10-18-2018 Commission Meeting Agenda Interim City Manager
City Commission Joanne Carr,AICB
]Enid Weisman,Mayor
Gladys Mezrahi,Vice Mayor ;�p Citi Clerk
Denise Landman,Commissioner ;; ]Elllisa L.Horvath,MMC
Dr.Linda Marks,Commissioner i
Marc Narotslky,Commissioner City Attorney
Robert Shelley,Commissioner � � Weiss Scrota Hellfman
Howard Weinberg,Commissioner e � Cole&Bierman
CITY COMMISSION MEETING AGENDA
OCTOBER 18, 2018
9:00 a.m.
Executive Conference Room
Aventura Government Center
19200 West Country Club Drive
Aventura, Florida 33180
1. CALL TO ORDER\ROLL CALL
2. RESOLUTIONS:
A. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
AVENTURA,FLORIDA,APPOINTING RONALD J.WASSON TO SERVE AS
THE NEXT CITY MANAGER FOR THE CITY OF AVENTURA;
APPROVING AN EMPLOYMENT AGREEMENT BETWEEN RONALD J.
WASSON AND THE CITY OF AVENTURA ATTACHED AS EXHIBIT "A";
AUTHORIZING THE MAYOR TO EXECUTE THE ATTACHED
EMPLOYMENT AGREEMENT; AND PROVIDING FOR AN EFFECTIVE
DATE.
B. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
AVENTURA, FLORIDA APPROVING AVENTURA CHARTER HIGH
SCHOOL DONATION AGREEMENT BETWEEN THE CITY OF
AVENTURA AND GRANITE AVENTURA, LLC; PROVIDING FOR
IMPLEMENTATION; AND PROVIDING FOR AN EFFECTIVE DATE.
C. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
AVENTURA, FLORIDA REVISING CHAPTER 6.6 OF THE
ADMINISTRATIVE POLICY DIRECTIVES AND PROCEDURES MANUAL,
AS ATTACHED HERETO, ENTITLED "INVESTMENT OBJECTIVES AND
PARAMETERS"RELATING TO THE CITY'S INVESTMENT POLICY FOR
THE MANAGEMENT OF PUBLIC FUNDS; AUTHORIZING THE CITY
MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS
OF THIS RESOLUTION;AND PROVIDING FOR AN EFFECTIVE DATE.
3. ADJOURNMENT
This meeting is open to the public.In accordance with the Americans with Disabilities Act of 1990,all persons who are
disabled and who need special accommodations to participate in this meeting because of that disability should contact
the Office of the City Clerk,305-466-8901,not later than two days prior to such proceeding. One or more members of
the City of Aventura Advisory Boards may be in attendance and may participate at the meeting. Anyone wishing to
appeal any decision made by the Aventura City Commission with respect to any matter considered at such meeting or
hearing will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the
proceedings is made,which record includes the testimony and evidence upon which the appeal is to be based. Agenda
items may be viewed at the Office of the City Clerk, City of Aventura Government Center, 19200 W. Country Club
Drive,Aventura,Florida,33180. Anyone wishing to obtain a copy of any agenda item should contact the City Clerk at
305-466-8901.
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
AVENTURA, FLORIDA, APPOINTING RONALD J. WASSON TO SERVE
AS THE NEXT CITY MANAGER FOR THE CITY OF AVENTURA;
APPROVING AN EMPLOYMENT AGREEMENT BETWEEN RONALD J.
WASSON AND THE CITY OF AVENTURA ATTACHED AS EXHIBIT
"A"; AUTHORIZING THE MAYOR TO EXECUTE THE ATTACHED
EMPLOYMENT AGREEMENT; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, Article III of the City Charter of the City of Aventura requires that
there shall be a City Manager who shall be the Chief Administrative Officer of the City
as appointed by the City Commission; and
WHEREAS, following an extensive search the City Commission desires to
appoint Ronald J. Wasson as the next City Manager of the City of Aventura as provided
by Article Ill of the City Charter; and
WHEREAS, the attached Employment Agreement (Exhibit "A") has been
negotiated between Ronald J. Wasson and the City of Aventura; and
WHEREAS, the City Commission desires to authorize the Mayor to execute the
attached Employment Agreement outlining the terms and conditions agreed to by both
parties.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA, THAT:
Section 1. Ronald J. Wasson is hereby appointed to serve as the next City
Manager for the City of Aventura, as of November 14, 2018.
Section 2. The Mayor is hereby authorized to execute the attached
Employment Agreement (Exhibit "A") as approved by the City Commission.
Section 3. This Resolution shall become effective immediately upon its
adoption.
The foregoing resolution was offered by Commissioner , who moved
its adoption. The motion was seconded by Commissioner , and upon being
put to a vote, the vote was as follows:
Commissioner Denise Landman
Commissioner Dr. Linda Marks
Commissioner Marc Narotsky
Commissioner Robert Shelley
Commissioner Howard Weinberg
Vice Mayor Gladys Mezrahi
Mayor Enid Weisman
City of Aventura Resolution No. 2018-
PASSED AND ADOPTED this 18th day of October, 2018.
ENID WEISMAN, MAYOR
ATTEST:
ELLISA L. HORVATH, MMC
CITY CLERK
APPROVED AS TO LEGAL SUFFICIENCY:
CITY ATTORNEY
Page 2 of 2
CITY OF AVENTURA
EMPLOYMENT AGREEMENT
THIS AGREEMENT is made and entered into this 18th day of October, 2018, between
the CITY OF AVENTURA, Florida, a Florida municipal corporation, hereinafter referred
to as the "CITY" or "City" and RONALD J. WASSON, hereinafter referred to as "CITY
MANAGER" or"Ronald J. Wasson", both of whom understand and agree, as follows:
WITNESSETH:
WHEREAS, Article III, Section 3.01 of the Charter of the CITY requires that there
shall be a City Manager who shall be the Chief Administrative Officer of the CITY; and
WHEREAS, the CITY desires to employ the services of Ronald J. Wasson as
City Manager of the City of Aventura as provided by Article III of the City Charter, and in
accordance with this Agreement; and
WHEREAS, the parties have indicated their interest in entering into this
Agreement for the purposes of establishing the basis, framework and context for the
relationship which shall exist between the CITY and CITY MANAGER.
NOW THEREFORE, in consideration of the promises, the mutual covenants,
conditions, provisions and undertakings herein contained, and for other good and
valuable consideration, the parties do mutually covenant and agree with each other as
follows:
SECTION 1.
TERMS AND CONDITIONS -- CITY
1.0 The CITY and City Manager agree as follows:
1.1 The CITY shall employ Ronald J. Wasson as City Manager for a term
hereinafter described consistent with the terms, conditions and covenants of the
Charter of the City of Aventura. Ronald J. Wasson shall commence employment
as City Manager of the CITY on November 14, 2018.
1.2 The City shall pay and compensate the CITY MANAGER for his services
commencing on November 14, 2018, an initial base salary for the first year of
service under this Agreement in the amount of Two Hundred Five Thousand
($205,000) Dollars, payable in accordance with the regularly scheduled method
of compensation for other municipal employees of the CITY.
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1.2.1 For each City fiscal year hereafter, commencing with October 1, 2019, CITY
MANAGER shall receive the standard annual salary increase percentage
amount which is granted to all other general employees of the City.
