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11-14-2007 Workshop City Commission Workshop Meeting .._._..".....l..l,,,,, H ... ... ~. ',' '.' "..... ~"'."",.~ 19200 West CountrY C'luh Drive Aventura FL 111 RO November 14, 2007 2:00 P.M. Executive Conference Room AGENDA 1. Library Project Update (City Manager) 2. Property Tax Reform Update (City Manager) * 3. Community Services Advisory Board (City Manager)* Future Action Required: Resolution 4. City Sponsorship for Federal Grant to Assist Point East Condominium Association with Seawall Restoration (City Attorney) * 5. Iran Divestment Advocacy (Commissioner Auerbach) * 6. Discussion on Election Date (City Manager) * 7. Adjournment * Back-up Information Exists 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. Proposed Constitutional Amendments The following is a summary of the package passed by the Legislature: 1. Doublina the Homestead Exemption . Creates an additional homestead exemption worth $25,000, applied to home value above $50,000. . This exemption will not apply to school tax levies. 2. Full Portability . Allows homeowners to transfer their SOH benefit to a new homestead anywhere in Florida within 2 years of leaving their former homesteads. . Individuals that sold their homes in 2007 can transfer their SOH benefit to a new homestead if they establish the new homestead by January 1, 2009. . If "upsizing" to a home of equal or greater just value, the homestead owner can transfer 100% of the SOH benefit to the new homestead, up to a $500,000 transferred benefit. . If "downsizing" to a home with a lower just value, the homestead owner can transfer a SOH benefit that protects the same percentage of value as it did the former homestead, up to a $500,000 benefit. . The transferred SOH benefit will apply to all taxes, including school taxes. 3. Provides an assessment arowth limitation of 10% for all non-homestead properties . This assessment limitation does not apply to school tax levies. . The assessment limitation will expire in 10 years. At that time voters will decide whether or not to reauthorize it. . Residential properties of nine units or less will surrender accumulated protections at the change of ownership or control, as defined by general law. . For all other properties (i.e. residential properties of ten or more units and business properties), the Legislature must define by general law how the property will surrender protections when there is a "qualifying improvement" to the property. The Legislature may define by general law how the property will surrender the accumulated protections at a change of ownership or control. 4. Creates a Tangible Personal Property Exemption of $25,000 . This exemption applies to all tax levies 5. Requires an annual appropriation to fiscally constrained counties to offset revenue reductions that result from the constitutional amendment. CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORANDUM FROM: Eric M. Soroka, ICMA-CM, Ci TO: City Commission DATE: November 8, 2007 SUBJECT: Selection of Community Services Advisory Board Members The terms of the Community Services Advisory Board will have expired. The City Commission requested the City Administration to solicit individuals who wish to serve on the Board. In addition to the following individuals who currently serve on the Board, two new applicants have filed for candidacy. Current Members: Julie R. Israel Melvin Taks - Vacancy Gary Pyott Evie Hernandez Amit Z. Bloom Jonathan P. Evans Ruthe Cohen Applicants: Michael Yavner Julian Orlansky I have placed this matter on the Workshop Agenda for action by the City Commission. EMS/act Attachment CC01602-07 CITY OF AVENTURA APPLICATION FOR COMMUNITY SERVICES ADVISORY BOARD Potential board members must be registered voters who have resided in the City of A ventura for six (6) months immediately prior to an appointment to the Board. Applicants must have expressed interest and/or experience in landscape design and architecture, beautification projects, youth and/or senior citizen programs, recreation activities, culture and the arts. Name of Applicant: ~ ~2t<' (Please Print) Address::2/3?b ~M tv. rc-lr #C/~ Home Phone: 305 fJJ 3877 Email Address:Jvo(~...=>J.~.ll @ NI-~-. Ctrl , Business Name: tJ" (thcJ-t'J Trv s t Occupation: ~(.J\ ltk ~J." \SO~ Business Address: li''lO'l ~E..- 2-'\~ ~"-Nv.e. ~"c..,..I"t'o"..)(A. 4~cdw~ / Business Phone: 505. l' \. g. (.. 00 , Fax: 305-" 3l. 5..s 71 Qualifications: (Briefly describe the specific expertise and/or abilities you can contribute as a member of this Board.) rArk~ (// I!'/' (}/f// / e. f1/f"/f/CJ? , List community or civic involvement: (~ c 1/,';>;f1.f,/ .../ Please attach a resume along with your application. I understand that in accordance with the State of Florida Government in the Sunshine Law, this information may be made public. I understand that all board appointments are for voluntary, uncompensated services and I will be subject to the requirements of the State of Florid Financial Disclosure Requirements. Fax or Mail completed application & resume to: Office of the City Manager Government Center 19200 West Country Club Drive, Aventura, FL 33180 (305) 466-8910 (305) 466-8919 fax Michael S. Yavner 21376 Marina Cove Circle # C14 Aventura, Florida 33180 305.778.3476 · Renvay@aol.com PROFILE Top producing consultant and sales representative within highly competitive financial industry. PROFESSIONAL EXPERIENCE Northern Trust, N.A., Aventura / Miami, Florida Wealth Strategist 2002 - Prcscll t . Establ1sh relationships with new prospects. Present asset allocation plans, investment solutions ,1Ile! servIces in calling presentations to acquire new clients. . Mamtain ongoing contact with clients and promote relationship enhancement opportunities throug.h knowledge of estate and financial planning matters. . Cultivate center of influence contacts for referrals and to strengthen Northern competitive advanUlgc' in marketplace. . Cross sell investment and trust relationships to existing bank clients. . Cultivate institutional business in the not for profit sector, including institutional custody. . Assist prospects and clients with estate planning ideas. Secure future fee appointments. UBS PaineWebber, Aventura, Florida Financial Advisor I Retirement Plan Consultant 2000 - 2002 . Design, develop and deliver marketing campaigns to attract and retain clients. Serve high net worth clients, corporations, and individual investors. . Build relationships and drive business through new accounts, portfolio review, and prospecting. . Develop asset allocatlOn guidelines to maximize investor return while minimizing risk. . Provide infornlation on retirement plans, including 401 (k) plans, brokerage services, managed account services, stocks, fixed income securities, estate planning, insurance, variable annUlties, ~lIId lending products. . Established relations with institutional clients; successfully prospected and landed several defincd bene!]t and defined contribution plans. Acted as main contact person for accounts. . Generated a high number of referrals and repeat business by providing excellent service and fol10w- up. . Conducted sales meetings for new Financial Advisors and helped train new recruits PRliDE:\ITIAL SECURITIES, Aventura, Florida Financial Advisor 1996 - 2000 . Prospected and serviced individual investors and high net worth clients. . Gathered assets and developed asset allocation guidelines and implemented strategies to provIde income, enhance wealth, and minimize risk. . Provide information on brokerage services, stocks, mutual funds, and fixed income securitIes. . Consistently met and exceeded asset gathering and sales quotas . Ranked in top quartile in nation for new trainees. Mic/we! S YII\'!ler Page 2 A 1'&'1', Gainesville, Florida Assistant Manager / Communications Sales Associate 1995 -1996 . Received promotion from sales associate to assistant manager . Conducted effective sales management meetings and motivated sales associates I'A {'L WEST FORD / MITSUBISHI, Gainesville, Florida Finance Internship Summer 1995 . Extensive overview of dealership sales, finance and sales management. . Develop and implement sales campaign with dealer / owner . Sales Finance Manager of the Month EDUCATION lJnivcrsity of Florida, Gainesville, Florida r-3achclor of Scicnce - Business Administration I'vlajor - Marketing! Minor - Finance LlCENSURES / CERTIFICATIONS CTF.A - Certi Cied Trust Financial Advisor - American Bankers Association Serics 7, Serics 63, Series 65, Life and Variable Annuity PROFESSIONAL / CHARITABLE AFFILIATIONS A ventura Marketing Council- A ventura Young Professionals, Chairman Mount Sinai Founders Board Member Victory School for Children, Board Member Ami-Defamation League City ofrlope Walk for Hope, Chairman !\mcrican Cancer Society Creater Miami Jewish Federation Board Member COMPUTER SKILLS Microsoft Office, Word, Excel, Outlook, Power Point, Lotus Suite, Windows NT, and Internet Jun 29 07 10:09a p. 1 '7 r k&-e~ -r&fl'AV .,,'\\11/,.- '...... .; !,~ , - I,,: \ '1-, I " ~, .. j i *,.._L..:..: _:' .......':::-.. 0:.. _:- ~-, <....~,," . ,} I' 1)\'> .-" . I' " CITY OF AVENTURA APPLICATION FOR COMMUNITY SERVICES ADVISORY BOARD Potential board members must be registered voters who have resided in the City of I t ventura for six (6) months immediately prior to an appointment to the Board. Applicants must have ex! \'"essed interest and/or experience in landscape design and architecture, beautification projects, yOUl 11 and/or senior citizen programs, recreation activities, culture and the arts. Name of Applicant: -:J U L l 41J tJ f- 1, A:rJ Cj f(. y . -?~ . I (Please Print) ~ 7 ') 7 Address: -j '71 S No CoLlNTt'{ CLV1? ptz- d. Home Phone&O~) 79l-0155 Email Address: -:JOrz.I.-A-N7^'~I/ @ /1(/)tl1.41 L-" C~ ( Business Name: I~ Pi otJt,. 1/ L ~ rf 11,4-rti? L. ~Occupation: A1V ;f11 fl?C1I/Il.-ltv t? IV /71 Olt/ q ./ -,. MA1V A- G f:?f(, Business Address: ' 97 ([) /ViA) 77 A ve, MfM11 { . rL 37 ot ft, Business Phone:{? "b t;:2- 7 . 7 7 "' 0 Fax:~?' i/ () 152- It ~ rOb '7 Qualifications: A (LC HI 'ftt;?C(v!--e- $ PMiG-llJ MCfCm~,O(/V9 (Briefly describe the specific expertise and/or abilities you can contribute as a IT l!mber of this Board,) ('f7;tcrt1?l-OrZ- ~~ IA; /HUH rrr;;;-C'r(/({A?~r Ul2-17tV1J fvMWl6 ~-r/)fJ71 ~ (I~ kJtCUI~r. 0Cf:{O-Ul--)/ M.,1 rJattl-Cj7~/ t:<C-~/(~Nf UJl/Pe'~71A-NVt'AJ~ op 1;;1'e(L.{~1U 1?e:'?~ q L--A''/Jf?7Q4J PIA/(;?t:e7i6tl !</VliL/lLf?T7 ItV COt"fJ '71 rt--u~ I -.. T/-f.~ List community or civic involvement: VOl- () M I~ l tV r~ ~{tV6 ~t:iL.;~ I VO l-U~ 'f1'?i!fL-. C1J /}CJ1 oy G II-I.--" {-()cX f'1 eM f'H IS. :J c-c-) I H.irf7 (rU POlL- til/MIJ1V I 'tV Vl7L-{;I!J~ HO{/Swt'J 1>) Please attach a resume along with your application. ( >"- I understand that in accordance with the State of Florida Governmen ' in the Sunshine Law, this information may be made public. I understand that all boar:f appointments are for voluntary, uncompensated services and I will be subject to the ref. ,uirements of the State of Florida Financial Disclosure Requirements. .