HomeMy WebLinkAboutR-84-0425J-84-209
3/1/84
rr/D-6
RESOLUTION NO.84-425
A RESOLUTION APPROVING AND CONFIRMING TWO
ATTACHED AGREEMENTS BETWEEN THE BOARD OF
TRUSTEES OF THE MIAMI GENERAL EMPLOYEES'
RETIREMENT PLAN AND DEMARCHE ASSOCIATES
PROVIDING FOR THE FURNISHING OF CUSTODIAL
AND ASSET MANAGEMENT EVALUATOR SERVICES
TO SAID PLAN.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The two attached custodial and asset
management evaluator services agreements between the Board of
Trustees of the Miami City General Employees' Retirement Plan
and Demarche Associates provi.dinq for the furnishing of
custodial and asset management evaluator services to said
Plan are hereby approved and confirmed.
PASSED AND ADOPTED this 5th day of April , 1984.
Maurice A. Ferre
ATTEST:
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PREPARED AND APPROVED BY:
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DEPUTY CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
ITY ATTORNEY
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CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO: Howard Gary DATE: February 24, 1984 FILE:
City Manager
SUBJECT: Ratification of Contracts
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FROM: Elena Rodriguez `� V REFERENCES: Demarche Associates
Pension Administrator
ENCLOSURES:
Recommendation
It is recommended by the Miami City General Employees' Retirement
Plan Board of Trustees that the enclosed contracts be ratified.
Background
Currently the above board oversees investments of approximately
$100 million. In order to keep these assets productive of income,
it employs three money managers and one evaluator. In keeping with
their fiduciary responsibility, the Board of: Trustees is contracting
with their evaluator to do a review of:
a) Definition of feasible asset classes and determination of goals
for cash income and real rate of return.
b) Determine the maximum and minimum holding percentages for each
asset class.
c) Provide a data base of historical returns for each asset class
and calculate relevant statistics on return and risk for each
class and the cross correlation between classes.
d) Provide estimated future returns and volatilities for each class
under a range of inflation outlooks and determine the risk -reward
tradeoffs for various allocation strategies using computer simu-
lation.
e) Determine proper percentage ranges for holdings in asset classes
to meet real return targets and minimize volatility. Determine
a range for "non-traditional." investments, sufficient to positively
improve performance without imparing overall prudence.
f) Assist in writing investment guidelines which will include specific
recommendations on the appropriate number and type of investment
84-42�
MAL
Howard Gary 2/24/84
management organizations, the allowable range for each asset
class, and any required technique for adjusting the asset mix.
e) Search and selection of management firms that will empower the
fund to meet its investment objectives.
Funds to cover the enclosed contracts were not included in the 1983-84
budget; however, the improvement of revenues will more than compensate
for the $30,000 expenditure.
W"IN
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e�-425
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AGPJEVM
This agreement made this day of October, 1983
by and between the TRUSTEES of THE MIAMI CITY GENERAL
EMRA MS RE'TIRBENT PLAN, hereinafter refered to as
"Trustees" and DROAR01E ASS(CIATES, hereinafter refered to
as "Company".
WHEREAS, The Miami City General Employees Retirement
Plan is an irrevocable Trust established by Ordinance, and
Wes, the Trustees, by ordinance, have the right to
employ persons or firms to assist the Trustees in the
performance of their duties:
NOW, THEREFORE, the Trustees and the Company agree as
follows:
1. The Trustees retain the sevices of Canpany to
assist said Trustees in their search for a Money Manager to
manage the Trust assets.
2. The Canpany agrees to provide the following
services to the Trustees:
a. Determination with the Trustees of Manager
characteristics for structure, performance and geographical
location.
b. Development of an appropriate list of
prospective managers.
c. Preparation of a comprehensive questionaire for
all managers.
d. Tabulation of questionaire responses.
e. Screening or responses to determine an edited
list of semi-finalists candidates wnich shall be approved by
the Trustees.
f . Preparation of detailed DeNlarche profiles on
each semi-finalist candidate.
g. Interview in person of each semi-finalist
candidate.
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h. Development of historical strength —weakness
portfolio reports to document each investment manager's
decision process and its effectiveness.
i. Selection of finalists, which shall be approved
by the Trustees, and arrangement of personal appearances
before said Trustees of each finalist.
3. The Company shall provide three in —person meetings
with Trustees to accomplish the objectives set forth herein.
4. Time is of the essence for this agreement and the
total time for performance under the terms enumerated herein
shall not exceed nine (9) months from the date hereof.
5. The Company agrees to provide to Trustees all
information necessary at least two weeks prior to any board
meeting of Trustees called in furtherance of the purposes of
this agreement.
6. The Trustees agree to pay'to the Company for
services rendered herein the sum of Twenty Thousand dollars
($20,000.00), which shall be paid within thirty (30) days of
receipt of statement.
7. The Trustees agree to pay to the Company, in
addition to the above, any direct expenses incurred for
meetings which the Company is required to attend which
exceed the three in -person meetings provided for previously
in this agreement. Direct expenses for each meeting shall
not exceed the sum of Five Hundred dollars ($500.00) plus
travel, room and meals.
8. The Trustees acknowledge that the Company will not
render investment advice and has tic authority, control, or
responsibility respecting the management or disposition of
the Trustees' funds.
9. The Company shall notif,,° the Trustees if there is
any change in the persons who comprise the partners of the
Company, which is a partnership, within ten (10) days of any
such change.
