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11-19-2020 Special Commission Meeting Agenda City Manager City Commission Ronald J.Wasson Enid Weisman,Mayor Jonathan]Evans,Commissioner ;;! City Clerk Rachel S.]Friedland,Commissioner E11isa L.LTorvarl� MMC Denise Landman,Commissioner j Dr.Linda Marks,Commissioner City Attorney Marc Narotsky,Commissioner �� Weiss Scrota Hellman Robert Shelley,Commissioner e � Cole&Bierman CITY COMMISSION SPECIAL MEETING AGENDA NOVEMBER 19, 2020 9:00 a.m. Via Virtual Communications Media Technology This meeting shall be held via virtual communications media technology as made necessary by the continued state and local emergency. Because of the continued COVID-19 pandemic, and the need to ensure the public health, safety and welfare, this meeting will be conducted remotely via Zoom. Due to the on-going state of emergency and the recommendations from all public health authorities, the City of Aventura recommends that all persons view and participate in the meeting through electronic means. Members of the public wishing to access the meeting, please do so as follows: Join the Zoom Meeting from your computer, tablet, or smartphone at: Zoom.us/join Meeting ID: 821 0209 7172 You can also dial in using your phone to the any of the following numbers: +1 312 626 6799 US (Chicago) +1 929 205 6099 US (New York) +1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) +1 253 215 8782 US +1 301 715 8592 US Meeting ID: 821 0209 7172 Members of the public will be able to provide comments via audio when directed by the Mayor to do so. Please tap the screen on your cellphone or tablet, or move your mouse on your computer, to view an option to raise your hand. Tap or click on the "raise hand" icon displayed to raise your hand to speak. Callers must press *9 to raise your hand to speak. The City Clerk will notify the Mayor there are public comments and will notify you when it is your turn to speak by turning your microphone on. Speakers will be provided three minutes to provide comments. Comments can also be provided via email to the City Clerk at cityclerk@cityofaventura.com by November 9, 2020 at 6:00 p.m. Comments received will be provided to the City Commission. Please list the item you are providing a comment for in your email. City Manager City Commission Ronald J.Wasson ]Enid Weisman,Mayor ��� Jonathan]Evans,Commissioner City Clerk Rachel S.Friedland,Commissioner „: Elllisa L.Horvath,MMC Denise Landman,Commissioner � Dr.Linda Marks,Commissioner City Attorney Marc Narotsky,Commissioner Weiss Scrota IdeiF7nan Robert Shepley,Commissioner e�✓ Cole&Bierman CITY COMMISSION SPECIAL MEETING AGENDA NOVEMBER 19, 2020 9:00 a.m. Via Virtual Communications Media Technology 1. CALL TO ORDER\ROLL CALL 2. ORDINANCE - SECOND READING/PUBLIC HEARING: AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING CHAPTER 36 "RETIREMENT", ARTICLE II "POLICE PENSION PLAN AND TRUST FUND", BY AMENDING SECTION 36-31 "COMPLIANCE WITH INTERNAL REVENUE CODE", TO PROVIDE FOR COMPLIANCE WITH THE SECURE ACT; PROVIDING FOR REPEAL; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; 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 or cityclerk@cityofaventura.com, not later than two days prior to such proceedings. One or more members of the City of Aventura Advisory Boards may participate in 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 are available online at cityofaventura.com for viewing and printing,or may be requested through the Office of the City Clerk at(305)466-8901 or cityclerk@cityofaventura.com. CITY OF "ENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission _ FROM: Ronald J. Wasson, City Manager — DATE: November 6, 2020 SUBJECT: Ordinance that Amends Chapter 36 "Retirement," Article II "Police Pension Plan and Trust Fund," to Comply with the Recently Enacted Setting Every Community Up for Retirement Enhancement ("SECURE") Act November 10, 2020 City Commission Meeting Agenda Item 913 November 19, 2020 City Commission Special Meeting Agenda Item 2 RECOMMENDATION It is recommended that the City Commission approve the attached Ordinance that amends the "Police Pension Plan and Trust Fund" (the "Plan") in a manner consistent with federal tax law changes made in accordance with the recently enacted SECURE Act. The Ordinance was drafted by the Plan's attorney and the Police Pension Board has requested that this Ordinance be adopted. It was reviewed by the City Attorney. BACKGROUND On December 20, 2019, the federal SECURE Act was signed into law, which included several changes to the Internal Revenue Code designed to encourage employee retirement saving. Among the changes is an increase in the age for required minimum distributions ("RMDs") from 70 '/2 to 72. RMDs are the minimum amounts an employee must annually begin receiving from the Plan, with the rationale being that the deferred tax treatment of retirement benefits has its temporal limits. Before the SECURE Act, plan members could delay taking RMDs until age 70 '/2. The SECURE Act increased the age to 72, with a January 1, 2020 effective date. Therefore, for those employees who turn 70 '/2 on and after January 1, 2020, the RMD is age 72. For those employees who already reached 70 '/2 before January 1, 2020, the old rule applies so they are not affected by the change. SUMMARY The Ordinance reflects the increase in age for RMDs to 72, and also reflects the effective date of the SECURE Act by making the change inapplicable to those plan members who reached age 70 '/2 before January 1, 2020. All other provisions of the Plan remain in full force and effect. CCO1942-20 AWIF FOSTER& FOSTER Caw October 19,2020 VIA EMAIL ---------------------- Ms. Lauri Patterson Benefits USA 3810 Inverrary Blvd., Suite 303 Lauderhill. FL 33319 Re: City of Aventura Police Officers' Retirement Plan In response to your email dated October 13, 2020, we have reviewed the proposed Ordinance amending the plan to increase the required minimum distribution age frorn 70 12to 72 for those who have not reached age 70 V2on December 31, 2019, as required by the Internal I-' evenue Code. We have determined that its adoption will have no impact on the assumptions used in deten-nining the funding requirements of the program, Because the changes do not result in a change in the valuation results, it is our