~~ b/~~~o7 Sig~a~ol APpl~t Date Fax or Mail completed application & resume to: Office of the City Manager Government Center 19200 West Country Club Drive, Aventura, FL 33180 (305) 466-8910 (305) 466-8919 fax Jun 29 07 10:10a p.2 Julian S. Orlandcy 3375 N. Country Club Dr., #707 Aventura FL 33180 (305) 792-0455 jolt~n8ky@botmaiLeom Team player and problem solver with highly developed analytical, (Irganizational, communications, and planning skills; with a strong technical and busi 'less background. TROPICAL TILE & MARBLE 2003-Present (Miami~ "FL) Architectural Division Mana2er . Establish relationships with architectural & interior design firms, developer), general contractors and sub contractors throughout South Florida. . Conduct presentations to promote company's product lines (porcelain tiles and natural stones) and develop product training. . Generate specifications for residential and commercial projects (through ar::hitects and designers) . . Manage all projects that are specification driven throughout the constructi.m stages (to insure excellent service to customers). . Manage the delivery logistics and scheduling to job sites. VP BUILDINGS (Varco Proden International) 1998-2002 (Memphi:, TN/Miami, FL) International Sales Manae:er . Developed sales of pre-engineered metal buildings and components throu~ hout the world. . Actively worked on a worldwide marketing plan. . Developed and maintained a customer/distribution network . Conducted sales and product training for the Latin Americanjoin venture~.. . Acted as project manager from early design stages until the metal bui] ding construction was completed. AMERICAN BUILDINGS COMPANY 1995-1998 (Houstor,. TX) Remonal Sales Manae:er. Latin America & Caribbean: . Developed sales and marketing strategies of pre-engineered metal buildinl ~s for the region. . Created customer base through qualified builders, developers and industri tal. parks. . Assisted managing the entire export and logistics process. GOTSDINER ARCIDTECTS 1991-1994 (HoustOII. TX) Proiect Manae:er . Designed and produced construction documents and specifications for co mmercial and residential projects. . Interacted directly with clients, contractors and sub-contractors to insure projects went as planned. . Regularly visited job sites to supervise construction stages and finishes. MAKI 52 (DEVELOPERS) 1989-1991 (Housto rl, TX) Proiect Manae.er . Developed projects for connnercial and residential buildings in Guam. . Assisted in the logistics of sending construction materials from the U.S. 10 Guam. Jun 29 07 10:10a p.3 Julian S. Orlansky - Page 2 SKILLS: . ADDlieation Packae:es: Windows, MS- Word, MS-Excel, MS-Access, MS. .PowerPoint, MS- Outlook, AutoCAD, ACT. . Lane:uae:es: Bilingual (English/Spanish). conversational Portuguese. OTHER: . Traveled extensively worldwide while doing business with construction COI npanies. Captain of the Tennis Team during High School & College. National Honor Society. EDUCATION: 2001 Graduate Management Program; Florida International Uni ,rersity (flU) (International Business & International Marketing) 1988 Bachelor of Architecture University of Buenos Aires, Argentina Professional Courses & Seminars: 1995 Houston Conununity College; Residential Construction Sel ninar 1994 Southern Methodist University; Mid-Management Program 2004 Miami Dade Community College; General Contracting ec,urse ..j~~ wi ,f-Itl ~Ol J'~-3 November 13,2007 20400 West Country Club Dr., #215 A ventura, FL 33180 Eric M. Soroka, City Manager City of A ventura 19200 West Country Club Drive Aventura, FL 33180 Dear Mr. Soroka: I would like to submit my name for consideration as a candidate to the A ventura Community Services Advisory Board. As a resident of A ventura for 9 years, I feel fortunate to be part of this beautiful and progressive community. Presently, I am employed as a journalist for the South Florida Sun Times and A ventura Digest and write a column and news articles regarding the city. This experience, working actively in the public sector, has given me insight to ongoing city projects such as cultural events, aesthetic projects and recreational events. I have come in contact with many residents, business leaders and elected officials responsible for building our community. During media interviewing or in casual conversation, I have been able to erudite and absorb information pertaining to the city and feel confident of relaying suggested ideas to the Advisory Board for discussion and recommendation. My academic background in the visual arts has given me an appreciation of this medium and the enrichment within oneself. Thank you for your time and consideration. I look forward to hearing from you. Sincerely yours, ::baud Uclal! David Udoff Encl: Resume David M. Udoff 20400 West Country Club Drive #215 Aventura, FL 33180 Tel: (305) 778-4801 E-mail: dmu088@yahoo.com Professional Experience: South Florida Sun Times/ A ventura Digest Journalist/Photographer (2006-Present) . Author of various newspaper columns, advertorials and reported on city and community events. Expansion of newspaper stories and act as a popular voice in the community. . Conduct interviews with business personalities, government entities and residents. Perform reporting to ascertain details and clarify actual facts and anecdotes for the columns. . Interpret and organize research from articles, books, magazines, recorded interviews and internet. Extract all pertinent audio, visual and written communications and synthesize into concise interesting written news articles. . Produce photographs of people, business products/services, cultural events and citywide infrastructure. . Creative thinking in advertising and developing marketing text with images. City of Sunny Isles Beach, Sunny Isles Beach, FL Administrative Coordinator (2003 - 2005) . Performed all the necessary administrative duties including special projects related to leisure activities, events and tourism. . Strong ability to focus on projects and produce results. . Utilized computer software skills to prepare correspondence, reports, charts, tables and forms. Implement and planned budget, accounts payable/receivable responsibilities, managed filing, documents and installed photographs and documents in the digital library. . Wrote and edited an ongoing newspaper column published in the Sunny Isles Beach Sun detailing the tourism, recreation activities, architectural history and noted personalities. . Produced and edited digital photographs of the City's infrastructure, parks and recreation and events for use in City publications, newspaper, TV broadcasts, website, and visual presentations at town hall meetings. Texture Interiors, A ventura, FL Artist/Owner (1993 - 2003) . Specialized in interior decorative arts, painting and sculpture. Consulted and coordinated design projects with architects, interior designers and homeowners for high-end projects. . Experience in supervision of employees. David M. Udoff Education: Bachelor of Arts Florida International University Major: Art Associate Arts Degree Los Angeles Valley College (2007) Miami, FL Van Nuys, CA Accomplishments: Professional Placement Network Coursework and training completion Sierra Club, Recreation Leader Broward Park and Recreation, Davie, FL Art Instructor in drawing and painting Hortt award Museum of Art, Fort Lauderdale, FL (2006) (2001-2003) (1997- 1998) ( 1996) Computer Skills: Microsoft Office Professional Edition: Word, Excel and PowerPoint Adobe PhotoShop 6.0, Windows Explorer, Internet, Publisher, Digital Printer. Office Equipment: Business computer, digital printer, Xerox copier, Phones, tape recorder, transcriber, 35 mm SLR digital and film camera, video professional camcorder Professional Affiliations: Sunny Isles Beach Historical Preservation Board F ootlighters JCC Cultural Arts Board- Actors in the Gym Hollywood Arts and Cultural Center (2003-2005) (2003-present) (2005) (1998) Professional Expertise: Journalist, Photographer, Visual Artist ~~Wtl. wi' !I-IV ~o7 J'~.3 November 13,2007 20400 West Country Club Dr., #215 Aventura, FL 33180 Eric M. Soroka, City Manager City of Aventura 19200 West Country Club Drive Aventura, FL 33180 Dear Mr. Soroka: I would like to submit my name for consideration as a candidate to the A ventura Community Services Advisory Board. As a resident of Aventura for 9 years, I feel fortunate to be part of this beautiful and progressive community. Presently, I am employed as a journalist for the South Florida Sun Times and A ventura Digest and write a column and news articles regarding the city. This experience, working actively in the public sector, has given me insight to ongoing city projects such as cultural events, aesthetic projects and recreational events. I have come in contact with many residents, business leaders and elected officials responsible for building our community. During media interviewing or in casual conversation, I have been able to erudite and absorb information pertaining to the city and feel confident of relaying suggested ideas to the Advisory Board for discussion and recommendation. My academic background in the visual arts has given me an appreciation of this medium and the enrichment within oneself. Thank you for your time and consideration. I look forward to hearing from you. Sincerely yours, LJaud Ucla// David Udoff Encl: Resume David M. Udoff 20400 West Country Club Drive #215 Aventura, FL 33180 Tel: (305) 778-4801 E-mail: dmu088@yahoo.com Professional Experience: South Florida Sun Times/Aventura Digest J ournalistlPhotographer (2006-Present) . Author of various newspaper columns, advertorials and reported on city and community events. Expansion of newspaper stories and act as a popular voice in the community. . Conduct interviews with business personalities, government entities and residents. Perform reporting to ascertain details and clarify actual facts and anecdotes for the columns. . Interpret and organize research from articles, books, magazines, recorded interviews and internet. Extract all pertinent audio, visual and written communications and synthesize into concise interesting written news articles. . Produce photographs of people, business products/services, cultural events and citywide infrastructure. . Creative thinking in advertising and developing marketing text with images. City of Sunny Isles Beach, Sunny Isles Beach, FL Administrative Coordinator (2003 - 2005) . Performed all the necessary administrative duties including special projects related to leisure activities, events and tourism. . Strong ability to focus on projects and produce results. . Utilized computer software skills to prepare correspondence, reports, charts, tables and forms. Implement and planned budget, accounts payable/receivable responsibilities, managed filing, documents and installed photographs and documents in the digital library. . Wrote and edited an ongoing newspaper column published in the Sunny Isles Beach Sun detailing the tourism, recreation activities, architectural history and noted personalities. . Produced and edited digital photographs ofthe City's infrastructure, parks and recreation and events for use in City publications, newspaper, TV broadcasts, website, and visual presentations at town hall meetings. Texture Interiors, A ventura, FL Artist/Owner (1993 - 2003) . Specialized in interior decorative arts, painting and sculpture. Consulted and coordinated design projects with architects, interior designers and homeowners for high-end projects. . Experience in supervision of employees. .. David M. U doff Education: Bachelor of Arts Florida International University Major: Art Associate Arts Degree Los Angeles Valley College (2007) Miami, FL Van Nuys, CA Accomplishments: Professional Placement Network Coursework and training completion Sierra Club, Recreation Leader Broward Park and Recreation, Davie, FL Art Instructor in drawing and painting Hortt award Museum of Art, Fort Lauderdale, FL (2006) (2001-2003) (1997 - 1998) (1996) Computer Skills: Microsoft Office Professional Edition: Word, Excel and PowerPoint Adobe PhotoShop 6.0, Windows Explorer, Internet, Publisher, Digital Printer. Office Equipment: Business computer, digital printer, Xerox copier, Phones, tape recorder, transcriber, 35 mm SLR digital and film camera, video professional camcorder Professional Affiliations: Sunny Isles Beach Historical Preservation Board F ootlighters JCC Cultural Arts Board- Actors in the Gym Hollywood Arts and Cultural Center (2003-2005) (2003-present) (2005) (1998) Professional Expertise: Journalist, Photographer, Visual Artist Weiss Serota Helfman Pastoriza Cole & Boniske, P.L. Memo To: Mayor and City Commission From: David M. W olpin, City Attorney Date: November 14,2007 Re: Authorization to Explore Potential City Sponsorship for Federal Grant to Assist Point East Three and Point East Four Condominium Associations with Seawall Restoration RECOMMENDA nON It is recommended that the City Commission consider authorizing the City Manager to send a grant initiating request letter to the U.S. Department of Agriculture by which the City may potentially act as a sponsor for the efforts of Point East Three