HomeMy WebLinkAboutR-77-0011RESOLUTION NO, 7741
A RESOLUTION APPROVING THE EMPLOYMENT
tY THE BOARD OF TRUSTEES OF THE MIAMI
CITY EMPLOYEES' RETIREMENT SYSTEM OF
THE ROYAL TRUST BANK OF MIAMI, N.A., TO
PROVIDE CUSTODIAL SERVICES FOR THE SECURITY
PORTFOLIO OF THE SAID SYSTEM'S TRUST PROPERTY
IN ACCORDANCE WITH THE ATTACHED SCHEDULE AND
BACKGROUND SUBMITTED BY SAID ROYAL TRUST BANK
OF MIAMI, N.A.; AND UPON THE FURTHER CONDITION
THAT THE PARENT COMPANY, THE ROYAL TRUST
COMPANY, BY ACCEPTABLE WRITTEN DOCUMENTS,
COMMIT ITS FULL RESOURCES TO UNDERWRITE AND
GUARANTEE THE FAITHFUL PERFORMANCE OF ITS
SUBSIDIARY COMPANY, THE ROYAL TRUST BANK OF
MIAMI, N.A., IN THE AFORESAID PROVISION OF
SERVICES.
mplbyees' Retirement System
by employ agents to have
provided that said
of all investments, receipts, disbursements and other transac-
tions affecting said trust property; and
WHEREAS, the Board advertised in THE MIAMI HERALD
and THE WALL STREET JOURNAL newspapers for the receipt of
WHEREAS, the Board of Trustees of the Miami City
is authorized by law to retain
custody or control of trust property
agent keep accurate and detailed accounts
bid proposals from agents to act as
security portfolio; and
WHEREAS, 17 banks
the System's
11
and trust companies submitted
custodians of
"DOCUME:'.
ITEM NO
proposals to the said Board of Trustees to act as custodian
of the aforesaid security portfolio which has a market value
in excess of 52 million dollars; and
WHEREAS, the fee schedule of said institutions on
a quarterly basis appears in tabulated form on the attached
Sheet of "Custodian Proposals"; and
proposals were reviewed at the
29, 1976; and
lowest bidders were asked to make
Board's meeting of December 17,
WHEREAS, the 17
Board's meeting of October
WHEREAS, the 5
oral, presentations at the
197,61 and
CITY COMMISSION
MEETING OF
J A N 1 3197V
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WfttktAS, the bard has reCctmetided to the City
mission that it is in the best interest of the City that
the second lowest bidder, the Royal Trust Bank of Miami, N,A.
(North America) be engaged to provide custodial services for
the System's security portfolio; and
WHEREAS, the aforesaid Royal Trust Bank of Miami, N.A.
Wss acquired in 1972 by the Royal Trust Company, the largest trust
company in Canada; and
WHEREAS, the Royal Trust Company is over 75 years old
and as of December 31, 1975 had total assets under administration
15.1 billion dollars; and
WHEREAS, the City Commission finds it is in the best
interest of the City to approve the aforesaid recommendation;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF
tE`'CITY OF MIAMI, FLORIDA:
Section 1. The employment by the Board of Trustees
the Miami City Employees' Retirement System of Royal Trust
Bank of Miami, N.A. to provide custodial services for the security
portfolio of the said System's trust property is hereby approved
in accordance with the attached schedule and background submitted
by said Royal Trust Bank of Miami, N.A.; and upon the further
condition that the parent company, the Royal Trust Company, by
acceptable written documents, commit its full resources to under-
write and guarantee the faithful performance of its subsidiary
company, the Royal Trust Bank of Miami, N.A. in the aforesaid
provision of services.
PASSED AND ADOPTED this 13th day of January, 1977.
REEPARED AND APPROVED BY:
2OBERT F. CLARK
ASSISTANT CITY ATTORNEY
APP
G'•RGE F. KN
CITY ATTORNE
AS TO FORM AND C CTNESS
•
20
ROYAL TRUST BANI(
a OF MIAMI, N. A.