1.2.2 Using the City's established evaluation criteria and process, the City Commission
shall review and evaluate the performance of CITY MANAGER annually at a
time established by the City Commission. Based on the results of the annual
evaluation, the City Commission may, in its sole discretion, grant a merit salary
increase and/or other benefits upon an affirmative vote of the majority of the City
Commission.
1.3 The City shall take whatever action is reasonably necessary, including executing
the necessary agreements provided by the ICMA Retirement Corporation, to
deposit into the International City Management Association Pension Fund (401
Plan for City Managers) on behalf of the CITY MANAGER an amount equal to
18% of CITY MANAGER'S base salary, in equal proportionate amounts each
pay period, and to transfer ownership to succeeding employers upon CITY
MANAGER'S resignation or termination. CITY MANAGER shall not be required
to contribute to any retirement or deferred compensation fund. However, the
CITY MANAGER may voluntarily contribute a portion of his compensation into a
457 Deferred Compensation plan at no expense to the City.
1.4 The City shall budget and pay for all reasonable and customary professional
dues and subscriptions of the CITY MANAGER which are necessary for his
continuation and full participation in national, regional, state and local
associations and organizations necessary and desirable for his continued
professional participation, growth and advancement, and for the good of the
CITY. (ie: ICMA, FCCMA).
1.5 The City shall provide to the CITY MANAGER a vehicle allowance in the amount
of$500 each month, and a cell phone stipend in the amount of $70 each month.
1.6 The City shall provide and make the required premium payments for health and
hospitalization, major medical, disability, and dental insurance, for CITY
MANAGER and his eligible dependents, if any, through the CITY's group health,
hospitalization, major medical, dental insurance and disability insurance
program.
1.7 The CITY shall provide the CITY MANAGER with the same holidays, vacation,
sick and other leave benefits and accruals as would be accorded any department
head position of CITY, except that the CITY MANAGER shall be provided with
an allocation of a total of twenty (20) days of vacation leave each year, and two
(2) days of personal leave each year.
1.8 The City shall budget and pay for the reasonable and customary travel and
subsistence expenses of the CITY MANAGER for professional and official travel
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and meetings and seminars adequate to continue the professional development
of CITY MANAGER and to adequately pursue his necessary official and other
functions for CITY. Such professional meetings may include the International
City Management Association, Florida City and County Management
Association, National League of Cities, Florida League of Cities, and Miami-
Dade County League of Cities.
1.9 The City shall defend, save harmless and indemnify CITY MANAGER against
any tort, professional liability claim or demand or other legal action arising out of
an alleged act or omission occurring in the performance of his duties as CITY
MANAGER to the fullest extent authorized by applicable law.
1.10 The City shall pay the cost of any bonds required of the CITY MANAGER under
any law, ordinance or the Charter of the City.
1.11 The City Commission may establish such other terms and conditions of
employment, as the Commission may determine from time to time, relating to the
performance of CITY MANAGER, provided that such terms and conditions are
not in conflict with the provisions of this Agreement, the City Charter, or
applicable law.
1.12 The CITY MANAGER will receive all other benefits which the City provides to
department directors in accordance with the City's policies as existing from time
to time.
SECTION 2.
TERMS AND CONDITIONS--CITY MANAGER
2.0 The CITY MANAGER agrees as follows:
2.1 To commence employment with the City on November 14, 2018, as City
Manager of the City of Aventura, Florida, as described herein, and in accordance
with the terms, conditions and provisions contained in the Charter and Code of
the City of Aventura.
2.2 To fulfill the obligations and responsibilities provided for in the Charter and Code
of the City of Aventura and to perform all functions and duties as the Chief
Administrative Official of the CITY in a professional and respectable fashion and
with full decorum historically required of the City Manager of CITY and as
required for City Managers generally in Miami-Dade County, Florida, and the
standards and Code of Ethics of the International City Management Association,
and applicable local, county, state and federal ethics codes.
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2.3 That the position of CITY MANAGER is an exempt position pursuant to the
federal Fair Labor Standards Act. Accordingly, the CITY MANAGER shall do all
things necessary and required to be available to the CITY, its commissioners,
agents, servants and employees during the course of this Agreement consistent
with good and respectable management requirements and as otherwise dictated
and provided by this Agreement, the Charter and Code of Ordinances of the City
of Aventura. The CITY MANAGER agrees to remain in the exclusive employ of
City from November 14, 2018 through the term of this Agreement, and not to be
employed by any other employer, while in the employment of the City, unless
otherwise expressly authorized in writing by the City Commission.
2.4 In the event CITY MANAGER determines to voluntarily resign his position with
the CITY, the CITY MANAGER shall provide CITY with four (4) months written
notice in advance, unless the parties otherwise agree in writing to a different
period of time.
SECTION 3.
TERM
3.0 This Agreement shall be effective from and after October 18, 2018, and shall be
for an indefinite term in accordance with Section 4 of this Agreement. The actual
commencement of employment date of the CITY MANAGER shall be on
November 14, 2018.
SECTION 4.
REMOVAL OF CITY MANAGER
4.0 The CITY MANAGER shall serve at the pleasure of the City Commission. In the
event the CITY Commission wishes to terminate the employment of the CITY
MANAGER it shall do so in accordance with Article III, Section 3.08. of the CITY
Charter.
4.1 In the event CITY MANAGER is terminated by the CITY, the CITY agrees to pay
CITY MANAGER severance pay in an amount equal to sixteen (16) weeks of
salary, plus any accrued sick leave, vacation leave and other accrued benefits.
CITY hereby expressly warrants and represents that said severance payments
shall be paid to CITY MANAGER in a lump sum upon his termination or within
thirty (30) days thereafter. Moreover, once the CITY MANAGER has satisfactorily
served the CITY for a one (1) year period of time following commencing service
on November 14, 2018, the City Commission may, at its sole discretion, increase
the sixteen (16) weeks of severance pay which is described above to a total of
twenty (20) weeks of severance pay. However, in the event CITY MANAGER is
terminated for the conviction of an illegal act or for misconduct as referenced in
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Sec. 215.425(4)(a)(2), F.S., CITY shall have no obligation to pay the respective
sixteen (16) weeks or twenty (20) weeks of severance pay which is referenced
above.
SECTION 5.
GENERAL PROVISIONS
5.0 It is understood and agreed that this document incorporates and includes all
prior negotiations, correspondence, conversations, agreements, or
understandings applicable to the matters contained herein and that the parties
agree that there are no commitments, agreements, or understandings
concerning the subject matter of this Agreement that are not contained in this
document. Accordingly, it is agreed that no deviation from the terms hereof shall
be predicated upon any prior representations or agreements whether oral or
written.
5.1 It is further agreed that no modification, amendment or alteration in the terms or
conditions contained herein shall be effective unless contained in a written
document executed with the same formality and with equal dignity herewith.
5.2 The recitals stated in the preamble to this Agreement are incorporated herein by
reference and shall constitute a part of this Agreement.
5.3 Upon execution by the parties, this Agreement shall be effective immediately
from and after October 18, 2018, and shall be binding upon and inure to the
benefit of the CITY and CITY MANAGER.