and Point East Four Condominium Associations ( collectively, the" Association" ) to obtain federal funds to assist the Association in their seawall restoration projects, subject to the condition that the City shall act solely as a non- recourse sponsor with no monetary liability whatsoever. BACKGROUND The Association, through its special legal counsel has acknowledged that the City has no liability or responsibility for the repair of the Association's seawalls which were damaged during Hurricane Wilma in October 2005. However, the Association's special legal counsel has identified a federal program administered by the U.S. Department of Agriculture which may be able to provide grant funds to the Association for the repair of the Association's seawalls, if the Association is able to obtain a local government sponsor to request the grant. If the City Commission desires to authorize further exploration of the feasibility of the City serving as grant sponsor without incurring any liability or expense, the first step would be to authorize the City Manager to execute and submit the enclosed grant initiating request letter. Subsequent efforts will determine whether federal program funds are available, and whether the federal agencies will enable the City to serve as a sponsor with no liability through a grant agreement which recognizes that any obligation of the City under a sponsorship role would be performed solely by the Association or by the Association's contractors. If an acceptable grant agreement is offered by the federal agencies, it would be presented for City Commission consideration. Please advise if further information is required. C.C. Eric M. Soroka, City Manager 328.001 [CITY OF A VENTURA LETTERHEAD] _,2007 Mr. T. Niles Glasgow, State Conservationist USDA - Natural Resources Conservation Service Post Office Box 141510 Gainesville, Florida 32614-1510 Re: City of Aventura (Point East Three and Point East Four Condominiums) Dear Mr. Glasgow: We hereby request federal assistance under provisions of Section 403 of the Agricultural Credit Act of 1978, as a sponsor for Point East Three Condominium Corporation, Inc., and Point East Four Condominium Corporation, Inc., (collectively, the" Condominiums") to repair damages caused by Hurricane Wilma on October, 2005. Please process this as a separate request as to each of the two (2) condominium associations. The Condominium's representatives have advised the City of Aventura ( the" City") that the assistance requested is necessary to protect lives and property from imminent floodwater hazards from debris laden drainage canals and waterways, as well as damage to adjacent seawalls. As potential sponsors of this emergency watershed protection project, the City understands that our responsibilities will include contractually obligating the Condominiums to secure land rights and permits needed to construct and, if necessary, to contractually obligate the Condominiums to operate and maintain any proposed emergency measures. The designated person within the City of A ventura municipal government to whom questions should be directed is: Eric M. Soroka, City Manager 19200 West Country Club Drive A ventura, Florida 33180 Telephone: 305.466.8910 Facsimile: 305.466.8919 E-mail: sorokae@cityofaventura.com Thank you very much for your favorable consideration of the City's requests. Sincerely, Eric M. Soroka, City Manager IRAN DIVESTMENT ADVOCACY SUMMARY BACKGROUND MEMORANDUM (AS OF OCTOBER 25, 2007) October 21,2007 STATE AND LOCAL GOVERNMENT DIVESTMENT FROM IRAN 1. Why divestment is important Unless stopped, Iran is expected to be able to produce a nuclear weapon within approximately one year A nuclear Iran would make the world a far more frightening place. We almost certainly would see a nuclear arms race in the Middle East-and the end of our international non-proliferation regime. We could easily see a nuclear device in the hands of Hezbollah or another of Iran's terrorist proxies. The world would have little ability to stop Iran's expansionism for fear of nuclear reprisal. Our peace, security, and freedom would be severely jeopardized. If Iran is not stopped very soon, we will face a terrible choice: to allow Iran to have a nuclear bomb, or to bomb Iran. The only chance we have to avoid this grim choice is to use all available means now to pressure Iran's regime Iran's regime is extraordinarily vulnerable to economic pressure. Its economy is in deep trouble. Its energy sector upholds the economy, but its oil and gas infrastructure is crumbling The country depends on foreign investment-and Western know-how-to restore its infrastructure and maintain even the current diminished flow of oil. The United States already largely prohibits U.S. companies from doing business in Iran, and provides for sanctions against international companies that do more than $20 million in Iran's energy sector. Just this month, the U.S. government designated Iran's Revolutionary Guard as a proliferator of weapons of mass destruction and designated the IRG's elite Quds Force as a Specially Designated Global Terrorist entity. The US government also has designated several of Iran's largest state-owned banks. Several large international banks have stopped or reduced their business with Iran, partly responding to US pressure. Also, several large energy companies have completely or substantially withdrawn. Significant further decrease in Western investment would deepen Iran's economic crisis, and could force the regime to stop its nuclear activities or risk its own downfall. 2. Divestment le2islation is sweepin2 the country Billions of dollars of U.S public employee pension plans and other public funds are still invested in foreign corporations that invest more than $20 million in Iran's energy sector-accounting for a significant portion of the investment in these corporations, Public fund divestment is an important way to tighten the economic noose around Iran's regime. In the last few months, a wave ofIran divestment legislation has been rippling across the country. Governor Schwarzenegger signed a law requiring California's public pension funds to divest from companies doing major business in Iran's energy or defense sectors The California funds are the largest in the country-probably in the world-with some $400 billion in assets. Florida and Illinois also passed mandatory divestment legislation, and Louisiana passed a non-binding law. The Speaker of Ohio's House reached a divestment deal with the state's public pension funds-they must divest 50% of their targeted holdings by year's end or face mandatory legislation. Florida was the very first state to pass a divestment law regarding both Iran and Sudan. It already has identified the 21 companies in its portfolio that meet its divestment criteria; it has directed its pension funds to divest nearly $1.3 billion from these companies, unless the companies change their ways. Florida holds over $300 million in Shell Oil alone; a Shell spokeswoman acknowledged that the company is closely monitoring the impact of Florida's law and similar initiatives on the company. Texas Governor Rick Perry has directed his state's huge retirement funds-with over $133 billion in assets-to begin the process of Iran divestment. The Governor said: "I know there will be criticism of my directive..., I refuse to accept the premise, however, that the only way to make money is by investing in terrorism." Missouri State Treasurer Steelman led the country in instituting terror-free divestment policies. She also established the nation's first terror-free public fund In its first eight months, the fund returned 2 7%-significantly outperforming its past track record and Missouri's benchmark. Iran divestment legislation already is pending in another half-dozen states, with others expected to take bills up soon. Local governments-like the cities of Miami, Miami Beach and Beverly Hills-also are acting. Taken together, the divestment mandates already on the books affect over half a trillion dollars in assets-and more are on the way. This should help move the investment industry to create Iran-free investment vehicles, and help motivate foreign corporations to further reduce business that helps sustain Iran's regime-especially because most of the laws require the states to give companies an opportunity to avoid divestment by terminating their sanctionable investments. State and local governments can make a huge difference by assuring that their public funds are not invested in companies that help support Iran's regime. They can thereby add to the power of the divestment movement and contribute to the overall economic squeeze on Iran's frightful regime-an important element in the effort to stop the looming Iranian threat. 2 " IRAN DIVESTMENT ADVOCACY MODEL RESOLUTION RESOLUTION NO. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF , FLORIDA, AMENDING THE CITY'S INVESTMENT POLICY TO REQUIRE THE [NAME OF BOARD MANAGING FUND(S)] TO: (i) (A) REVIEW THE PUBLIC FUNDS THAT THE CITY MANAGES AND IDENTIFY ALL PUBLICLY TRADED SECURITIES THEY MAY HOLD IN "SCRUTINIZED COMPANIES" WITH ACTIVE BUSINESS OPERATIONS IN IRAN, AS LISTED BY THE STATE BOARD OF ADMINISTRATION, IN ACCORDANCE WITH THE PROVISIONS OF THE STATE'S "PROTECTING FLORIDA'S INVESTMENT ACT" (CHAPTER 2007-88, LAWS OF FLORIDA); (B) WRITE A LETTER TO EACH OF THOSE COMPANIES ASKING IT TO CEASE OR INACTIVATE ITS SCRUTINIZED ACTIVITIES WITHIN 90 DAYS TO A VOID DIVESTMENT BY THE fNAME OF FUND/PENSION PLAN1; AND (C) THEREAFTER, DIVEST OF ALL PUBLICLY TRADED SECURITIES THEY MAY HOLD IN ANY SCRUTINIZED COMPANY THAT HAS NOT DIVESTED OR INACTIVATED ITS SCRUTINIZED ACTIVITIES; AND (ii) PROHIBIT THE INVESTMENT OF PUBLIC FUNDS MANAGED BY THE CITY IN ANY "SCRUTINIZED COMPANIES" WITH ACTIVE BUSINESS OPERATIONS IN IRAN, AS LISTED BY THE STATE BOARD OF ADMINISTRATION ON A QUARTERLY BASIS, IN ACCORDANCE WITH THE PROVISIONS OF THE STATE'S "PROTECTING FLORIDA'S INVESTMENT ACT" (CHAPTER 2007- 88, LAWS OF FLORIDA) WHEREAS, Senate Bill 2142 created Sections 215.442 and 215.473, Florida Statutes, referred to as the "Protecting Florida's Investment Act" ("Act"); and WHEREAS the Act requires the State Board of Administration ("SBA") to create a quarterly report listing all investments held by the "Public Fund," which it defines as all funds, assets, trustees and other designates under the SBA ; and WHEREAS, the Act requires the SBA to assemble a list of "scrutinized companies" and update it quarterly; and WHEREAS, the Act defines a "scrutinized company" to include any company that has oil-related business operations or investments in Iran that meet specified criteria; and WHEREAS the Act requires the SBA, within 90 days of enactment, to make its best efforts to identify "scrutinized companies" in which the Public Fund has direct or indirect holdings, or could possibly have such holdings in the future and, by the next meeting of the Public Fund, to provide a list of such scrutinized companies; and WHEREAS the Act requires the Public Fund to encourage scrutinized companies a to cease or inactivate their scrutinized activities within 90 days to avoid divestment by the Public Fund; and WHEREAS, after the ninety day period, the Act gives the Public Fund one year to divest of all publicly traded securities of a scrutinized company that has not divested or inactivated its scrutinized activities; and WHEREAS, the Act prohibits the Public Fund from acquiring securities of any companies on the scrutinized companies list that have active business operations in Iran, with certain exceptions; and WHEREAS, as the Act indicates, the US. Securities and Exchange Commission has determined that investment in a company doing business with a state that sponsors terrorism poses a special risk; and WHEREAS, as the Act notes, UN. and US. sanctions against Iran create financial risks for companies involved in Iran's energy sector; and WHEREAS, the City of _ shares the State of Florida's deep concern that investments in publicly traded companies with business activities in and ties to Iran's petroleum-energy sector pose a