opinion that a fonnal Actuarial Impact Statement is not required in support of its adoption. However, since the Division of Retirement must be aware of the current provisions of all public pension programs, it is recommended that you send a copy of this letter and a copy of the fully executed Ordinance to each of the following offices; Mr. Keith Brinkman Mr. Steve Bardin Bureau of Local Retirement Systems Municipal Police and Fire Division of Retirement Pension Trust Funds P. O. Box 9000 Division of Retirement Tallahassee, FL 32315-9000 P.O. Box 3010 Tallahassee, FL 32315-3010 The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein, If you have any questions, please let me know. Sincerely, Patrick T. Donlan, ASA, EA, MAAA 13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 - (239) 433-5500 - Fax (239) 481-0634 - nww.foster-foster.com ORDINANCE NO. 2020- AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING CHAPTER 36 "RETIREMENT", ARTICLE II "POLICE PENSION PLAN AND TRUST FUND", BY AMENDING SECTION 36-31 "COMPLIANCE WITH INTERNAL REVENUE CODE", TO PROVIDE FOR COMPLIANCE WITH THE SECURE ACT; PROVIDING FOR REPEAL; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Aventura (the "City") maintains a defined benefit pension plan for its certified police officers, which is known as the City of Aventura Police Officers' Retirement Plan ("Retirement Plan"), and which is codified in Chapter 36 of the City Code; and WHEREAS, the Setting Every Community Up for Retirement Enhancement ("SECURE") Act, signed into law on December 20, 2019, amended the definition of "Required Beginning Date" under Section 401(a)(9) of the Internal Revenue Code; and WHEREAS, amendments to the Plan are necessary to conform the Retirement Plan to the requirements of the SECURE Act; and WHEREAS, the Board of Trustees of the City of Aventura Police Officers' Retirement Plan has recommended an amendment to the Retirement Plan to comply with the SECURE Act; and WHEREAS, the trustees of the City of Aventura Police Officers' Retirement Plan have requested and approved the amendments provided herein as being in the best interests of the participants and beneficiaries and improving the administration of the Plan; and WHEREAS, the City Commission has received and reviewed an actuarial impact statement related to this change and attached as such; and WHEREAS, the City Commission deems it to be in the public interest to provide this change to the Retirement Plan for its police officers; NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA'- Section 1. That each of the above-stated recitals are hereby adopted and confirmed. Words in strikeett type are deletions from existing text and words in underline type are additions to existing text. City of Aventura Ordinance No. 2020- Section 2. That Chapter 36 "Retirement," Article II "Police Pension Plan and Trust Fund," Section 36-31, "Compliance with the Internal Revenue Code", subparagraph (b), Required beginning date, of the City Code of Ordinances be amended as follows- Sec. 36-31. - Internal Revenue Code Compliance. (b) Required beginning date. Notwithstanding any other provision of the plan, payment of a participant's retirement benefits under the plan shall commence not later than the participant's required beginning date, which is defined as the later - - (1) With regard to distributions required to be made to a participant who reaches age 70'/2 before January 1 , 2020: April 1 of the calendar year that next follows the calendar year in which the participant attains or will attain the age of 70'/2 years-, or April 1 of the calendar year that next follows the calendar year in which the participant retires.-, whichever is later. (2) With regard to distributions required to be made on or after January 1. 2020 to a participant who reaches the age of 701/2 on or after said date: April 1 of the calendar year that next follows the calendar year in which the participant attains or will attain the age of 72 years, or April 1 of the calendar year that next follows the calendar year in which the participant retires, whichever is later. Section 3. Repeal. All sections or parts of sections of the Code of Ordinances of the City of Aventura, all ordinances or parts of ordinances, and all resolutions or parts of resolutions in conflict herewith, be and the same are hereby repealed to the extent of such conflict. Section 4, Severability. Should any section or provision of this Ordinance, or any paragraph, sentence or word, be declared by a Court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof, as a whole or a part hereof, other than the part declared to be invalid. Section 5. Inclusion in the Code. It is the intention of the City Commission of the City of Aventura that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City of Aventura and that the sections of this Page 2 of 4 City of Aventura Ordinance No. 2020- Ordinance may be renumbered or relettered and the word 'ordinance" may be changed to "Chapter", "Section", "Article", or such other appropriate word or phrase, the use of which shall accomplish the intentions herein expressed. Section 6. Effective Date. This Ordinance shall be effective upon passage by the City Commission on second reading. The foregoing Ordinance was offered by Vice Mayor Shelley, who moved its adoption on first reading. This motion was seconded by Commissioner Dr. Marks and upon being put to a vote, the vote was as follows: Commissioner Jonathan Evans Yes Commissioner Rachel S. Friedland Yes Commissioner Denise Landman Yes Commissioner Dr. Linda Marks Yes Commissioner Marc Narotsky Yes Vice Mayor Robert Shelley Yes Mayor Enid Weisman Yes The foregoing Ordinance was offered by Commissioner who moved its adoption on second reading. This motion was seconded by Commissioner and upon being put to a vote, the vote was as follows: Commissioner Jonathan Evans Commissioner Rachel S. Friedland Commissioner Denise Landman Commissioner Dr. Linda Marks Commissioner Marc Narotsky Vice Mayor Robert Shelley Mayor Enid Weisman PASSED on first reading this 10t" day of November, 2020. PASSED AND ADOPTED on second reading on this 19t" day of November, 2020. Page 3 of 4 City of Aventura Ordinance No. 2020-_ ENID WEISMAN, MAYOR ATTEST: ELLISA L. HORVATH, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY Page 4 of 4