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10. The Trustees acknowledge disclosure by the Ccrnpany
of the information required by Reg 275,204-3(a) under The
Investment Advisors Act of 1940. If said information was
received by the Trustees later than Forty Eight (48) hours
prior to the tune the Trustees sign this agreement, then the
Ccrnpany agrees that upon written notice, the Trustees may
terminate this agreement on or before five (5) days
following the date hereof.
11. This agreement may be terminated by either party
upon the giving of thirty (30) days written notice provided
that all prior obligations of the instant agreement have
been performed by the party givng notice of said
termination.
12. This agreement shall be governed and enforced in
accordance with the laws of the State of Florida.
13. This agreement represents the entire understanding
and aEgrec.,mcnt of the parties and 010, tMLz End iyrOVisions of
this agrecanc:nt shall only I..)e nnctified or v1w-�nded in l'YLiting
signed by the porties hereto.
INN WITNESS MERM- , the parties hereto have hereunto
set their hands and seals the day and year first above
written.
"OCWANY" : "'TRUSTEES":
0940CHE ASSOCIATES 1RUSIT.ES OF M1AMI CITY GENERAL
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Date � Date
84-425
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This agreement made this day of October, 1983
by and between the TRUSTEES of THE MIAMI CITY GENERAL
EViP=ES RETIREMENT PLAN, hereinafter refered to as
"Trustees" and D€'iVY-T E ASSOCIATES, hereinafter refered to
as "Company".
WERE -AS, The Miami City General Employees Retirement
Plan is an irrevocable Trust established by Ordinance, and
WIEREAS, the Trustees, by ordinance, have the right to
employ persons or firms to assist the Trustees in the
performance of their duties:
NCJV, THERUME, the Trustees and the Canpany agree as
follows:
1. The Trustees retain the services of Company to
assist said Trustees in establishing investment guidelines
for the Trust assets.
2. The Ccrnpany agrees to provide the following
services to the Trustees:
a. Definition of feasible asset classes and
determinationof goals for cash income and real
rate of return.
b. Determination of maximum and minimum
holding percentages for each asset class.
c. Provide data base of historical returns for
each asset class.
d. Calculation of relevant statistics on return
and risk for each class and the cross correlation between
classes.
e. Provide estimated future returns and
volatilities for each class under a range of inflation
outlooks.
f. Determine risk -reward tradeoffs for various
allocation strategies using computer simulation.
84-426
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is g. Prepare sufficient simulations to determine
sensitivity to small changes in the input variables.
!� h. determine proper percentage ranges for holdings
is
in asset classes to meet real return targets and minimize
i
j volatility. Determine a range for "non-traditional"
investments, sufficient to positively improve performance
without impairing overall prudence.
I. Assist in writing investment guidelines which
will include specific recommendation on the appropriate
i
number and type of investment management organizations, the
allowable range for each asset class, and any required
E'
' technique for adjusting the asset mix.
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j. The Company agrees to consult with the Trustee
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actuary prior to formalizing the investment objectives.
k. The Trust Fond shall consist of all assets and
not any one paricular lyortfol.io.
3. Company shall provide three in -person nrsetings with
Trustees to acco;nplish the objectives set forth herein.
4. Time is of the essence for this agreement and the
total time for performance under the terms enurnsrated herein
shall not exceed three (3) months from the date hereof.
S. The Company agrees to provide to Trustees all
Information necessary at least two weeks prior to any board
meeting of Trustees called in furtherance of the purposes of
this agreement.
6. The Trustees agree to pay to the Company for
services rendered herein the sum of Ten Thousand dollars
($10,000.00), which smhll be paid within thirty (30) days of
receipt of statement.
7. The Trustees agree to pay to the Company, in
addition to the above, any direct expenses incurred for
meetings which the Company is.required to attend which
exceed the three in person meetings provided for previously
in this agreement. Direct expenses, for each meeting shall
not exceed the sum of Five Hundred dolars ($500.00) plus
travel, room and meals.
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8. The Trustees acknowledge that the Company will. not
render investment advice and has no authority, control, or
responsibility respecting the management or disposition of
the Trustees' funds.
9. The Company shall notify the Trustees if there is
any change in the persons who comprise the partners of the
Company, which is a partnership, within ten (10) days of any
such change.
10. The Trustees acknowledge disclosure by the Company
of the information required by Reg 275.204-3(a) under The
Investment Advisors Act of 1940. If said information was
received by the Trustees later than Forty Eight (48) hours
prior to the time the Trustees sign this agreement, then the
Company agrees that upon written notice, the Trustees may
terminate this agreement on or before five (5) days
following the dntc hereof.
11. This agreement may be terminated by either party
upon the giving of thirty (30) days written notice provided
that all prior obligations of the instant agreement have
been performed by the party giving notice of said
termination.
12. This agreement shall be governed and enforced in
accordance with the laws of the State of Florida.
13. This agreement represents the entire understanding
and agreement of the parties and the terms and provisions of
this agreement shall only be modified or amended in writing
signed by the parties hereto.
84-42�
IN WITNESS VVdEREOF, the parties hereto have hereunto
set their hands and seats the day and year first above
written.
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DB%RCHE ASSOCIATES TRUSTEES OF NUAN11 CITY CENERAL
mAnTr%smlP,z PPT7R WF.WP PLAN
84-425