5.4 In the event that any provision of this Agreement is found by a court of competent
jurisdiction to be illegal or in conflict with applicable law, the validity of the
remaining provisions of this Agreement shall not be affected or impaired, so that
the provisions of this Agreement are severable.
IN WITNESS WHEREOF, the CITY OF AVENTURA has caused this Agreement to be
signed and executed on its behalf by its Mayor, as duly authorized by Resolution of the
City Commission, and duly attested by its City Clerk, and the CITY MANAGER has
signed and executed this Agreement, on the day and year first above written.
Attest: CITY OF AVENTURA:
By:
Ellisa L. Horvath, MMC, City Clerk Enid Weisman, Mayor
5
Approved as to
Legal Sufficiency for City's Reliance Only.
City Attorney Vy
BONA J. a, ON:I
Bi//
Ronal J. W s
6
CITY OF AVENTURA
OFFICE OF THE CITY MANAGER
MEMORANDUM
TO: City Commission
FROM: Joanne Carr, AICP
Interim City Manag
DATE: October 9, 2018
SUBJECT: Resolution Adopting Donation Agreement
October 18, 2018 City Commission Meeting Agenda Item g
Recommendation
It is recommended that the City Commission adopt the attached Resolution approving
the Aventura Charter High School Donation Agreement between the City of Aventura
and Granite Aventura, LLC.
Background
Granite Aventura, LLC, a property owner in the City, has generously offered to donate
One Million ($1,000,000) Dollars to the City of Aventura, to be utilized by the City for
capital and operating expenses of the Aventura Charter High School.
The donor has offered the donation as an indication of its commitment to be an
important part of the community and to mitigate impacts of additional high school
students that may be generated by its proposed residential development. The donor
recognizes that the City Commission is not obligated to adopt or support the approval of
the development, but that the application will be processed and considered in
accordance with City Code, the City's public hearing process and applicable law.
Attachment
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
AVENTURA, FLORIDA APPROVING AVENTURA CHARTER HIGH
SCHOOL DONATION AGREEMENT BETWEEN THE CITY OF
AVENTURA AND GRANITE AVENTURA, LLC; PROVIDING FOR
IMPLEMENTATION; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Granite Aventura, LLC has graciously offered to donate One Million
Dollars (the "Donation") to the City of Aventura, to be utilized by the City for capital and
operating expenses of the City's Aventura Charter High School which is presently under
construction, for an anticipated school opening in August, 2019; and
WHEREAS, the acceptance of the Donation by the City, in accordance with the
below referenced Donation Agreement, directly serves a municipal public purpose; and
WHEREAS, the City Commission finds that the approval of the Donation
Agreement, substantially in the form attached hereto as Exhibit "A", is in the best
interests of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA, THAT:
Section 1. Recitals Adopted. The above recitals are true and correct and
are incorporated herein by this reference.
Section 2. Approval and Execution of Donation Agreement. The Donation
Agreement (the "Agreement") between the City and Granite Aventura, LLC,
substantially in the form attached hereto as Exhibit "A", together with such non-material
changes as may be acceptable to the City Manager and approved as to form and
legality by the City Attorney, is approved. The City Manager is hereby authorized on
City of Aventura Resolution No.2018-
behalf of the City to execute the Agreement, and any necessary amendments or
addenda thereto.
Section 3. Authorization of City Officials; Execution of Documents. The
City Manager and the City Attorney are each authorized to take any action which is
necessary to implement the terms and conditions of the Agreement, and to prepare,
execute and submit any documents necessary to effectuate the acceptance of the
Donation and carry out the purposes of this Resolution and the Agreement.
Section 4. Effective Date. This Resolution shall become effective immediately
upon its adoption.
The foregoing Resolution was offered by Commissioner , who moved
its adoption. The motion was seconded by Commissioner , and upon being
put to a vote, the vote was as follows:
Commissioner Denise Landman
Commissioner Dr. Linda Marks
Commissioner Marc Narotsky
Commissioner Robert Shelley
Commissioner Howard Weinberg
Vice Mayor Gladys Mezrahi
Mayor Enid Weisman
PASSED AND ADOPTED this 18'h day of October, 2018.
Page 2 of 3
City of Aventura Resolution No. 2018-
ENID WEISMAN, MAYOR
ATTEST:
ELLISA L. HORVATH, MMC
CITY CLERK
APPROVED AS TO LEGAL SUFFICIENCY:
CITY ATTORNEY
Page 3 of 3
DONATION AGREEMENT
FOR THE CITY OF AVENTURA
CHARTER HIGH SCHOOL
THIS DONATION AGREEMENT ("Agreement"), effective this day of
September,2018,is made and entered into by and between:
THE CITY OF AVENTURA, a Florida municipal corporation, at 19200 W. Country
Club Drive,Aventura, Florida 33180,hereinafter referred to as "City";
and
Granite Aventura LLC, a Delaware limited liability company, at 214 West 39th Street,
New York. NY 10018, hereinafter referred to as "Donor" (hereinafter, Donor and City may be
referred to individually as a"Party" or collectively as the"Parties").
WITNESSETH:
WHEREAS, the City is presently engaged in the development and construction of the
Aventura Charter High School (the "High School"),within the City of Aventura; and
WHEREAS, Donor, through Granite Aventura, LLC is presently proceeding to seek
development approvals from the City for a limited-service hotel use combined with a
multifamily residential use (the "Proposed Project" or "Port Aventura") at the property
located at the northwest corner of NE 281h Court and NE 185th Street (folio no: 28-2203-082-
0630) (the "Property"); and
WHEREAS, Donor, as an indication of its commitment to be an important part of the
Aventura community, and to mitigate impacts of additional high school students that may be
generated by the future development of Port Aventura, desires to voluntarily offer to donate One
Million and 00/100 U.S. Dollars ($1,000,000.00) (the"Donation") to the City, to be used by the
City solely for capital and operating costs for the High School.
NOW,THEREFORE, in consideration of the mutual covenants and undertakings of
Donor and the City, and other good and valuable consideration, the Parties covenant and
agree as follows:
1. Recitals. The foregoing recitals are true and correct and are incorporated herein by this
reference.
2. Payment of Donation.
A. Subject to the preconditions set forth herein, Donor shall deliver the Donation to City.
City hereby covenants, confirms, and agrees that the Donation will be used and expended
by the City solely for the purpose of capital and operating costs for the High School.
46087697;1
Should the High School fail to be completed by August 31, 2020, then the City, at its
sole discretion and without providing notice to Donor, shall use the Donation for other
educational purposes within the City's elementary and middle schools.
B. Following the final, non-appealable adoption by City of: (i) the Conditional Use for Port
Aventura project for a limited-service hotel use combined with a multifamily residential
use and (ii) administrative site plan approval for the Port Aventura project (collectively,
the "Approvals"), the Donation shall be paid by Donor in two (2) equal installment
payments of Five Hundred Thousand and 00/100 Dollars ($500,000.00) each, with the
first installment payment to be made within five(5) days of the Approvals and the second
installment payment to be made no later than one (1) year after the first installment
payment is due. Donor recognizes that the City is not obligated to adopt or support the
Approvals, but that City shall simply process, consider and act upon Donor's applications
for such Approvals in accordance with the City Code, City's public hearing process, and
applicable law.
