HomeMy WebLinkAboutR-79-0099RESOLUTION NO. "r 9 - 9 9
A RESOLUTION AUTHORIZING THE
CITY MANAGER TO EMPLOY THE DeMARCHE ASSOCIATES
AS FINANCIAL ADVTSOFS TO THE TRUSTEES OF THE
MIAMI CITY GENERAL FMPLOYEFF' RETIREMENT PLAN
TO PROVIDE SERVICES DUPING THE ('OMING YEAR IN
CONNECTION UITY TUF MEAFUREMFNT OF INVESTMENT
PERFORMANCFANT G;TTP TPF AUDIT OF THE PORTFOLIO
OF THE ;'AID PLAN WITT; FUND,' THF;REFOR PAYABLE IN
THE AMOUNT OF FIGHTEFr TT'oUSATTD DOLLARS ($18,000)
(CASH OR HARD roLLARF), TT; C UAFTERLY INSTALLMENTS
FROM THE PLAN TRUUFT FUND.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1. The City's employment of the DeMarch Associates as
financial advisors to the Trustees of the Miami City General Employees'
Retirement Plan to provide services during; the coming year in
connection with the measurement of investment performance and with
the audit of the portfolio of the said Plan with funds therefor
payable it the amount of Eirhteer. Thousand Dollars ($18,000) (cash
or hard dollars) in cuarterl,y installments from the said Plan's Trust
Fund is hereby approved.
PASSED AND ADOPTED this 22 day of FEBRUARY , 1979.
"SUPPORTIVE
(XJCUMENTS
FOLLOW"
ATTEST:
PREP RED AND APPROVED BY:
ROBE T F. CLARK
ASSISTANT CITY ATTORNEY
CI
D AS TO FORM ANT' CO ,CTNESS:
E F. KNOX,
ATTORNEY
MAURICE A. FERRE.
MAYOR
IT[M NO
11
CITY COMMISSION
MEETING OF
FEB?, 2 if9
unoN N 7 9- 9 9
Go
CITY OF MIAMI, FLORIDA
INTEROFFICE MEMORANDUM
TO:
PROM:
Joseph R. Grassie
City Manager
J es E. Gunderson
Director of Finance
DATE:
SUBJECT:
February 9, 1979
RILE:
Performance Evaluation of
Pension Plan
REFERENCES:
ENCLOSURES:
The attached resolution was approved by the Board of Directors of
the General Employees Retirement Plan. The service requested is
outlined in the de' Marche Associates letter from Mr. Samuel T.
DeKinder (attached). The cost is to be paid from the existing
appropriation within the FY-79 pension budget. The cost of the
study will be $18,000.
"SUPPORTIVE
DOCUMENTS
FOLLOW"
79-99
ti
de marche associates
November 7, 1978
Mr. Ron Silver
Attorney at Law
2020 NE 163rd Street
Suite 300
North Miami Beach, Florida 33162
Dear Ron:
Samuel T. De Kinder
Executive Vice President
We sincerely appreciate the confidence expressed by the trustees
of the Miami Retirement Plan in selecting Demarche Associates as
performance evaluation consultant to the Plan. Obviously, we
look forward to preparing our first reports for the board and to
a successful on -going relationship.
In that regard, enclosed is a sample copy of the contract currently
in effect between the Miami City Employees Retirement System and
Demarche Associates. It should serve as a guide in preparing an
appropriate agreement between the Plan and Demarche.
As discussed in our telephone conversation, our total annual fee
for preparation of the quarterly evaluation and audit reports on
each of the three investment manager:; will be $18,000. This fee
will include the additions and modifications to the reports which
we currently provide to the System. These additions and modi-
fications include the following:
• A technique for showing the value added by each manager
through his trading activity. This will show whether the
manager has added or subtracted value by trades and will
show the amount added (subtracted) for each trade.
• A more detailed explanation of any errors shown in the
transaction audit and a reconciliation of those items
with the custodian, prior to reviewing the items with the
trustees.
• Commentary on additional investment opportunities not
currently used by the investment managers for the Mini
mi
account (i.e., different types of fixed income, invest-
{..} i.''� .,ii manta, real estate, etc.)
iocilf,fl `irc,
vI L. , `,
• s.