financial risk to shareholders; and WHEREAS, the City of _agrees with the State of Florida's concern, that by investing in publicly traded companies having ties to Iran's petroleum-energy sector, the City of _ is putting the funds it oversees at substantial financial risk; and WHEREAS, as the State of Florida noted in the Act, divestiture from markets that are vulnerable to embargo, loan restrictions and sanctions from the United States and the international community, including the United Nations Security Council, is consistent with the rules of prudence; and WHEREAS, to protect the City of _' s assets, it is in the best interest of the City-consistent with the State's decision in the Act-to amend the City's investment policy to (i) require the [fund managers/Board] to follow, with respect to the [name of the fund/pension plan], the procedure described in Florida Statutes 215.442 and 215.473 for State Public Funds (specifically, the [name of the fund/pension plan] shall: (a) identify all publicly traded securities it holds in "scrutinized companies" with active business operations in Iran, as listed by the State Board of Administration on a quarterly basis, (b) write a letter to each of those companies asking it to cease or inactivate its scrutinized activities within 90 days to avoid divestment by the [name of fund/pension plan] and (c) thereafter, divest of all publicly traded securities of any scrutinized company that has not divested or inactivated its scrutinized activities); and (ii) desist from investing public funds managed by the City in any "scrutinized companies" with active business operations in Iran, as listed by the State Board of Administration on a quarterly basis, in accordance with the provisions of the Act NOW, THEREFORE, BE IT DULY RESOLVED THAT THE CITY COJ\1MISSION OF THE CITY OF _, FLORIDA, hereby amend the City's investment policy to (i) require the [fund manager/Board] to follow, with respect to the 2 [name of the fund/pension plan] the procedure described in Florida Statutes 215.442 and 215.473 (specifically, the [name of the fund/pension plan] shall: (a) identify all publicly traded securities it holds in "scrutinized companies" with active business operations in Iran, as listed by the State Board of Administration on a quarterly basis, in accordance with the provisions of the Act (b) write a letter to each of those companies asking it to cease or inactivate its scrutinized activities within 90 days to avoid divestment by the [name of fund/pension plan] and (c) thereafter, divest of all publicly traded securities of any scrutinized company that has not divested or inactivated its scrutinized activities); and (ii) prohibit the investment of public funds in any "scrutinized companies" with active business operations in Iran, as listed by the State Board of Administration on a quarterly basis, in accordance with the provisions of the Act. PASSED and ADOPTED this day of ,2007 MAYOR ATTEST: CITY CLERK APPROVED AS TO FORM AND CORRECTN"ESS: CITY ATTORNEY 3 IRAN DIVESTMENT ADVOCACY STATE OF FLORIDA LEGISLATION FLORIDA H 0 USE o F \ '-, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CS for HB 703 & HB 1431 REPRESENTATIVES 2007 A bill to be entitled An act relating to State Board of Administration investments; creating s. 215.442, F.S.; providing reporting requirements for the executive director of the State Board of Administration; requiring the State Board of Administration to publish certain quarterly reports on its website; creating s. 215.473, F.S.; providing legislative findings; providing definitions; requiring the State Board of Administration to identify all companies in which public moneys are invested that are doing certain types of business in or with Sudan and Iran; requiring the board to create and maintain certain scrutinized companies lists that name all such companies; requiring the board to periodically contact all scrutinized companies and encourage them to refrain from engaging in certain types of business in or with Sudan or Iran; requiring the board to inform scrutinized companies of their status as a scrutinized company and to ask for clarification as to the nature of each company's business activities; providing that a company may be removed from the list under certain conditions; providing for reintroduction of a company onto the list; requiring the board to divest of all publicly traded securities of a scrutinized company under certain conditions; providing exceptions to the divestment requirement; prohibiting the board from acquiring securities of scrutinized companies that have active business operations; providing exceptions to the investment prohibition; providing an additional exception Page 1 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 F LOR o A H 0 USE o F REPRESENTATIVES CS for HB 703 & H81431 2007 29 from the divestment requirement and the investment 30 prohibition to certain indirect holdings in actively 31 managed investment funds; requiring the board to request 32 that the managers of such investment funds consider 33 removing scrutinized companies from the fund or create a 34 similar fund that excludes such companies; requiring the 35 board to file a report with the Board of Trustees of the 36 State Board of Administration and the Legislature within a 37 specified period after creation of each scrutinized 38 companies list; requiring the annual filing of an updated 39 report; requiring that all such reports be made available 40 to the public; requiring that the report include certain 41 information; providing for the expiration of the act; 42 exempting the board from certain statutory or common law 43 obligations; authorizing the board to cease divesting or 44 to reinvest in certain scrutinized companies if the value 45 for all assets under management by the board becomes equal 46 to or less than a specified amount; requiring the board to 47 provide a written report to the Board of Trustees of the 48 State Board of Administration and the Legislature before 49 such r€investment; requiring that the report contain 50 certain information; requiring semiannual updates to such 51 reports when applicable; providing for severability; 52 providing an effective date. 53 54 WHEREAS, on July 23, 2004, the United States Congress 55 declared that "the atrocities unfolding in Darfur, Sudan, are 56 genocide," and Page 2 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 F LOR D A H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 57 WHEREAS, on December 7, 2004, the United States Congress 58 noted that the genocidal policy in Darfur has led to reports of 59 "systematic rape of thousands of women and girls, the abduction 60 of women and children, and the destruction of hundreds of 61 ethnically African villages, including the poisoning of their 62 wells and the plunder of their crops and cattle upon which the 63 people of such villages sustain themselves," and 64 WHEREAS, on December 7, 2004, Congress found that "the 65 Government of Sudan has restricted access by humanitarian and 66 human rights workers to the Darfur area through intimidation by 67 military and security forces, and through bureaucratic and 68 administrative obstruction, in an attempt to inflict the most 69 devastating harm on those individuals displaced from their 70 villages and homes without any means of sustenance or shelter, 11 71 and 72 WHEREAS, on September 25, 2006, Congress reaffirmed that 73 "the genocide unfolding in the Darfur region of Sudan is 74 characterized by acts of terrorism and atrocities directed 75 against civilians, including mass murder, rape, and sexual 76 violence committed by the Janjaweed and associated militias with 77 the complicity and support of the National Congress Party-led 78 faction of the Government of Sudan," and 79 WHEREAS, on September 26, 2006, the United States House of 80 Representatives stated that "an estimated 300,000 to 400,000 81 people have been killed by the Government of Sudan and its 82 Janjaweed allies since the crisis began in 2003, more than 83 2,000,000 people have been displaced from their homes, and more 84 than 250,000 people from Darfur remain in refugee camps in Page 3 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-0 1-c1 F LOR o A H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 85 Chad," and 86 WHEREAS, the Darfur crisis represents the first time the 87 United States Government has labeled ongoing atrocities as 88 genocide, and 89 WHEREAS, the Federal Government has imposed sanctions 90 against the Government of Sudan since 1997. These sanctions are 91 monitored through the United States Treasury Department's Office 92 of Foreign Assets Control (OFAC), and 93 WHEREAS, according to a former chair of the United States 94 Securities and Exchange Commission, "the fact that a foreign 95 company is doing material business with a country, government, 96 or entity on OFAC's sanctions list is, in the SEC staff's view, 97 substantially likely to be significant to a reasonable 98 investor I s decision about whether to invest in that company, II 99 and 100 WHEREAS, since 1993, the United States Secretary of State 101 has determined that Sudan is a country whose government has 102 repeatedly provided support for acts of international terrorism, 103 and, as a result, the United States has restricted assistance, 104 defense exports, defense sales, financial transactions, and 105 various other transactions with the Government of Sudan, and 106 WHEREAS, a 2006 report by the United States House of 107 Representatives states that "a company's association with 108 sponsors of terrorism and human rights abuses, no matter how 109 large or small, can have a materially adverse result on a public 110 company's operations, financial condition, earnings, and stock III prices, all of which can negatively affect the value of an 112 investment," and Page 4 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 F LOR o A H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 113 WHEREAS, in response to the financial risk posed by 114 investments in companies doing business with a state that 115 sponsors terrorists, the Securities and Exchange Commission 116 established its Office of Global Security Risk to provide for 117 enhanced disclosure of material information regarding such 118 companies, and 119 WHEREAS, the current Sudan divestment movement encompasses 120 nearly 100 universities, municipalities, states, and private 121 pension plans, and 122 WHEREAS, companies facing such widespread divestment 123 present further material risk to remaining investors, and 124 WHEREAS, it is a fundamental responsibility of the State of 125 Florida to decide where, how, and by whom financial resources in 126 its control should be invested, taking into account numerous 127 pertinent factors, and 128 WHEREAS, it is the prerogative and desire of the State of 129 Florida, with respect to investment resources in its control and 130 to the extent reasonable, with due consideration for return on 131 investment on behalf of the state and its investment 132 beneficiaries, not to participate in an ownership or capital- 133 providing capacity with entities that provide significant 134 practical support for genocide, including certain non-United 135 States companies presently doing business in Sudan, and 136 WHEREAS, a resolution of the United Nations Security 137 Council imposes sanctions on Iran for its failure to suspend its 138 uranium-enrichment activities, and 139 WHEREAS, the United Nations Security Council voted 140 unanimously for an additional embargo on Iranian arms exports, Page 5 of 24 CODING: Words strickon are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 141 which is a freeze on assets abroad of an expanded list of 142 individuals and companies involved in Iran's nuclear and 143 ballistic missile programs, and calls for nations and 144 institutions to bar new grants or loans to Iran except for 145 humanitarian and developmental purposes, and 146 WHEREAS, Iran's financial ability to pay its debts to 147 foreign entities involved in the petroleum-energy sector 148 amounting to