3. Term. The term of this Agreement shall commence upon execution of this Agreement
("Execution Date") and shall thereafter continue until all required Donations are made by
Donor and received and expended by City, as provided herein.
4. Remedies. In the event of Donor's default under this Agreement, City shall be entitled to any
and all remedies under Florida law. In the event City defaults under this Agreement, Donor
shall have all remedies under Florida law. No default shall be deemed to occur unless the
respective Party fails to cure a failure of performance within thirty (30) days after written
notice from the other Party.
5. Recording. Neither this Agreement, nor any notice or memorandum of this Agreement, shall
be recorded in the official records of Miami-Dade County, Florida. The Agreement shall be
binding upon and benefit the Parties and their successors and authorized assigns.
6. Tax Matters. Donor understands that the Donation may enable Donor to claim a deduction
for purposes of United States federal income tax, but recognizes that it must contact and
confer with its own tax attorneys or accountants for matters regarding any entitlement to a
tax deduction, if any, record keeping requirements, and limitations on the amount of any tax
deduction, as well as related issues.
7. Entire Agreement. This Agreement, and any exhibits annexed hereto, constitute the entire
agreement and understanding of the Parties to this Agreement with respect to the subject
matter of this Agreement, and supersedes all prior discussions, correspondence, oral and
written agreements, commitments or understandings, restrictions, representations or
warranties among the Parties to the Agreement concerning the subject matter of this
Agreement other than those set forth herein or herein provided for.
8. Notice. The notices sent to any person pursuant to this Agreement shall be in writing and
transmitted by messenger, certified mail, return receipt requested, or facsimile, and shall be
mailed or delivered as follows:
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46087697;1
As to City: Mrs. Joanne Can
Interim City Manager
City of Aventura
19200 W. Country Club Drive
Aventura, FL 33180
Telephone: (305) 466-8910
Facsimile: (305)466-8919
With a Copy to: City Attorney
Weiss Scrota Helfman Cole&Bierman, P.L.
200 East Broward Boulevard, Suite 1900
Fort Lauderdale, FL 33301
Telephone: (954) 763-4242
Facsimile: (954) 764-7770
As to Donor: Legal Department
Granite Aventura LLC
214 West 391 Street, Suite 1200
New York, NY 10018
Telephone 212-921-7171
Facsimile 212-921-7112
With a Copy to: Mr. Nelsen Kasdin , Esq.
Ackerman LLC
Three Brickell City Centre
98 Southeast Seventh Street, Suite 1100
Miami,FL 33131
Telephone
Facsimile
Any of the foregoing persons listed in this Section 8 may, by notice in writing given to the
other, designate any further or different addresses to which subsequent notices, certificates or
other communications shall be sent. Any notice shall be deemed given on the date such
notice is delivered by hand or facsimile transmission or three days after the date mailed.
9. Applicable Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Florida, as an Agreement made, and entered into, and to be performed in
Miami-Dade County, Florida.
10. Jurisdiction & Venue. The Parties to this Agreement expressly consent to the jurisdiction of
and agree to suit in any State court of general jurisdiction in Miami- Dade County Florida,
and further agree that venue shall lie exclusively in Miami- Dade County, Florida,
3
46087697:
concerning any litigation between the Parties which may arise out of or concern this
Agreement. Further,the Parties hereby waive any right to trial by jury in any such litigation.
I I. Amendments & Waivers. No amendment, supplement, modification or waiver of this
Agreement shall be binding unless executed in writing by all of the Parties hereto. No waiver
of any of these provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision of this Agreement, whether or not similar, unless otherwise expressly
provided. The City Manager shall act for City hereunder.
12. Assignment and Successors. Donor shall not assign its obligations and benefits hereunder
without the prior written consent of the City Commission, which consent shall not be
unreasonably withheld, conditioned or delayed, provided that Donor may make such
assignment to any of Donor's affiliated companies. In the event City gives its consent to
assignment of this Agreement, the assignment shall not be valid unless and until a fully
executed Agreement is entered into between the City and assignee.
13. Miscellaneous.
(a) All of the Parties to this Agreement have participated fully in the negotiation and
preparation hereof, and, accordingly, this Agreement shall not be more strictly construed
against any one of the Parties hereto.
(b)In the event any term or provision of this Agreement be determined by appropriate
judicial authority to be illegal or otherwise invalid, such provision shall be given its
nearest legal meaning or be construed as deleted as such authority determines, and the
remainder of this Agreement shall be construed to be in full force and effect.
(c) In the event of any litigation between the Parties under this Agreement, the prevailing
Party shall be entitled to reasonable attorney's fees and court costs at all trial and
appellate levels.
(d)In construing this Agreement, the singular shall be held to include the plural, the plural
shall be held to include the singular, the use of any gender shall be held to include every
other and all genders, and captions and paragraph headings shall be disregarded.
(e) Except as otherwise expressly provided herein, each Party shall be responsible for its own
costs in connection with this Agreement, including,without limitation, attorney's fees.
IN WITNESS WHEREOF the Parties hereto have made and executed this Agreement on
the respective dates under each signature: THE CITY OF AVENTURA, through its City
Commission, signing by and through the City Manager, duly authorized to execute this
Agreement pursuant to City Commission action on the day of September, 2018, and a duly
authorized officer of Donor signing on behalf of Donor.
[SIGNATURE PAGES TO FOLLOW]
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46087697:1
CITY OF AVENTURA, a Florida municipal
corporation
ATTEST:
By: By:
Ellisa M. Horvath, City Clerk, MMC Joanne Carr , Interim City Manager
(Seal) Dated: day of , 2018.
APPROVED AS TO FORM AND LEGAL
SUFFICIENCY FOR THE USE AND
RELIANCE BY THE CITY OF AVENTURA
ONLY:
By
City Attorney
Weiss Serota Helfman
Cole &Berman, P.L.
ness: Granite Aventura LLC, a Delaware limited
liability company:
Name: e0NN1 6R0SJ
Title: VICE PR.ES 146
Name:b jORA YI bfIS 116 rn(GC) Dated: 28 day of redOL , 2018
\ , itness:
Name:S Cl'-` )4\ \\;\\\\ \ j
5
46087697;1
STATE OF NEW YORK )
ss: )
COUNTY OF NEW YORK )
I HEREBY CERTIFY that on this day before me, an officer duly authorized in the State
aforesaid and in the County aforesaid to take acknowledgments, the foregoing instrument was
acknowledged before me individually, by RONNIE GROSS, Vice President of Granite Aventura
LLC, a Delaware limited liability company, who is personally known to me or has produced his
driver's license as identification.
WITNESS my hand and official seal in the County and State last aforesaid this 281h day
of September,2018.
AI
Otary Pub. C sOIARY PUEUCtSLATE OF NEW YORK
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46087697;1
CITY OF AVENTURA
FINANCE DEPARTMENT
MEMORANDUM a
//perI � �'TO: City Commission `�_
FROM: Joanne Carr, AICP, Interim City Manager
BY: Brian K. Raducci, Finance Director
DATE: October 12, 2018
SUBJECT: Revision to Chapter 6.6 of the Administrative Policy Directives and
Procedures Manual, entitled "Investment Objectives and Parameters"
relating to the City's Investment Policy for the Management of Public
Funds
October 18, 2018 City Commission Meeting Agenda Item aC
RECOMMENDATION
It is recommended that the City Commission adopt the attached resolution revising
Chapter 6.6 of the Administrative Policy Directives and Procedures ("APDP") Manual,
entitled "Investment Objectives and Parameters" relating to the City's investment policy
for the management of public funds.