' Home Office: P.O. Box 7027 a Kansas City, Missouri 64113 a (913) 384-4994
79-99
Mr. Ron Silver
2020 NE 163rd Street
North Miami Beach, Florida
Page 2
November 7, 1978
• A performance comparison between each manager's results
for the Plan account and for the same manager's activity
for the System account.
• A more detailed commentary on evaluation of each manager's
consistency to his stated outlook and investment philosophy,
and to the actions taken on the Plan account.
You may want to incorporate the above items into the agreement,
either by reference or an actual inclusion in the re -written
agreement. Either way will be satisfactory with Demarche.
I will plan to call you on
proposed agreement. Also,
from the custodian on each
start-up details. Since I
November 14 and 15, we can
then.
Friday, November loth, to discuss the
we will need to get beginning data
manager as well as discuss some other
will be at the trustee's meetings on
also cover these items in more detail
Again, we appreciate the opportunity to work with you and the
trustees and look forward to meeting with you next week.
Best regards,
DEMARCHE ASSOCIATES
:564knq (" m)
Samuel T. DeKinder
Executive Vice President
STD/bk
Enclosure
ASSET "?;1HAc,FM EMT EVALUATION ACREF'IENT
AGREEMENT, made this day of
, 1979,
by and between The Hoard of Trustees ("Trustees") of The Miami City
General Employees' Retirement Plan ("Plan") and DeMarche Associates,
a general partnership organs::ed under the laws cif Kansas, with its
principal place of business an Westwood, Kansas ("Asset Management
Evaluator").
WI'1'NESSETII :
WHEREAS, the Trustees have the fiduciary duty and responsibility
for the Plan's asset:; as to preservation, growth and income; and
WHEREAS, the Trustees have designated certain general investment
advisers or money managers to manage portions of the Plan's assets
pursuant to the investment objectives and guidelines adopted by the
Trustees; and
WHEREAS, the trustees are duly authorized to employ professional
experts to assist the Trustees in determining the performance of the
general investment advisers or money managers in the management of
the Plan's assets [City Code, Sec. 41-433(3)(g)j; and
WHEREAS, the Trustees, mindful of their obligation to monitor
and evaluate performances of the Plan's general investment advisers
or money managers in order to assure the protection, growth and pro-0 r.
ductivity of the i'lan's, assets; and -in c
WHEREAS, after examining numerous proposals from firms whichr-- .1,
evaluate the asset management performance of general investment 0
M
advisers or money managers and after reviewing bids made pursuant.< Z
to specifications, the Trustees have heretofore designated and the cf)pri
Commission of the City of Miami, Florida has approved the designation
of DeMarche Associates, a general partnership, with its principal
place of business at 1900 West Oth Street, Suite 316, Westwood,
Kansas, 66206, and organized under the laws of Kansas, to be asset
management evaluator of the Plan's general investment advisers or
money managers.
NOW, THEREFORE, in consideration of the mutual covenants herein
and other rood and valuable consideration, the Trustees and the Asset
Management Evaluator agree as follows:
1. The Trustees appoint DeMarche Associates to provide asset
management evaluation of the Plan':; I*enerril investment advisers or
money managers.
79-99
^rANACIF ENT EVA11 A'l'ffN AflHEMi•:ill'
AGREEMENT, made this day of , 1979,
by and between The Board of Trustees ( "Trustees") or The Miami City
General Employees' Retirement Plan ("Plan") and PeMnrche Associates,
a general partners} -yip organized under the laws of Kansas, with it::
principal place of business s :in Westwood, Kansas ("Asset Management
Evaluator").
WITNE,',SETH :
WHEREAS, the Trustees have the fiduciary duty and responsibility
for the Plan's assets as to preservation, growth and income; and
WHEREAS, the Trustees have designated certain general investment
advisers or money managers to manage portions of the Plan's assets
pursuant to the investment objectives and guidelines adopted by the
Trustees; and
WHEREAS, the trustees are duly authorized to employ professional
experts to assist the Trustees in determining the performance of the
general investment advisers or money managers in the management of
the Plan's assets [City Code, Sec. 41-433(3)(g)]; and
WHEREAS, the Trustees, mindful of their obligation to monitor
and evaluate performances of the Plan's general investment advisers
or money managers in order to assure the protection, growth and pro-
v
ductivity of the Plan's assets; and "Tn 0 C
C n -0
WHEREAS, after examining numerous proposals from firms which,' —
evaluate the asset management performance of general investment 0(:)
m �o
advisers or money managers and after reviewing bids made pursuant Z —1
to specifications, the Trustees have heretofore designated and the rn
Commission of the City of Miami, Florida has approved the designation
of DeMarche Associates, a general partnership, with its principal
place of business at 1900 West 117th Street, Suite 316, Westwood,
Kansas, 66206, and organized under the laws of Kansas, to be asset
management evaluator of the Plan's general investment advisers or
money managers.