more than $20 million is put at risk by the Iran 149 and Libya Sanctions Act embargo and sanctions, and 150 WHEREAS, foreign entities have invested in Iran's 151 petroleum-energy sector despite United States and United Nations 152 sanctions against Iran, and 153 WHEREAS, all United States and foreign entities that have 154 invested more than $20 million in Iran's energy sector since 155 August 5, 1996, are subject to sanctions under United States law 156 pursuant to the Iran and Libya Sanctions Act of 1996, and 157 WHEREAS, United States renewed the Iran and Libya Sanctions 158 Act of 1996 in 2001 and 2006, and 159 WHEREAS, while divestiture should be considered with the 160 intent to improve investment performance and, by the rules of 161 prudence, fiduciaries must take into account all relevant 162 substantive factors in arriving at an investment decision, and 163 WHEREAS, the State of Florida is deeply concerned about 164 investments in publicly traded companies that have business 165 activities in and ties to Iran's petroleum-energy sector as a 166 financial risk to the shareholders, and 167 WHEREAS, by investing in publicly traded companies having 168 ties to Iran's petroleum-energy sector, the Florida State Board Page 6 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 169 of Administration is putting the funds it oversees at 170 substantial financial risk, and 171 WHEREAS, divestiture from markets that are vulnerable to 172 embargo, loan restrictions, and sanctions from the United States 173 and the international community, including the United Nations 174 Security Council, is in accordance with the rules of prudence, 175 and 176 WHEREAS, The Legislature finds that this act should remain 177 in effect only insofar as it continues to be consistent with and 178 does not unduly interfere with the foreign policy of the United 179 States as determined by the Federal Government, and 180 WHEREAS, to protect Florida's assets, it is in the best 181 interest of the state to enact a statutory prohibition regarding 182 the investments managed by the State Board of Administration 183 doing business in Sudan or in Iran's petroleum-energy sector, 184 NOW, THEREFORE, 185 186 Be It Enacted by the Legislature of the State of Florida: 187 188 Section 1. Section 215.442, Florida Statutes, is created 189 to read: 190 215.442 Executive director; reporting requirements; public 191 meeting. -- 192 (1) Beginning October 2007 and quarterly thereafter, the 193 executive director shall present to the Board of Trustees of the 194 State Board of Administration a quarterly report to include the 195 following: 196 (a) The name of each equity in which the State Board of Page 7 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 197 Administration has invested for the quarter. 198 (b) The industry category of each equity. 199 (2) The executive director shall present each quarterly 200 report at a meeting of the board of trustees, which shall be 201 open and noticed to the public pursuant to the requirements of 202 s. 286.011 and s. 24(b), Art. I of the State Constitution. 203 (3) The State Board of Administration shall publish a copy 204 of each quarterly report on its website prior to presenting the 205 report at each quarterly meeting of the board of trustees. 206 Section 2. Section 215.473, Florida Statutes, is created 207 to read: 208 215.473 Divestiture by the State Board of Administration; 209 Sudan; Iran. -- 210 (1) DEFINITIONS.--As used in this section, the term: 211 (a) "Active business operations" means all business 212 operations that are not inactive business operations. 213 (b) "Business operations" means engaging in commerce in 214 any form in Sudan or Iran, including, but not limited to, 215 acquiring, developing, maintaining, owning, selling, possessing, 216 leasing, or operating equipment, facilities, personnel, 217 products, services, personal property, real property, or any 218 other apparatus of business or commerce. 219 (c) "Company" means any sole proprietorship, organization, 220 association, corporation, partnership, joint venture, limited 221 partnership, limited liability partnership, limited liability 222 company, or other entity or business association, including all 223 wholly owned subsidiaries, majority-owned subsidiaries, parent 224 companies, or affiliates of such entities or business Page 8 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 225 associations, that exists for the purpose of making a profit. 226 (d) "Complicit" means taking actions during any preceding 227 20-month period which have directly supported or promoted the 228 genocidal campaign in Darfur, including, but not limited to, 229 preventing Darfur's victimized population from communicating 230 with each other, encouraging Sudanese citizens to speak out 231 against an internationally approved security force for Darfur, 232 actively working to deny, cover up, or alter the record on human 233 rights abuses in Darfur, or other similar actions. 234 (e) "Direct holdings" in a company means all securities of 235 that company that are held directly by the public fund or in an 236 account or fund in which the public fund owns all shares or 237 interests. 238 (f) "Government of Iran" means the government of Iran, its 239 instrumentalities, and companies owned or controlled by the 240 government of Iran. 241 (g) "Government of Sudan" means the government in 242 Khartoum, Sudan, that is led by the National Congress Party, 243 formerly known as the National Islamic Front, or any successor 244 government formed on or after October 13, 2006, including the 245 coalition National Unity Government agreed upon in the 246 Comprehensive Peace Agreement for Sudan, and does not include 247 the regional government of southern Sudan. 248 (h) "Inactive business operations" means the mere 249 continued holding or renewal of rights to property previously 250 operated for the purpose of generating revenues but not 251 presently deployed for such purpose. 252 (i) "Indirect holdings" in a company means all securities Page 9 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 F LOR o A H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 253 of that company that are held in an account or fund, such as a 254 mutual fund, managed by one or more persons not employed by the 255 public fund, in which the public fund owns shares or interests 256 together with other investors not subject to the provisions of 257 this section. 258 (j)" Iran" means the Islamic Republic of Iran. 259 (k) "Marginalized populations of Sudan" include, but are 260 not limited to, the portion of the population in the Darfur 261 region that has been genocidally victimized; the portion of the 262 population of southern Sudan victimized by Sudan's north-south 263 civil war; the Beja, Rashidiya, and other similarly underserved 264 groups of eastern Sudan; the Nubian and other similarly 265 underserved groups in Sudan's Abyei, Southern Blue Nile, and 266 Nuba Mountain regions; and the Amri, Hamadab, Manasir, and other 267 similarly underserved groups of northern Sudan. 268 (1) "Military equipment" means weapons, arms, military 269 supplies, and equipment that may readily be used for military 270 purposes, including, but not limited to, radar systems, 271 military-grade transport vehicles, or supplies or services sold 272 or provided directly or indirectly to any force actively 273 participating in armed conflict in Sudan. 274 (m) "Mineral-extraction activities" include the exploring, 275 extracting, processing, transporting, or wholesale selling or 276 trading of elemental minerals or associated metal alloys or 277 oxides (ore), including gold, copper, chromium, chromite, 278 diamonds, iron, iron ore, silver, tungsten, uranium, and zinc, 279 as well as facilitating such activities, including providing 280 supplies or services in support of such activities. Page 10 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 281 (n) "Oil-related activities" include, but are not limited 282 to, owning rights to oil blocks; exporting, extracting, 283 producing, refining, processing, exploring for, transporting, 284 selling, or trading of oil; constructing, maintaining, or 285 operating a pipeline, refinery, or other oil-field 286 infrastructure; and facilitating such activities, including 287 providing supplies or services in support of such activities, 288 except that the mere retail sale of gasoline and related 289 consumer products is not considered an oil-related activity. 290 (0) "Petroleum resources" means petroleum, petroleum 291 byproducts, or natural gas. 292 (p) "Power-production activities" means any business 293 operation that involves a project commissioned by the National 294 Electricity Corporation (NEC) of Sudan or other similar entity 295 of the Government of Sudan whose purpose is to facilitate power 296 generation and delivery, including, but not limited to, 297 establishing power-generating plants or hydroelectric dams, 298 selling or installing components for the project, providing 299 service contracts related to the installation or maintenance of 300 the project, as well as facilitating such activities, including 301 providing supplies or services in support of such activities. 302 (q) "Public fund" means all funds, assets, trustees, and 303 other designates under the State Board of Administration 304 pursuant to chapter 121. 305 (r) "Scrutinized active business operations" means active 306 business operations that have resulted in a company becoming a 307 scrutinized company. 308 (s) "Scrutinized business operations" means business Page 11 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 309 operations that have resulted in a company becoming a 310 scrutinized company. 311 (t) "Scrutinized company" means any company that meets any 312 of the following criteria: 313 1. The company has business operations that involve 314 contracts with or provision of supplies or services to the 315 Government of Sudan, companies in which the Government of Sudan 316 has any direct or indirect equity share, consortiums or projects 317 commissioned by the Government of Sudan, or companies involved 318 in consortiums or projects commissioned by the Government of 319 Sudan, and: 320 a. More than 10 percent of the company's revenues or 321 assets linked to Sudan involve oil-related activities or 322 mineral-extraction activities, less than 75 percent of the 323 company's revenues or assets linked to Sudan involve contracts 324 with or provision of oil-related or mineral-extracting products 325 or services to the regional government of southern Sudan or a 326 project or consortium created exclusively by that regional 327 government, and the company has failed to take substantial 328 action; or 329 b. More than 10 percent of the company's revenues or 330 assets linked to Sudan involve power-production activitiesr less 331 than 75 percent of the company's power-production activities 332 include projects whose intent is to provide power or electricity 333 to the marginalized populations of Sudan, and the company has 334 failed to take substantial action. 335 2. The company is complicit in the Darfur genocide. 336 3. The company supplies military equipment within Sudan, Page 12 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 F LOR D A H 0 USE o F R E PRE S E N TAT CS for HB 703 & HB 1431 Lvvr 337 unless it clearly shows that the military equipment cannot be 338 used to facilitate offensive military actions in Sudan or the 339 company implements rigorous and verifiable safeguards to prevent 340 use of that equipment by forces actively participating in armed 341 conflict. Examples of safeguards include post-sale tracking of 342 such equipment by the company, certification from a reputable 343 and obj ective third party that such equipment is not being used 344 by a party participating in armed conflict in Sudan, or sale of 345 such equipment solely to the regional government of southern 346 Sudan or any internationally recognized peacekeeping force or 347 humanitarian organization. 