BACKGROUND
At its October 2, 2018 meeting, the City Commission awarded a contract for the City's
general banking services to TD Bank, N.A. One of the features of the new banking
relationship with TD Bank is that they will pay the City interest at a rate of at least 2% on
funds that exceed our estimated $1.17M compensating balance. Assuming a $10M
target bank balance, a remaining balance of $8.83M would earn interest of
approximately $177k/year. The relationship manager from TD Bank anticipates that it
will take approximately 90 days to ensure a smooth and complete transition from our
current bank to TD Bank.
In light of the timeframe above and due to the current increasing interest rate
environment, staff consulted with Dave Witthohn, the City's investment manager from
Insight Investment to determine what investment options the City may want to consider,
especially during the 90-day transition period. At the same time, it is important that the
City continues to adhere to the three main goals of our investment policy, which are, by
priority: 1) safety of capital, 2) liquidity of funds and 3) investment income, all while
remaining compliant with Section 218.415, F.S.
1
In November and December of 2018, staff anticipates receiving substantial deposits
resulting from the collection of ad valorem taxes related to the 2018 tax year. Due to
the fact that at September 30, 2018, the City was at the maximum portfolio composition
of 50% of the estimated $61.7M portfolio, that is $30.8M, with the Florida Local
Government Surplus Funds Trust Fund (State Board of Administration "SBA"), the City's
investment manager recommended that the City increase its maximum portfolio
composition to 75%. This will provide the City with the flexibility to meet its operational
needs, while maintaining safety of capital and liquidity of funds. In addition, the SBA
was paying an interest rate of 2.97% per year to its participants at September 30, 2018.
Although the City may not fully utilize the maximum portfolio composition of 75%, it
provides another attractive investment option.
This is the only change to the investment policy that staff is recommending at this time.
Staff will invite the Insight investment manager to the January, 2019 City Commission
workshop meeting to provide an economic update, along with a comprehensive review
of the entire investment policy, to determine if any further revisions are warranted at that
time. Insight has been instrumental in assisting the City in developing and periodically
reviewing and revising Chapter 6.6 of the APDP in order to ensure that the City's
investment policy considers current market conditions while remaining compliant with
Section 218.415, F.S. The statute requires that the City must invest its surplus funds
consistent with a written investment plan adopted by the City Commission.
The following revision is recommended to Section V of the investment policy in Chapter
6.6 of the Administrative Policy Directives and Procedures:
F. The Florida Local Government Surplus Funds Trust Fund
(State Board of Administration—SBA)*
Portfolio Composition
A maximum of 5075% of available funds may be invested in the SBA.
Appendix A — Authorized Investments Summary Table is recommended to be
modified to correlate to the revision above.
Please contact the City Manager with any questions you may have.
BKR/bkr
Copy: Eric M. Soroka, CMCS Consulting Services
2
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
AVENTURA, FLORIDA REVISING CHAPTER 6.6 OF THE
ADMINISTRATIVE POLICY DIRECTIVES AND PROCEDURES
MANUAL, AS ATTACHED HERETO, ENTITLED "INVESTMENT
OBJECTIVES AND PARAMETERS" RELATING TO THE CITY'S
INVESTMENT POLICY FOR THE MANAGEMENT OF PUBLIC FUNDS;
AUTHORIZING THE CITY MANAGER TO DO ALL THINGS
NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on June 2, 2009, the City Commission adopted Chapter 6.6 of the
Administrative Policy Directives and Procedures ("APDP") Manual entitled "Investment
Objectives and Parameters"; and
WHEREAS, the City Commission last revised Chapter 6.6 by Resolution No.
2016-59 on October 10, 2016; and
WHEREAS, the City Commission is desirous of amending further the above-
referenced Chapter 6.6 of the APDP Manual.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA:
Section 1. The City Commission hereby revises Chapter 6.6 of the APDP
Manual, as attached hereto, entitled "Investment Objectives and Parameters" relating to
the City's Investment Policy for the management of public funds.
Section 2. The City Manager is hereby authorized to do all things necessary to
carry out the aims of this Resolution.
Section 3. This Resolution shall become effective immediately upon its
adoption.
The foregoing Resolution was offered by Commissioner , who moved
its adoption. This motion was seconded by Commissioner , and upon being
put to a vote, the vote was as follows:
Commissioner Denise Landman
Commissioner Dr. Linda Marks
Commissioner Marc Narotsky
Commissioner Robert Shelley
Commissioner Howard Weinberg
Vice Mayor Gladys Mezrahi
Mayor Enid Weisman
PASSED AND ADOPTED this 18th day of October, 2018.
City of Aventura Resolution No.2018-_
ENID WEISMAN, MAYOR
ATTEST:
ELLISA L. HORVATH, MMC
CITY CLERK
APPROVED AS TO LEGAL SUFFICIENCY:
CITY ATTORNEY
Page 2 of 2
CITY OF AVENTURA 6 6 1
;tea; ADMINISTRATIVE POLICY DIRECTIVES chapter# sub Page
AND PROCEDURES MANUAL
Date May 22,
Issued: 2009
CHAPTER: FINANCE, BUDGET & PURCHASING APPROVED:
City Manager
SUBJECT: INVESTMENT OBJECTIVES AND PARAMETERS
PURPOSE
The purpose of this policy is to set forth the investment objectives and parameters for the management of public
funds of the City. These policies are designed to ensure the prudent management of public funds, the availability
of operating and capital funds when needed and a competitive investment return.
I. SCOPE
This investment policy applies to the investment of public funds in excess of amounts needed to meet
current expenses, which includes cash and investment balances of City funds.
This policy does not apply to the City's pension funds, including those funds in chapters 175 and 185 or
funds related to the issuance of debt where there are other existing policies or indentures in effect which
govern the investment of such funds.
This policy shall be construed and applied so as to comply with Section 218.415, F.S.
II. INVESTMENT OBJECTIVES
Investment objectives include safety of capital, liquidity of funds and investment income, in that order. The
following objectives will be applied in the management of the City's funds:
A. Safety of Capital
The primary objective of the City's investment program is the protection of public funds.
Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the
overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
1. Credit Risk — The City will minimize credit risk, the risk of loss due to the failure of the security
issuer or backer, by:
a) Limiting investments to the safest type of securities;
b) Pre-qualifying the financial institution, broker/dealer, intermediaries and advisors with which the
City will do business;
c) Diversifying the investment portfolio so that potential losses on individual securities will be
minimized.
2. Interest Rate Risk — The City will minimize the risk that the market value of securities in the
APDP 6.6.2
3. portfolio will fall due to changes in general interest rates, by:
a) Structuring the investment portfolio so that securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to
maturity;
b) Investing operating funds primarily in shorter-term securities, money market mutual funds or
similar investment pools.
B. Liquidity of Funds
The City's investment strategy will provide sufficient liquidity to meet the City's operating, payroll
and capital requirements. To the extent possible, an attempt will be made to match investment
maturities with known cash needs and anticipated cash flow requirements. Since all possible cash
demands cannot be anticipated, the portfolio should consist largely of securities with active
secondary or resale markets. A portion of the portfolio also may be placed in money market mutual
funds or local government investment pools which offer same-day liquidity for short-term funds.