627 SOUTHWEST 27' AVENUE
MIAMI, FLORIDA 33135
January 7 1977
Mr, Irwin Mazin, Secretary
Board of Trustees
City of Miami. Employees' Retiret
System
City of Miami
Miami, Florida 33133
Dear Mr. Mazin:
'11 Vvi 2 .6 3.15
pON '60,400n
This is to confirm to you that our parent, The Royal Trust
Company, Montreal, Quebec, Canada, has agreed in principle
to guarantee the faithful performance of our bank, Royal
Trust Bank of Miami, N. A. Our parent has indicated that
they would like to review copies of the appointment agree-
ment and do not anticipate any problem. We understand
that the appointment of the Royal Trust Bank of Miami, N.A.
as Custodian is conditioned on receiving the written
guarantee of our parent.
truly your
ta(xj
/Gladys R. avarro
Vice President and Manager
FROM:
o
Joseph R. Grassie
Ci Manager
Irwin Mazin, Secretary
Board of Trustees
Retirement System
CitY OF MIAMI. FLORIDA
IN,ER•OFFICE MtMORANDUM
:76 DFC
2j
A
P14 2:
°Att. Dec. 213 1976 PI1.t:
tuLIEct: Re
City Commission Approval
of Trustee Action
Proposals
The Board of Trustees of the Miami City Employees' Retirement System,
at their December 17, 1976 meeting, adopted a motion to recommend
to the City Commission that the Royal Trust Bank of Miami, N.A. be
engaged to provide custodial services for their security portfolio.
Please place this action on the City Commission agenda for approval.
BACKGROUND
The City Commission, on July 22, 1976, adopted Resolution 76-701
requesting the Retirement System PJoa.rd to solicit new proposals for
custodial services.
The Trustees advertised for proposals in the Miami Herald and Wall
Street Journal. The proposals received were reviewed at the
Oct. 29, 1976 Trustee meeting. The five (5) lowest bidders were
asked to make oral presentations at the December 17, 1976 meeting.
Based enthese
ts1the
Trustees ed Aamotion
recommend that theRoyalTrustBankofMiami, N. A. beemployed.
: .. • • . 1,4, a
bo
•
' CUSTODIAN MOPOSALS
COMPANY
Swiss American Securities, Inc.
ltoyal Trust Bank of Miami
Mercantile - Safe Deposit & Trust Company 4,036.25
Bankers Trust Company 4,413.12
City National Bank 5,016.79
Citibank 5,068.50
M & T Bank • .5,088.34
Manufacturers Hanover Trust Company 5,224.84
Flagship First National Bank of Miami Beach 7,567,19
7,702.00
Fiduciary Trust Company of New York 7,963.00
Schroder Trust Company „ 7,968.34
4
Southeast Banks Trust Company 8,428.34
Marine Midland Bank 80565.19
Chemical Bank • 8,828.35
Florida .'First National Bank of Jacksonville 9,108.36
Ars .t
First Pennsylvania Bank
$ 2,762.08
3,270.50
Barnett Benks Trust Company 22,991.50
•
T H E
MIAMI CITY EMPLOYEES'
TIU MENT SYSTEM AND PLAN
INVITATION FROM
THE CITY OF rIA,:s , FLORIDA
tOARD OF TRUSTEESFOR-RETIREMENT SYSTEM
PROPOSALS TO ACT AS CUSTODIAN
WECTIVE The Board is interested in Securing written proposals
from qualified entities for the purpose of selecting a Custodian
of the Funds and Securities.
IMF0MATION DATA There are three Money Managers under contract;
two for the equity and one for the fixed
Type Plan - Non-insured, trusteed
itype
ng plary, nnualicodtri utions
determined by cons
tsin
pension fund for investment purpose
Board representing City administration and
City P
Administration - eryemployees
Approximate Assets (Cost) - $49,000,000
PROPOSALS
Please submit your fee schedule, and as a suggestion,
compute what your totesl charges would have been for the second
quarter of 1976 using the following data:•
Duringthe second quarter of 1976, there occurred 188
1976, there were 135 different
transactions. As of June 30,
company issues held of stocks and andbonds; the 706,509par of
value
the
stock were held as of June 30, 1976
bonds was $27,964,000. The total market value of the fund was
$52,866,843.01.
ADDITIOIIAL REQUIREMENTS
The Custodian will be required to:
}Told all stocks and all other registereble securities in the
following registration:
Trustees of the Miami City Employees' Retirement System
Maintain complete records of alltransactions andoprovidesg month
statet..r:nt: of principle and income
e
and all transactions which occurred during the month.
Itwest in short term securities until funds are requested for
behefit payments or there are sufficient funds to Make
distributions to the Money Managers.
Prepare a quarterly reportsummarizing acianvit rs anfdrd determining
the investment performance
quarter.
Collect, receive and deposit all income and other payments)
crediting the account with the proceeds the date the dividend
is payable.
Submit proposals so as to be received not later than Sept. 17) 1976•
Please call me at (305) 579-6371 if additional informa-tion. is needed.
Very truly yours,
Irwin Mazin
'Secretary to the Trustees
ME -