348 4. The company has business operations that involve 349 contracts with or provision of supplies or services to the 350 Government of Iran, companies in which the Government of Iran 351 has any direct or indirect equity share, consortiums or projects 352 commissioned by the Government of Iran, or companies involved in 353 consortiums or projects commissioned by the Government of Iran 354 and: 355 a. More than 10 percent of the company's total revenues or 356 assets are linked to Iran and involve oil-related activities or 357 mineral-extraction activities, and the company has failed to 358 take substantial action; or 359 b. The company has, with actual knowledge, on or after 360 August 5, 1996, made an investment of $20 million or more, or 361 any combination of investments of at least $10 million each 362 which in the aggregate equals or exceeds $20 million in any 12- 363 month period, that directly or significantly contributes to the 364 enhancement of Iran's ability to. develop the petroleum resources Page 13 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 365 of Iran. 366 (u) "Social-development company" means a company whose 367 primary purpose in Sudan is to provide humanitarian goods or 368 services, including medicine or medical equipment; agricultural 369 supplies or infrastructure; educational opportunities; 370 journalism-related activities; information or information 371 materials; spiritual-related activities; services of a purely 372 clerical or reporting nature; food, clothing, or general 373 consumer goods that are unrelated to oil-related activities; 374 mineral-extraction activities; or power-production activities. 375 (v) "Substantial action specific to Iran" means adopting, 376 publicizing, and implementing a formal plan to cease scrutinized 377 business operations within 1 year and to refrain from any such 378 new business operations. 379 (w) "Substantial action specific to Sudan" means adopting, 380 publicizing, and implementing a formal plan to cease scrutinized 381 business operations within 1 year and to refrain from any such 382 new business operations; undertaking humanitarian efforts in 383 conjunction with an international organization, the Government 384 of Sudan, the regional government of Southern Sudan, or a 385 nonprofit entity evaluated and certified by an independent third 386 party to be substantially in a relationship to the company's 387 Sudan business operations and of benefit to one or more 388 marginalized populations of Sudan; or, through engagement. with 389 the Government of Sudan, materially improving conditions for the 390 genocidally victimized population in Darfur. 391 (2) IDENTIFICATION OF COMPANIES.-- 392 (a) Within 90 days after the effective date of this act, Page 14of24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F R E PRE S E N TAT I V E S CS for HB 703 & HB 1431 2007 393 the public fund shall make its best efforts to identify all 394 scrutinized companies in which the public fund has direct or 395 indirect holdings or could possibly have such holdings in the 396 future. Such efforts include: 397 1. Reviewing and relying, as appropriate in the public 398 fund's judgment, on publicly available information regarding 399 companies having business operations in Sudan, including 400 information provided by nonprofit organizations, research firms, 401 international organizations, and government entities. 402 2. Contacting asset managers contracted by the public fund 403 that invest in companies having business operations in Sudan. 404 3. Contacting other institutional investors that have 405 divested from or engaged with companies that have business 406 operations in Sudan. 407 4. Reviewing laws of the United States regarding the 408 levels of business activity that would cause application of 409 sanctions for companies conducting business or investing in 410 countries that are designated state sponsors of terror. 411 (b) By the first meeting of the public fund following the 412 90-day period described in paragraph (a), the public fund shall 413 assemble all scrutinized companies that fit criteria specified 414 in subparagraphs (1) (t)l., 2., and 3. into a "Scrutinized 415 Companies with Activities in Sudan List" and shall assemble all 416 scrutinized companies that fit criteria specified in 417 subparagraph (1) (t)4. into a "Scrutinized Companies with 418 Activities in the Iran Petroleum Energy Sector List. " 419 (c) The public fund shall update and make publicly 420 available each quarter the Scrutinized Companies with Activities Page 15 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 421 in Sudan List and the Scrutinized Companies with Activities in 422 the Iran Petroleum Energy Sector List based on evolving 423 information from, among other sources, those listed in paragraph 424 (a) . 425 (d) Notwithstanding the provisions of this section, a 426 social-development company that is not complicit in the Darfur 427 genocide is not considered a scrutinized company under 428 subparagraph (1) (t)l., subparagraph (1) (t)2., or subparagraph 429 (1)(t)3. 430 (3) REQUIRED ACTIONS.--The public fund shall adhere to the 431 following procedure for assembling companies on the Scrutinized 432 Companies with Activities in Sudan List and the Scrutinized 433 Companies with Activities in the Iran Petroleum Energy Sector 434 List: 435 (a) Engagement.-- 436 1. The public fund shall immediately determine the 437 companies on the Scrutinized Companies with Activities in Sudan 438 List and the Scrutinized Companies with Activities in the Iran 439 Petroleum Energy Sector List in which the public fund owns 440 direct or indirect holdings. 441 2. For each company identified in this paragraph that has 442 only inactive business operations, the public fund shall send a 443 written notice informing the company of this section and 444 encouraging it to continue to refrain from initiating active 445 business operations in Sudan or Iran until it is able to avoid 446 scrutinized business operations. The public fund shall continue 447 such correspondence semiannually. 448 3. For each company newly identified under this paragraph Page 16 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 449 that has active business operations, the public fund shall send 450 a written notice informing the company of its scrutinized 451 company status and that it may become subject to divestment by 452 the public fund. The notice must inform the company of the 453 opportunity to clarify its Sudan-related or Iran-related 454 activities and encourage the company, within 90 days, to cease 455 its scrutinized business operations or convert such operations 456 to inactive business operations in order to avoid qualifying for 457 divestment by the public fund. 458 4. If, within 90 days after the public fund's first 459 engagement with a company pursuant to this paragraph, that 460 company ceases scrutinized business operations, the company 461 shall be removed from the Scrutinized Companies with Activities 462 in Sudan List and the Scrutinized Companies with Activities in 463 the Iran Petroleum Energy Sector List, and the provisions of 464 this section shall cease to apply to that company unless that 465 company resumes scrutinized business operations. If, within 90 466 days after the public fund's first engagement, the company 467 converts its scrutinized active business operations to inactive 468 business operations, the company is subject to all provisions 469 relating to inactive business operations. A company may be 470 removed from one list but remain on the other list, in which 471 case the company shall be subject to the provisions applicable 472 to the list on which the company remains. 473 (b) Divestment.-- 474 1. If, after 90 days following the public fund's first 475 engagement with a company pursuant to paragraph (a), the company 476 continues to have scrutinized active business operations, and Page 17 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 CS for HB 703 & HB 1431 2007 only while such company continues to have scrutinized active business operations, the public fund shall sell, redeem, divest, or withdraw all publicly traded securities of the company, except as provided in paragraph (d), from the public fundts assets under management within 12 months after the company's most recent appearance on the Scrutinized Companies with Activities in Sudan List or on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List. 2. If a company that ceased scrutinized active business operations following engagement pursuant to paragraph (a) resumes such operations, this paragraph immediately applies, and the public fund shall send a written notice to the company. The company shall also be immediately reintroduced onto the Scrutinized Companies with Activities in Sudan List or on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, as applicable. (c) Prohibition.--The public fund may not acquire securities of companies on the Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List that have active business operations, except as provided in paragraph (d). (d) Exemption.--A company that the United States Government affirmatively declares to be excluded from its present or any future federal sanctions regime relating to Sudan or Iran is not subject to divestment or the investment prohibition pursuant to paragraphs (b) and (c). (e) Excluded securities.--Notwithstanding the provisions of this section, paragraphs (b) and (c) do not apply to indirect Page 18 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 505 holdings in actively managed investment funds. However, the 506 public fund shall submit letters to the managers of such 507 investment funds containing companies that have scrutinized 508 active business operations requesting that they consider 509 removing such companies from the fund or create a similar 510 actively managed fund having indirect holdings devoid of such 511 companies. If the manager creates a similar fund, the public 512 fund shall replace all applicable investments with investments 513 in the similar fund in an expedited timeframe consistent with 514 prudent investing standards. For the purposes of this section, a 515 private equity fund is deemed to be an actively managed 516 investment fund. 517 (f) Further exclusions.--Notwithstanding any other 518 provision of this section, the public fund, when discharging its 519 responsibility for operation of a defined contribution plan, 520 shall engage the manager of the investment offerings in such 521 plans requesting that they consider removing scrutinized 522 companies from the investment offerings or create an alternative 523 investment offering devoid of scrutinized companies. If the 524 manager creates an alternative investment offering and the 525 offering is deemed by the public fund to be consistent with 526 prudent investor standards, the public fund shall consider 527 including such investment offering in the plan. 528 (4) REPORTING.-- 529 (a) The public fund shall file a report with each member 530 of the Board of Trustees of the State Board of Administration, 531 the President of the Senate, and the Speaker of the House of 532 Representatives that includes the Scrutinized Companies with Page 19 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 533 Activities in Sudan List and the Scrutinized Companies with 534 Activities in the Iran Petroleum Energy Sector List within 30 535 days after the list is created. This report shall be made 536 available to the public. 537 (b) At each quarterly meeting of the board of trustees, 538 the public fund shall file a report, which shall be made 539 available to the public and to each member of the Board of 540 Trustees of the State Board of Administration, the President of 541 the Senate, and the Speaker of the House of Representatives, and 542 send a copy of that report to the United States Presidential 543 Special Envoy to Sudan and the united States Presidential 544 Special Envoy to Iran, or an appropriate designee or successor, 545 which includes: 546 1. A summary of correspondence with companies engaged by 547 the public fund under subparagraphs (3) (a)2. and 3. 