C. Investment Income
The City's investment portfolio shall be designed with the intent of attaining a market rate of return
throughout the budgetary and economic cycles, taking into account the City's investment risk
constraints and liquidity needs. Return on investment is of secondary importance compared to the
safety and liquidity objectives described above.
III. PERFORMANCE MEASUREMENT
The investment portfolio will be managed in accordance with the parameters specified within this policy.
The portfolio should obtain a market average rate of return during a market/economic environment of stable
interest rates while insuring sufficient liquidity within the portfolio.
The short-term investment portfolio shall be designed with the annual objective of exceeding the return of
the Florida State Board of Administration LGIP.
The long-term investment portfolio shall be designed with the annual objective of exceeding the return of
the Merrill Lynch 1-3 Year Treasury/Agency Index compared to the portfolio's total rate of return. The
Merrill Lynch 1-3 Year Treasury/Agency Index represents all U.S. Treasury/Agency securities maturing
over one (1) year, but less than three (3) years. This maturity range is an appropriate benchmark based on
the objectives of the City.
IV. ETHICAL STANDARDS
The investment officer and staff, acting in accordance with the written procedures and exercising due
diligence, shall not be held personally responsible for a specific security's credit risk or market price
changes, provided that these deviations are reported immediately and that appropriate action is taken to
control adverse developments.
A. Ethics and Conflicts of Interest
The City's staff involved in the investment process shall refrain from personal business activity that
could conflict with the proper execution and management of the investment program, or that could
impair their ability to make impartial decisions. All employees involved in the investment process shall
APDP 6.6.3
disclose to the City any material financial interests in financial institutions that conduct business with the
City, and they shall further disclose any material personal financial/investment positions that could be
related to the performance of the City's investment program. Applicable ethics standards provided by
the City Charter, City Code, Section 2-11.1 of the Miami-Dade County Code, and Part III of Chapter
112, F.S., shall be complied with.
B. Investments should be made with judgment and care, under circumstances then prevailing, which
persons of prudence, discretion and intelligence exercise in the management of their own affairs, not
for speculation, but for investment, considering the probable safety of their capital as well as the
probable income to be derived from the investment.
C. Designation of Investment Officer
The Finance Director is designated as investment officer of the City and is responsible for investment
decisions and the day-to-day administration of the cash management program. No person may
engage in an investment transaction except as provided under the terms of this policy and the
procedures so established. The City may appoint an outside investment manager as "Agent" for the
City's cash reserves. The "Agent" for the City shall have discretion over the purchase and sale of
securities within and subject to compliance with this investment policy. Such investment manager must
be registered under the Investment Advisor Act of 1940. The Finance Director shall consult with the
City Manager as necessary regarding the City's investment activity.
Positions authorized as investment signatories are the City Manager and Finance Director.
V. LISTING OF AUTHORIZED INVESTMENTS — (SUMMARY TABLE IN APPENDIX A)
The following investments will be permitted by this policy as consistent with Section 218.415 (16) F.S.
Those investments not listed in this section are prohibited.
A. United States Government Securities
Negotiable direct obligations or obligations the principal and interest of which are unconditionally
guaranteed by the United States Government. Such securities will include, but not be limited to the
following:
➢ Treasury Bills
➢ Treasury Notes
➢ Treasury Bonds
➢ Treasury Strips
➢ Treasury Securities—State and Local Government Series ("SLGS")
➢ Treasury Inflation Protection Securities ("TIPS")
Portfolio Composition
A maximum of 100% of available funds may be invested in the United States Government Securities
with the exception of Treasury Strips which are limited to 10% of available funds.
Maturity Limitations
The maximum length to maturity of any direct investment in the United States Government Securities is
seven (7)years from the date of purchase.
APDP 6.6.4
B. United States Government Agencies
Bonds, debentures or notes which may be subject to call, issued or guaranteed as to principal and
interest by the United States Governments agencies, provided such obligations are backed by the full
faith and credit of the United States Government. Such securities will include, but not be limited to the
following:
➢ United States Export— Import Bank
- Direct obligations or fully guaranteed certificates of beneficial ownership
➢ Farmer Home Administration
- Certificates of beneficial ownership
➢ Federal Financing Bank
- Discount notes, notes and bonds
➢ Federal Housing Administration Debentures
➢ FDIC guaranteed notes ("TLGP" bonds)
➢ Government National Mortgage Association ("GNMA")
- GNMA guaranteed mortgage-backed bonds
- GNMA guaranteed pass-through obligations
➢ General Services Administration
➢ New Communities Debentures
- United States Government guaranteed debentures
➢ United States Public Housing Notes and Bonds
- United States Government guaranteed public housing notes and bonds
➢ United States Department of Housing and Urban Development
- Project notes and local authority bonds
Portfolio Composition
A maximum of 50% of available funds may be invested in United States Government agencies.
Limits on Individual Issuers
A maximum of 10% of available funds may be invested in individual United States Government
agencies.
Maturity Limitations
The maximum length to maturity for an investment in any United States Government agency security is
five (5)years from the date of purchase.
C. United States Government Sponsored Agencies
Bonds, debentures or notes which may be subject to call, issued or guaranteed as to principal and
interest by United States Government sponsored agencies which are non-full faith and credit agencies
limited to the following:
➢ Federal Farm Credit Bank ("FFCB")
➢ Federal Home Loan Bank or its City Banks ("FHLB")
➢ Federal National Mortgage Association ("FNMA")
➢ Federal Home Loan Mortgage Corporation ("Freddie-Macs") including Federal-Home Loan
Mortgage Corporation participation certificates
Portfolio Composition
A maximum of 80% of available funds may be invested in Federal Instrumentalities.
APDP 6.6.5
Limits on Individual Issuers
A maximum of 25% of available funds may be invested in any one (1) issuer.
Maturity Limitations
The maximum length to maturity for an investment in any Federal Instrumentality security under this
Section (C) is seven (7) years from the date of purchase. Mortgage backed securities will have
average duration not greater than five (5) years.
D. Interest Bearing Time Deposit or Savings Account
Non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized
under the laws of Florida or the United States provided that such deposits are secured by collateral as
prescribed by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes.
Portfolio Composition
A maximum of 10% of available funds may be invested in non-negotiable interest bearing time
certificates of deposit.
Limits on Individual Issuers
A maximum of 10% of available funds may be deposited with any one (1) issuer.
Limits on Maturities
The maximum maturity on any certificate shall be no greater than one (1) year from the date of
purchase.
E. Repurchase Agreements
1. Invest in repurchase agreements composed of only those investments based on the requirements
set forth by the City's Master Repurchase Agreement. A third party custodian with whom the City
has a current custodial agreement shall hold the collateral for all repurchase agreements with a
term longer than one (1) business day. A clearly marked receipt that shows evidence of ownership
must be supplied to the Finance Director or designee and retained. All firms are required to sign
the Master Repurchase Agreement prior to the execution of a repurchase agreement transaction.
