrION. MAYOR RECORD OF COUNCIL VOTE MAYOR FALCK: _...._._.�......�� '�_.�....... DIST. x. CIM KRAVITZ. OW. 2: VfM MASSARO: DIST. 3: C(M STELZER: -.--�� DIST. 4: C/M KRANTZ: �ad0 The Investment Counsel 56 East Pine Street Orlando, Florida 32801 Re: Gentlemen: Company CITY OF TAMARAC PENSION PLAN Name of Account Date January 16, 1984 You are authorized to act as investment counsel for the above account as to the assets listed herewith, and any additions thereto, including related interest and dividend payments. Under this authority, effective on the acceptance date below, you are to direct (recommend) the sale of any of such assets and the reinvestment or holding for reinvestment of any proceeds of such sales as you deem advisable in keeping with the investment objectives of the account, as attached herewith. All transactions shall be through qualified brokers or dealers or the corporate custodian. You shall not receive or have custody of assets. For your services, we will pay you quarterly 'in advance an investment counsel fee according to the rate schedule attached. Minimum annual fee is waived There are no other charges. This understanding may be cancelled on 30 days' notice. We hold you harmless from all liability except for gross negligence, except, however, that nothing herein shall be deemed a waiver of any right arising under any applicable law. In conformity with the provisions of the Investment Advisers Act of 1940, you may not assign this contract within the meaning of that Act without our consent. Execution of this agreement acknowledges our receipt from The Investment Counsel Company of Form ADV Part II. Yours truly, Accepted: THE INVESTMENT COUNSEL COMPANY CITY OF TAMARAC PENSION PLAN Name of Account By: Em Attest: 4�k� �2 Caro s, Assistant Cityer THE INVESTMENT COUNSEL COMPANY FEE SCHEDULE Investment counsel fees are charged at the following rates. Stock, Bonds and Reserves Annual Rate on Market Value 0.50% Quarterly 0.125% Payable quarterly in advance. There are no other charges. Example Market Value Stocks, Bonds $1.1000,000 and Reserves Investment Counsel Fee Annual Quarterly $5,000 $1,250 1 THE INVESTMENT COUNSEL COMPANY Date January 16, 1984 CITY OF TAMARAC PENSION PLAN INVESTMENT MANAGEMENT POLICIES AND GUIDELINES 1. General Philosophy While both absolute and relative measures of investment performance should be.monitored, the primary emphasis will be focused on absolute performance. The basic objective of the Plan is to attain a reason- able rate of return which will keep the Fund actuarily sound. This return will be achieved within the framework of the "prudent man" rule, as defined in the Employee Retirement Income Security Act of 1974, recognizing the responsibilities to the City of Tamarac Pension Plan. 2. Portfolio Guidelines The investment manager is empowered to exercise complete discretion in security selection, within the following limitations: A. Cash. There is a positive cash flow from contributions into the Fund. With respect to cash -equivalent short-term investments, over- all quality and minimal risk guidelines apply. Instruments which may be used are: United States Government Obligations, Certificates of Deposit and Repurchase Agreements with major money center banks, Commercial Paper rated A-1 by Standard & Poor or Moody's P-1 rating or better, with the exception of the custodian's savings account. B. Equity Securities (including preferred stocks). To achieve a quality level deemed desirable, it is expected that a majority of the equity securities be listed on one of the nation's stock exchanges. Further, the aggregate investment in any one issuing company shall not exceed 1% of the outstanding capital stock of that company. The port- folio -is limited to a maximum of 40% of total assets at cost in equity securities. C. Fixed -Income Securities. The quality minimum of all fixed - income securities purchased for the Fund shall be Standard & Poor and Moody's rated A or its equivalent. A minimum of 60% of the total assets at cost will be committed to fixed -income securities. D. Absolute Restriction. Investment activity in the following is prohibited: 1. Short sales, margin purchases, or borrowing. 2. Private placements or other restricted securities (not freely marketable). 3. Commodities. 4. Puts, calls, straddles or hedging. 5. Foreign securities. 6. Warrants or other options, except as part of purchase of another security. 7. Tax exempt bonds. TK INVESTMENT COUNSEL COMMNY INVESTMENT MANAGEMENT POLICIES AND GUIDELINES --Page 2 3. Communications The Trustees require continual awareness of the Fund's activity and position, both absolute and relative. To accomplish this: A. Daily. Confirmation of all trades should be sent to the person(s) so designated by the Trustees to receive such notice. B. Monthly. End -of -month valuations of current holdings at market value should be sent to the person(s) so designated by the Trustees to receive such reports. C. Quarterly. 1. Evaluation reports will be supplied to the Trustees to provide most current statistics on rate of return. 2. Written reports should be supplied by the investment manager in sufficient detail and commentary so that the Trustees are apprised of Fund status and any changes in philosophy or investment strategy.. D. Meetings. On a reasonable schedule, and not less than quarterly intervals, meetings will be held with the investment manager to discuss performance results, economic outlook, investment tactics, organizational changes and any other pertinent matters. The Trustees will quickly schedule an interim meeting whenever the manager or Trustees deem necessary. E. Immediate. Telephone and/or letter advise should be forth- coming from the manager to provide the Trustees with information of an immediate nature, such as relevant personnel changes, market activity resulting in abnormal changes in the Fund, etc. It is the Trustees' intention to review this Statement of Investment Management Policies and Guidelines at least annually; as the above are changed or expanded, this document will be amended. No amendment to this document shall be made except by the consent of the Board of Trustees. CITY OF T PENSION PLAN ter a yor DateIAur a . S City Manager Attest: Assistant i t y C er-r-I INVESTMENTTHE •COMPANY Date/�..