548 2. All investments sold, redeemed, divested, or withdrawn 549 in compliance with paragraph (3) (b). 550 3. All prohibited investments under paragraph (3) (c). 551 4. Any progress made under paragraph (3) (e) . 552 5. A list of all publicly traded securities held directly 553 by this state. 554 (5) EXPlRATION.--This section expires upon the occurrence 555 of all of the following: 556 (a) If any of the following occurs, the public fund shall 557 no longer scrutinize companies according to subparagraphs 558 (1) (t)l., 2., and 3. and shall no longer assemble the 559 Scrutinized Companies with Activities in Sudan List, shall cease 560 engagement and divestment of such companies, and may reinvest in Page 20 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 F LOR D A H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 561 such companies as long as such companies do not satisfy the 562 criteria for inclusion in the Scrutinized Companies with 563 Activities in the Iran Petroleum Energy Sector List: 564 1. The Congress or the President of the United States 565 affirmatively and unambiguously states, by means of, including, 566 but not limited to, legislation, executive order, or written 567 certification from the President to the Congress, that the 568 Darfur genocide has been halted for at least 12 months; 569 2. The United States revokes all sanctions imposed against 570 the Government of Sudan; 571 3. The Congress or the President of the United States 572 affirmatively and unambiguously states, by means of, including, 573 but not limited to, legislation, executive order, or written 574 certification from the President to the Congress, that the 575 Government of Sudan has honored its commitments to cease attacks 576 on civilians, demobilize and demilitarize the Janjaweed and 577 associated militias, grant free and unfettered access for 578 deliveries of humanitarian assistance, and allow for the safe 579 and voluntary return of refugees and internally displaced 580 persons; or 581 4. The Congress or the President of the United States 582 affirmatively and unambiguously states, by means of, including, 583 but not limited to, legislation, executive order, or written 584 certification from the President to the Congress, that mandatory 585 divestment of the type provided for in this section interferes 586 with the conduct of United States foreign policy. 587 (b) If any of the following occurs, the public fund shall 588 no longer scrutinize companies according to subparagraph Page 21 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 589 (1) (t) 4. and shall no longer assemble the Scrutinized Companies 590 with Activities in the Iran Petroleum Energy Sector List and 591 shall cease engagement, investment prohibitions, and divestment. 592 The public fund may reinvest in such companies as long as such 593 companies do not satisfy the criteria for inclusion in the 594 Scrutinized Companies with Activities in Sudan List: 595 1. The Congress or the President of the united States 596 affirmatively and unambiguously states, by means of, including, 597 but not limited to, legislation, executive order, or written 598 certification from the President to the Congress, that the 599 Government of Iran has ceased to acquire weapons of mass 600 destruction and support international terrorism; 601 2. The United States revokes all sanctions imposed against 602 the Government of Iran; or 603 3. The Congress or the President of the United States 604 affirmatively and unambiguously declares, by means including, 605 but not limited to, legislation, executive order, or written 606 certification from the President to the Congress, that mandatory 607 divestment of the type provided for in this section interferes 608 with the conduct of United States foreign policy. 609 (6) OTHER LEGAL OBLIGATIONS.--With respect to actions 610 taken in compliance with this section, including all good faith 611 determinations regarding companies as required by this section, 612 the public fund is exempt from any conflicting statutory or 613 common law obligations, including any such obligations with 614 respect to choice of asset managers, investment funds, or 615 investments for the public fund's securities portfolios. 616 (7) REINVESTMENT IN CERTAIN COMPANIES HAVING SCRUTINIZED Page 22 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 617 ACTIVE BUSINESS OPERATIONS.--Notwithstanding any other provision 618 of this section to the contrary, the public fund may cease 619 divesting from certain scrutinized companies pursuant to 620 paragraph (3) (b) or reinvest in certain scrutinized companies 621 from which it divested pursuant to paragraph (3) (b) if clear and 622 convincing evidence shows that the value of all assets under 623 management by the public fund becomes equal to or less than 624 99.50 percent, or 50 basis points, of the hypothetical value of 625 all assets under management by the public fund assuming no 626 divestment for any company had occurred under paragraph (3) (b) 627 Cessation of divestment, reinvestment, or any subsequent ongoing 628 investment authorized by this section is limited to the minimum 629 steps necessary to avoid the contingency set forth in this 630 subsection or that no divestment of any company is required for 631 less than fair value. For any cessation of divestment, 632 reinvestment, or subsequent ongoing investment authorized by 633 this section, the public fund shall provide a written report to 634 each member of the Board of Trustees of the State Board of 635 Administration, the President of the Senate, and the Speaker of 636 the House of Representatives in advance of initial reinvestment, 637 updated semiannually thereafter as applicable, setting forth the 638 reasons and justification, supported by clear and convincing 639 evidence, for its decisions to cease divestment, reinvest, or 640 remain invested in companies having scrutinized active business 641 operations. This section does not apply to reinvestment in 642 companies on the grounds that they have ceased to have 643 scrutinized active business operations. 644 Section 3. If any provision of this act or its application Page 23 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 FLORIDA H 0 USE o F REPRESENTATIVES CS for HB 703 & HB 1431 2007 645 to any person or circumstance is held invalid, the invalidity 646 does not affect other provisions or applications of the act that 647 can be given effect without the invalid provision or 648 application, and to this end the provisions of this act are 649 severable. The Legislature hereby declares that it would have 650 passed this act and, each provision of this act, irrespective of 651 the fact that anyone or more provisions of this act might be 652 declared invalid, illegal, unenforceable, or unconstitutional, 653 including, but not limited to, each of the engagement, 654 divestment, and prohibition provisions of this act. 655 Section 4. This act shall take effect upon becoming a law. Page 24 of 24 CODING: Words stricken are deletions; words underlined are additions. hb0703-01-c1 IRAN DIVESTMENT ADVOCACY CITY OF MIAMI BEACH RESOLUTION RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY'S INVESTMENT POLICY AND PROCEDURES, AS ADOPTED BY RESOLUTION NO. 95-21726 AND AMENDED BY RESOLUTION NO. 97-22315, BY INCORPORATING THE STATE'S "PROTECTING FLORIDA'S INVESTMENT ACT," (CHAPTER 2007-88, LAWS OF FLORIDA), PROHIBmNG THE INVESTMENT Of PUBLIC FUNDS MANAGED BY THE CITY IN ANY "SCRUTINIZED COMPANIES" WITH ACTIVE BUSINESS OPEAATlONS IN SUDAN OR IRAN, AS LISTED BY THE STATE BOARD OF ADMINISTRATION (SBA) ON A QUARTERLY BASIS, IN ACCORDANCE WITH THE PROVISIONS OF THE ACT. WHEREAS, Senate Bill 2142, which created Sections 215.442 and 215.473, Florida StaMes, referred to as the "Protecting Florida's Investment Acf' ("Act"l, provides a series of legislative findings relat.We to current conditions in the countries of Sudan and . Iran; and ' WHEREAS, the Act describes, in detail, declarations by the U.S. Congress, U.S. Secretary of State, and the U.S. President regarding the genocide and atrocities against the citizens of regions of Sudan; and WHEREAS, it also recognizes that Iran has failed to suspend its uranium- enrichment activities; that the United Nations Security Council and the United States have imposed sanctions against Iran; and that the United Nations has imposed an embargo on Iranian arms exports which is a freeze on assets abroad of an expanded list of individuals and companies involved in Iran's nuclear and ballistic missile program; and WHEREAS, the Act states that it is the responsibility of the State of Florida to decide how, where, and by whom financial resources in its control should be invested; and WHEREAS, moreover, it is the prerogative of the State not to participate in ownership or capital-providing capacity with entities that provide significant practical support for genocide, including certain non-U.S. companies presently doing business in Sudan; and WHEREAS, the Act also recognizes that there are financial risks with investments in publicly traded companies that have business activities in and ties to Iran's petroleum-energy sector; and WHEREAS, the Act requires the State Board of Administration (SBA) to perform certain tasks related to the "Public Fund", which is defined as aU funds, assets, trustees, and other designatees under the 8BA; and WHEREAS, the SBA is required to make its best efforts to identify all scrutinized companies in which the Public Fund has direct or indirect holdings, or could possibly have such holdings in the future; and WHEREAS, the definition of "scrutinized company" as to Sudan, includes a company with business operations in Sudan with revenues or assets linked to oil-reJated or power-production activities under certain circumstances; or a company that is 436 complicit in the Darfur genocide; or a company that supplies military equipment within Sudan undercenain conditions; and WHEREAS, the definition of "scrutinized company" as to Iran, includes a company with business operations that involve the government of Iran or certain companies, and have revenues or assets linked to Iran and involve oil-related or mineral-extraction under certain conditions; and WHEREAS, the Act requires the SBA to assemble a list of "scrutinized companies" and update it quarterly; and WHEREAS, the Public Fund is prohibited from acquiring securities of any companies on the scrutinized companies list which have active business operations in Sudan or Iran, with certain exceptions; and WHEREAS. in response to the financial risk posed by investments in companies doing business with countries that sponsors terrorists, the Securities and Exchange Commission established its Office of Global Security Risk to provide for enhanced disclosure of material infonnation regarding such companies; and WHEREAS, the current Sudan divestment movement encompasses nearly 100 universities, municipalities, states, and private pension plans; and WHEREAS, companies facing such widespread divestment present further material risk to remaining investors; and WHEREAS. it is a fundamental responsibility of the City of Miami Beach to decide where. how, and by whom financial resources in its control should be invested. taking into account numerous pertinent factors; and WHEREAS, divestiture should be considered with the intent to improve investment perfonnance and, by the rules of prudence, fiduciaries must take into account all relevant substantive factors in arriving at an investment decision; and WHEREAS, it is the prerogative and desire of the City of Miami Beach, with respect to investment resources in its control and to the extent reasonable, with due consideration for return on investment on behalf of the City and its investment beneficiaries, not to participate in an ownership or capital-providing capacity with entities that provide significant practical support for genocide, including certain non-United States companies presently doing business in Sudan; and WHEREAS, the City of Miami Beach is seriously concerned about