2. Collateralized by full faith or general faith and credit obligations of the United States Government or
United States Government Agency securities. Securities authorized for collateral must have
maturities under five (5) years and with market value for the principal and accrued interest of 102
percent of the value and for the term of the repurchase agreement. Immaterial short-term
deviations from 102 percent requirement are permissible only upon the written approval of the
Finance Director or designee and/or the City's Investment Manager.
Portfolio Composition
A maximum of 20% of available funds may be invested in repurchase agreements excluding one (1)-
business day agreements and overnight sweep agreements.
Limits on Individual Issuers
A maximum of 5% of available funds may be invested with any one (1) institution excluding one (1)-
business day agreements and overnight sweep agreements.
Limits on Maturities
The maximum length to maturity of any repurchase agreement is 90 days from the date of purchase.
APDP 6.6.6
F. The Florida Local Government Surplus Funds Trust Fund
(State Board of Administration —SBA)
Portfolio Composition
A maximum of 597F% of available funds may be invested in the SBA.
G. Intergovernmental Investment Pools
Investment Authorization
Intergovernmental investment pools that are authorized pursuant to the Florida Interlocal
Cooperation Act, as provided in Section 163.01, Florida Statutes and provided that said funds
contain no derivatives.
Portfolio Composition
A maximum of 25% of available funds may be invested in intergovernmental investment pools.
Due Diligence Requirements
A thorough review of any investment pool/fund is required prior to investing, and on a continual
basis. There shall be a questionnaire developed by the Finance Director or designee and/or the
City's Investment Manager that will contain a list of questions that covers the major aspects of any
investment pool/fund.
H. Registered Investment Companies (Money Market Mutual Funds)
Registered with the Securities and Exchange Commission with the highest credit quality rating from a
nationally recognized rating agency; portfolio is limited to direct obligations of the United States
Government or any agency or instrumentality thereof.
Portfolio Composition
A maximum of 35% of available funds may be invested in money market funds.
Limits of Individual Issuers
A maximum of 15% of available funds may be invested with any one (1) money market fund.
Rating Requirements
The money market funds shall be rated "AAAm" or "AAAm-G" or better by Standard & Poor's, or the
equivalent by another rating agency.
Due Diligence Requirements
A thorough review of any money market fund is required prior to investing, and on a continual basis.
There shall be a questionnaire developed by the Finance Director or designee and/or the City's
Investment Advisor/s that will contain a list of questions that covers the major aspects of any money
market fund.
I. Commercial Paper
Commercial paper of any United States company that is rated "Prime-1" by Moody's and "A-1" by
Standard & Poor's (prime commercial paper). If the commercial paper is backed by a letter of credit
("LOC"), the long-term debt of the LOC provider must be rated "A" or better by at least two (2) nationally
recognized rating agencies.
APDP 6.6.7
Portfolio Composition
A maximum of 25% of available funds may be directly invested in prime commercial paper.
Limits on Individual Sectors
A maximum of 10% of available funds may be invested with any one sector.
Limits on Individual Issuers
A maximum of 2% of available funds may be invested with any one issuer.
Maturity Limitations
The maximum length to maturity for prime commercial paper shall be 270 days from the date of
purchase.
J. Corporate Notes
Corporate notes issued by corporations organized and operating within the United States or by
depository institutions licensed by the United States that have a long term debt rating, at the time or
purchase, "A" or better by at least two (2) nationally recognized rating agencies.
Portfolio Composition
A maximum of 25% of available funds may be directly invested in corporate notes.
Limits on Individual Sectors
A maximum of 10% of available funds may be invested with any one sector.
Limits on Individual Issuers
A maximum of 2% of available funds may be invested with any one issuer.
Maturity Limitations
The maximum length to maturity for corporate notes shall be five (5) years from the date of purchase.
K. Taxable/Tax-Exempt Municipal Bonds
Debt obligations of non-profit entities such as states, counties, cities, authorities or other institutions.
These may be taxable or tax-exempt and may be General Obligation (GO's) and/or Revenue Bonds
and must be rated "A" by Moody's, Standard & Poor's or Fitch for long term debt, or rated at least"MIG-
2 by Moody's, SP-2 by Standard & Poor's or F-2 by Fitch.
Portfolio Composition
A maximum of 25% of available funds may be directly invested in Taxable and/or Tax Exempt Debt.
Limits on Individual Issuers
A maximum of 2% of available funds may be invested with any one issuer.
Maturity Limitations
The maximum length to maturity for Taxable and/or Tax Exempt Debt shall be five (5) years from the
date of purchase
APDP 6.6.8
L. Asset Backed Securities
Invest in Asset Backed Securities (ABS) issued by corporations organized and operating within the
United States or by depository institutions licensed by the United States that have a long term debt
rating, at the time of purchase, AAA or the equivalent by at least two (2) nationally recognized rating
agencies.
Portfolio Composition
A maximum of 15% of available funds may be directly invested in ABS.
Limits on Individual Sectors
A maximum of 10% of available funds may be directly invested in ABS of any one industry sub-sector
as defined by Bloomberg Industry Groups.
Limits on Individual Issuers
A maximum of 2% of available funds may be invested with any one issuer.
Maturity Limitations
The maximum length to maturity for ABS shall be (5) 5 years from the date of purchase.
M. Israel Bonds
Direct obligations from the State of Israel denominated in US dollars. Obligations may include, but are
not limited to:
• Institutional-class bonds that are broadly syndicated and registered with the SEC or other US
regulatory agency
• Retail-class offerings that may require safekeeping arrangements, may not be registered by the
SEC or other US regulatory agency and/or may not offer secondary market liquidity
Portfolio composition
A maximum of$150,000.00 in par value may be invested in direct obligations from the State of Israel,
excluding securities guaranteed by the US government through its AID program or any of its agencies.
Maturity Limitations
The maximum length to maturity for Israel bonds shall be three (3) years from the date of purchase.
VI. PROHIBITIONS
The purchase of derivative instruments as defined by the Government Account Standards Board ("GASB")
or any investment instrument which is structured to derive a rate of return from an investment source other
than the originally purchased investment is strictly prohibited.
VII. INVESTMENT PARAMETERS
A. Maturity and Liquidity Requirements
To the extent possible, the City shall attempt to match its investments with anticipated cash flow
requirements. Unless matched with a specific cash flow, the City will not directly invest in securities
maturing more than seven (7) years from the date of purchase. Average life will be used as the
maturity for mortgage-backed securities and the intergovernmental pool investments.
APDP 6.6.9
Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the
portfolio should be continuously invested in readily available funds such as Local Government
Investment Pools, or money market funds to ensure that appropriate liquidity is maintained to meet
ongoing obligations.
VIII. SAFEKEEPING AND CUSTODY
A. Authorized Investment Institutions and Dealers
The City shall only purchase investments from the State Board of Administration, Florida Municipal
Investment Trust, financial institutions which are qualified as public depositories by the Treasurer of the
State of Florida, primary security dealers (or their agents) as designated by the Federal Reserve Bank
of New York, or by secondary securities dealers (or their agents) who act as investment banking arms
of local qualified banking institutions.