NOW, THEREFORE, in consideration of the mutual covenants herein
and other rood and valuable consideration, the 'Trustees and the Asset
Management Evaluator agree as follows:
1.
The Trustees appoint DeMarehe Associates to provide asset
management revaluation of the Plan':, general investment advisers or
money managers.
79-99
2. During the term of this Agreement Dev.arche Associates iates shall:
a. Consult with the Trustees or their designated agent as
to the Trustees' responsibilities in the reporting process of the
investment management: of the Plan's assets.
b. Prepare periodic statistical reports for the Trustees'
use in comparing the decision -making process and performance of the
Plan's
general investment advisers or money managers.
3. DeMarche Associates shall provide the following designated
services:
a. Fund Diversification Monitor and Portfolio
Performance Monitor
b. Fund Transaction Audit
c. A technique for showing the value added by
each manager thrrurh his 1;raiinr activity.
This will show whether the manager has
added or :-,ubt.ra';t ed value by trades rind will
:;how the amount added (subtracted) for each
trade.
d. A more detailed explanation or an:I errors
shown in the transaction audit; and a rec-
onciliation of those items with the custo-
dian, prior to reviewing the items with the
Trustees.
e. Comment. ry on additional 1 nve: t.merrt, opportun-
ities notcurrently used by the investment
manager:, for the account. (i .e. ,
different types of fixed income, investments,
real estate, etc.)
f. A performance comparison between en each manager's
results for the P1an account and for the same
manager's activity for the System account.
g•
A more detail commentary on evaluation of each
manager's consistency to his stated outlook
and investment, philosophy, and to the actions
taken on the Plan account.
•
4. The Trustees shall compensate DeMarche Associates for the
services provided herein at the rate of Eighteen Thousand and no/100
Dollars ($18,000.00) per year, payable in four (4) quarterly payments
of Pour Thousand Five Hundred and no/100 Dollars ($4 ,500.00) each.
Payments shall be due and payable to DeMarche Associates within thirty
(30) days of receipt by Trustees of the periodic reports provided for
herein.
5. The Trustees agree that all reports prepared by DeMarche
Associates shall be used only for t;he internal operat-int* needs of the
Trustees. DeMarche Associates'• definit1onal.system will not; be
willfully made available to any person or parties not a member of the
Trustees' staff or organization, other than specific investment managers
under corrtrac;t, to thu Trlr:,tec:s and Cor whom P( Mar -hey has prepared its
comparative report:;.
6. This Agreement; shall be effective from January 1, 1979, to
the period ending December 31, 1979. This Agreement, nhal1 continue
until modified or terminated. It may he modified at any t irne upon
mutual written agreement of the Trustees and De_Marche Associates and
after December 31, 1979 may be terminated unilaterally at any time
by the Trustees or DcMarche As;;ociaten upon thirty (30) dayr written
notice.
7. This Agreement Is executed and delivered in the State of
Florida and shallbe governed by the laws or the trite of Florida.
as to validity and construction.
8. All terms and provisions of this Agreement shall be binding
upon, inure to the benefit of and be enforceable by the respective
successors of the parties hereto.
9. No agreement or provisions of this Agreement may be changed,
waived, discharged or terminated orally, but only by an instrument
in writing, signed by the party against which enforcement of the change,
waiver, discharge or termination is sought.
10. This Agreement; may be executed simultaneously in two or more
counterparts each of which shall he deemed an original but all of
which together shall constitute one and the same instrument.
PnARI) OF TEu[1''t E:;
THE MIAMI CITY GEtJEPAL EMPLOYEES' RETIREMENT PLAN
By
By
Rose Gordon, Chairperson
James Cox
By ---
James Gunderson
By -..-
Louis DeJesus
(Seal) By (Seal)
Carlos Arauz
(Seal) By (Seal)
Peter Joffre
(Seal) By (Seal)
William Smith
(Seal) By (Seal)
Anne Harris
13y (Seal)
ATTEST: Howard Gary
Ralph Parks, Acting Secretary