All financial institutions and broker/dealers who desire to provide investment services must supply the
following as appropriate and as requested:
1. Annual audited financial statements;
2. Public depository certification;
3. Proof of National Association of Securities Dealer ("NASD") Certification;
4. Certification of having read the City's investment policy;
5. Credit rating provided by a nationally recognized monitoring agency.
B. Delivery vs. Payment
All trades where applicable will be executed by delivery versus payment ("DVP") to ensure that
securities are deposited in an eligible financial institution prior to the release of funds. Securities
will be held by a third-party custodian as evidenced by safekeeping receipts.
C. Master Repurchase Agreement
The investment policy shall require all approved institutions and dealers transacting repurchase
agreements to execute and perform as stated in the Master Repurchase Agreement. All
repurchase agreement transactions shall adhere to the requirements of the Master Repurchase
Agreement.
D. Bid Requirements
Investments will be chosen based on liquidity needs and market conditions. The investments will
be competitively bid when feasible and appropriate. Except as required by law, the bid deemed to
best meet the investment objectives must be selected.
E. Internal Controls
The Finance Director is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal
control structure shall be designed to provide reasonable assurance that these objectives are met.
The concept of reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived and the valuation of costs and benefits requires estimates and
judgments by management.
Accordingly, the Finance Director shall establish a process for an annual independent review as
APDP 6.6.10
part of the annual financial audit to assure compliance with the policies and procedures. The
internal controls shall address the following points:
1. Control of collusion — Collusion is a situation where two (2) or more employees are working in
conjunction to defraud their employer.
2. Separation of transaction authority from accounting and record keeping — By separating the person
who authorizes or performs the transaction from the people who record or otherwise account for the
transaction, a separation of duties is achieved.
3. Custodial safekeeping —All securities, with the exception of certificates of deposit, shall be held with
a third-party custodian; and all securities purchased by, and all collateral obtained by the City
should be properly designated as an asset of the City. The securities must be held in an account
separate and apart from the assets of the financial institution. No withdrawal of such securities, in
whole or in part, shall be made from safekeeping except by the Finance Director as authorized
herein, or by their respective designee.
4. Certificates of Deposit issued by a local bank or savings and loan association may be held in
safekeeping at that institution. The institution shall issue a copy of the certificate of deposit, a
safekeeping receipt, or some other confirmation of the purchase that is satisfactory to the Finance
Director. This will be kept on file in the Finance Department and will indicate the amount, interest
rate, issue date and maturity date of the certificate of deposit.
5. Avoidance of physical delivery securities — Book entry securities are much easier to transfer and
account for since actual delivery is never taken. Physical delivery securities must be properly
safeguarded against loss or destruction. The potential for fraud and loss increases with physically
delivered securities.
6. Clear delegation of authority to subordinate staff members — Subordinate staff members must have
a clear understanding of their authority and responsibilities to avoid improper actions.
7. Written confirmation of telephone transactions for investments and wire transactions — Due to the
potential for error and improprieties arising from telephone transactions, all telephone transactions
should be supported by written communications and approved by appropriate personnel unless an
agreement is executed with a financial institution as discussed in paragraph B.8 below.
8. Development of a wire transfer agreement with a bank or third-party custodian — This agreement
should outline the various controls and security provisions for making and receiving wire transfers.
IX. CONTINUING EDUCATION
The Finance Director and Controller shall annually complete eight (8) hours of continuing education in
subjects or courses of study related to investment practices and products.
X. REPORTING
The Finance Director shall provide a quarterly investment report to the City Manager. The report shall list
investments by fund and type and include the book value, income earned and market value as of the report
date.
APDP 6.6.11
XI. SECURITIES; DISPOSITION
A. Every security purchased under this section on behalf of the governing body of the City must be
properly earmarked and:
1. If registered with the issuer or its agents, must be immediately placed for safekeeping in a location
that protects the governing body's interest in the security;
2. If in book entry form, must be held for the credit of the governing body by a depository chartered by
the Federal Government, the state, or any other state or territory of the United States which has a
branch or principal place of business in this state as defined in s. 658.12, or by a national
association organized and existing under the laws of the United States which is authorized to
accept and execute trusts and which is doing business in this state, and must be kept by the
depository in an account separate and apart from the assets of the financial institution; or
3. If physically issued to the holder but not registered with the issuer or its agents, must be
immediately placed for safekeeping in a secured vault.
B. The City may also receive bank trust receipts in return for investment of surplus funds in securities. Any
trust receipts received must enumerate the various securities held, together with the specific number of
each security held. The actual securities on which the trust receipts are issued may be held by any
bank depository chartered by the Federal Government, this state, or any other state or territory of the
United States which has a branch or principal place of business in this state as defined in s. 658.12, or
by a national association organized and existing under the laws of the United States which is
authorized to accept and execute trusts and which is doing business in this state.
XII. SALE OF SECURITIES
When the invested funds are needed in whole or in part for the purposes originally intended or for more
optimal investments, the City may sell such investments at the then-prevailing market price and place the
proceeds into the proper account or fund of City.
XIII. PREEXISTING CONTRACT
Any public funds subject to a contract or agreement existing on May 1, 2009, may not be invested contrary
to such contract or agreement.
XIV. AUDITS
Certified public accountants conducting audits of the City pursuant to s. 218.39 shall report, as part of the
audit, whether or not the City has complied with section 218.415, F.S., and this Investment Policy.
XV. AUTHORIZED DEPOSITS
In addition to the investments authorized for the City in subsection (VIII), as authorized by paragraph (23) of
Section 218.415, F.S., the City may deposit any portion of surplus public funds in its control or possession
in accordance with the following conditions:
A. The funds are initially deposited in a qualified public depository, as defined in s. 280.02, selected by the
APDP 6.6.12
City.
B. The selected depository arranges for the deposit of the funds in certificates of deposit in one (1) or
more federally insured banks or savings and loan associations, wherever located, for the account of the
City.
C. The full amount of principal and accrued interest of each such certificate of deposit is insured by the
Federal Deposit Insurance Corporation.
D. The selected depository acts as custodian for the City with respect to such certificates of deposit issued
for its account.
E. At the same time the City's funds are deposited and the certificates of deposit are issued, the selected
depository receives an amount of deposits from customers of other federally insured financial
institutions, wherever located, equal to or greater than the amount of the funds initially invested by the
City through the selected depository.
XVI. PROHIBITED INVESTMENTS
The City is prohibited from investing in any company that engages in business with the countries of Iran
and Sudan. The City Manager may promulgate specific requirements for the implementation of this
provision based upon criteria applied by the Local Government Surplus Funds Trust Fund for such
purpose.
XVII. INVESTMENT POLICY REVIEW
The Finance Director shall review this Investment Policy on an annual basis. Any recommended changes
to this policy must be approved by the City Manager and subsequently by the City Commission. However,
upon the initial approval of this Investment Policy by resolution of the City Commission, this Investment
Policy shall be amended by the City Manager without the necessity of further action by the City
Commission, to the extent that said amendments are necessary for conformance with any amendments
made to Section 218.415, F.S.
Originally Adopted —June 2, 2009 (Resolution No. 2009-30)
Revised—September 22, 2009 (Ordinance No. 2009-17)
Revised— November 1, 2011 (Resolution No. 2011-61)
Revised—July 8, 2014 (Resolution No. 2014-33)
Revised—October 10, 2016 (Resolution No. 2016-59)
Revised—October 18, 2018 (Resolution No. 2018-tbd)
*Investments managed internally by City staff, not managed by Investment Advisor
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