investments in publicly traded companies with business activities in and ties to Iran's petroleum- energy sector as a financial risk to the shareholders; and WHEREAS, by investing in publicly traded companies having ties to Iran's petroleum-energy sector, the City of Miami Beach is putting the funds it oversees at substantialfmancialrisk;and WHEREAS, divestiture from markets that are vulnerable to embargo, loan restrictions, and sanctions from the United States and the international community, including the United Nations Security Council, is consistent with the rules of prudence; and WHEREAS, to protect the City of Miami Beach's assets, it is in the best interest of the City to amend the City's Investment Policy and Procedures, as adopted by 437 Resolution No. 95-21726 and amended by Resolution No. 97-22315, to prohibit the investment of public funds managed by the City in any "scrutinized companies" with active business operations in Sudan or in Iran, as listed by the State Board of Administration on a quarterly basis, in accordance with the provisions of the Act; and NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby amend the City's Investment Policy and Procedures, as adopted by Resolution 95-21726 and amended by Resolution 97-22315, by incorporating the State's "Protecting Florida's Investment Ad' (Chapter 2007-88, Laws of Rorida), prohibiting the investment of public funds in any.scrutinized companies" with active business operations in Sudan or Iran, as listed by the State Board of Administration (SBA) on a quarterly basis, in accordance with the provisions of the Act PASSED and ADOPTED this day of 2007. MAYOR ATTEST: CITY CLERK APPROVED AS TO FOAM & LANGUAGE & FOR ON 438 IRAN DIVESTMENT ADVOCACY CITY OF MIAMI RESOLUTION City of Miami Legislation CIty Hall 3500 Pan American Drive Miami, FL 33133 WINW.miamigov,com File Number: 07-0] 082 Final Action Date: 9/] ]/2007 A RESOLUTION OF THE MIAMI CITY COMMISSION AMENDING THE CITY OF MIAMI'S INVESTMENT POLICY TO AUTHORIZE INVESTMENT OF SURPLUS FUNDS IN RATED OR UNRATED BONDS, NOTES, OR INSTRUMENTS BACKED BY THE FULL FAITH AND CREDIT OF T G NT OF ISRAEL, AND TO WHEREAS, the Florida State Legislature has authorized counties and cities in Florida to invest in Israeli bonds, regardless of the bond rating; and WHEREAS, as a result of this Resolution, if acted upon, the invested money will provide the Jewish nation funding to invest in economic expansion and build up infrastructure; and WHEREAS, the City Commission finds that it is unconscionable for the City of Miami ("City") to invest public funds in companies that have business operations in or with foreign countries that sponsor terrorism and commit egregious human rights violations; and WHEREAS, as a result of this Resolution, if acted upon, none of the City's surplus dollars will support either the genocide in Sudan, or Iran's development of nuclear weapons, or North Korea and Cuba's repression of human rights; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City's Investment Policy established and adopted May 10, 2001 pursuant to Resolution No. 01-448, is amended to authorize investment of surplus funds in rated or unrated bonds, notes or instruments backed by the full faith and credit of the government of Israel, and to prohibit investments in any companies with business operations in Sudan, Iran, North Korea and Cuba, provided that such revisions satisfies specified fiduciary standards. Section 3. This Resolution shall become effective immediately upon its ~ption and signature of the Mayor.{1} City of Miami Page 1 of2 Prillted Oil: 10/4/2007 File Number. 07-01082 Enactment Number, R-07-0504 Footnotes: {1} If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. City of Miami Page 2 of 2 Printed On: 10/4/2007 . . . A<="""'" "/'-~.~..:::~:". I'~. '- '<~'~ f'~!.- .:.~\' ':~f 02.1 City of Miami Legislation Resolution 3500 Mil WWW.miamigov.com rue Number: 07..(J1082 Finl ActiOD Oate: A RESOLUTION OF THE MIAMI CITY COMMISSION AMENDING THE CITY OF MIAMI'S INVESTMENT POUCY TO AUTHORIZE INVESTMENT OF SURPlUS FUNDS IN RATED OR UNRATED BONDS, NOTES, OR INSTRUMENTS BACKED BY THE FULL FAITH AND CREDIT OF THE GOVERNMENT OF ISAAEL; AND TO PROHIBIT INVESTMENTS IN ANY COMPANIES WITH BUSINESS OPERATIONS IN SUDAN OR IRAN PROVIDED THAT SUCH REVIStONSSATlSFIES SPEciFIED FIDUCIARY STANDARDS. ' , -., ," 'WHEREAS, the Florida State Legislature has authorized Counties and cities in .FIorida to inveS1 in lsnael! bonds, .regardless of the bond rating; and '. ;' . WHEREAS, as a result of this Resolution. if acted upon, the invested money will provide the ,Jewisb nation funding to invest in economic expansion and buJld up infrastructure: and WHEREAS, the City Commission finds that it is unconscionable for the City bfMiami ("City") to , jn~ -pUb1ic funds in companies that have business operations in or witt! foreign countries that 'SpOnsor terrorism and commit egregious human rights violations; and WHEREAS., as a result of this Resolution, if acted upon, none of the City's surplus dollars will supPort either the genocide in Sudan, or Iran's development of nuclear weapons; , NOVV, THEREFORE, BE IT RESOLVED BY TH~COMMISSI0N OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City's Investment Policy established and adopted May 10; 2001 pursuant to Resolution No; 01-448, is amended to authorize investment of surpiusfunds in rated or unrated bonds, notes or instruments backed by tlie full faith and credit of the government of Israel. and to prohibit investments in any companies with business operations in Sudan or Iran provided that such revisions satisfies specified fiduciary standards. Section 3. This Resolution shaH become effective immediately upon its adoption and signature of the Mayor.{1} City of Minmi jU8MITTED INTO Th 'UBllC RECORD FC~ ITEMJ)z.j ~"(rl'r 01 Pnfr" 1 of2 ,", File Number: 07-01082 APPROVED AS TO FORM AND CORRECTNSSS- ( ; , ; /\: _; J ./ i', "I.. ~~iG~I~NDEZ . .~~" '. Footnotes: .........,.. . .....'.. ~'.~'."": {1} .If the Mayor does not sign this Resolution, it shall 'become effective a't theeOq oflei\~~~rdays' from the date it was passed and edopted. If the Mayor vetoes, this Resolutioil; it shall becgr:ri'e~';' ' effective immediately upon override of the veto Py the. City Commission; ',., " r.', 5UBMITTEOINTO THE ?UBLIC RECORD FOR ITEM~2. I ON q-(l- 01 . Ci,y ofMiflllli P/Jf:(~ 2 of J Pri"url 0..: 8123/1007 ~ ~E:~~I~:':~~~C ~clc~:::^~~SL&~:~~~~~~~ PIu.L b<<1 ..nil iii MUmri <1fia 100 Sou rh Biscaync Boulevard Sixrh Floor MOJoi, Florida, 33J31-531O Tdephone; 305-379-7000 Toll Free: 600.99'). I CPA (1272) Fax; 305-379-8200 Direct D,al' 305-96{)-1253 Email: berkowitZ@bdpb com 515 East 1o5 Ola., Bou.kvud Fifretnrh HOOT Fort Lauderdale. FL 3330] .2281 Tdepbono: 954-712-7000 ToJlF=: SOO-999-ICPA (1272) flU: 954.712-7070 """",ildpb.""" September 6, 2007 Honorable Marc D. Sarnoff, Commissioner City of Miami 3500 Pan American Drive Miami, Florida 33133 SUBMITTED INTO THE PUBLIC RECORD FOR ITEM DJ f f ON 9>-/ /-O? . Dear Commissioner Sarnoff: On September 6,2007, at the regular meeting of the City of Miami Finance Commitlee, the Committee was asked to approve a proposed resolution of tbe Miami City Commission amending the City of Miami's Investment Policy. See the proposed resolution attached. The Committee appreciates the desire of the Commissioner to authorize the investment of surplus funds in rated or unrated bonds, notes or instruments backed by the full faith and credit of the government of Israel. The Committee wishes to bring to the attention of the Commissioner that the current Investment Policy of the City of Miami does not allow investments in foreign debt instruments. The Committee unanimously recommends amending the resolution to allow the City of Mianli to invest in foreign debt rated AA or better by Moody's and Standard and Poors. The Committee recommends the following amendment to Section 2 of the proposed resolution: Section 2. The City's Investment Policy established and adopted May 10,2001 pursuant to Resolution No. 01-448, is amended to authorize investment of surplus funds in foreign bonds rated AA or better by Moody's and Standard and Poors. The Committee understands that the Commissioner wishes to give preference to bonds issued by the State of Israel. The Committee has no position with respect to this issue_ Honorable Marc D. Sarnoff, Commissioner Page 2 September 6, 2007 The Committee has considered the language in the proposed resolutions' granting clauses which includes statements that are political and social in nature. The City of Miami's Investment Policy has no such statements. The Committee beljeves that the City of Miami's Investment Policy should not contain political or social statements, and therefore the Committee unanimously is opposed to including that language in the proposed resolution. Very truJy yours, "r' /)~ f",", /../",)~ K~~,.._!d.tLaL~/ ~) Rithard A Berk6wltz, J.D., C.P.A., C1(a' On behalf of City of Miami Finance Committee cc: Eli Feinberg, Member, City of Miami Finance Committee Carol Gardner, Member, City of Miami Finance Committee Diana M. Gomez, Member, City of Miami Finance Committee Humberto Rodriguez, Member, City of Miami Finance Committee Juan Martinez, Member, City of Miami Finance Conmlittee Signed in Mr. Berkowitz's absence to prevent delay. SUBMITTED INTO THE PUBLIC RECORD FOR ITEM ])2, i ON 9-1/-07 Where were voters? Dade urges election changes - 11/07/2007 - MiamiHerald.com Page 1 of2 MiamiHerald.com ID Posted on Wed, Nov. 07,2007 Where were voters? Dade urges election changes BY BETH REINHARD Where were voters? Dade urges election changes What if they held an election and nobody came? That's what happened Tuesday in one Miami precinct, where not one ofthe 147 registered voters went to the polls at St. Paul Institutional AME Church. Five people had voted early. Overall, only 17 percent of the voters showed up in the six Miami-Dade municipalities that hosted elections, including the three biggest cities of Miami, Hialeah and Miami Beach. Can't blame the weather. The temperature reached 82 degrees, and there wasn't a drop of rain. "People need to participate in the process. This is embarrassing," said Annie Betancourt, president of the League of Women Voters of Miami-Dade and a former state legislator. "What kind ofa mandate do some of these elected officials have?" Homestead -- with a turnout of 16 percent -- featured some of the tightest squeakers in winning margins. Nazy Sierra has 19 people to thank for putting her on the City Council, while another newcomer, Melvin McCormick, is indebted to 74 voters. Councilwoman Amanda Gamer lost her seat by a mere 121 votes. "I knew it was a close race, but I didn't think it would be that close," said candidate Angel Garrote, who was ahead of Sierra until the final precincts came in. "What are the chances of that breaking down like that?" Tuesday's returns may boost a fledgling effort by the Miami-Dade Elections Department to encourage cities to merge their elections with countywide votes in even-numbered years. Currently, municipal elections are scattered throughout the calendar, catching voters off guard in the spring, summer and odd-numbered years. "It's better from a logistical and cost-savings standpoint to piggyback onto countywide elections," said elections spokeswoman Christina White. "Now that we're going to be dealing with paper ballots and a brand-new system, we would prefer for everyone to be combined." The savings would vary from city to city. Aventura, for example, would save about $60,000 if it moved a proposed special election in October 2008 to coincide with the November general election, White said. The trend has already caught on in Broward County, where cities are increasingly pushing their traditional spring elections to November. Weston and Southwest Ranches held their first fall elections last year, while voters in Coral Springs, Hallandale Beach, Lauderdale Lakes, Lauderhill, Tamarac, Parkland and Wilton Manors will choose their local representatives along with the president of the http://www.miamiherald.comlnews/breaking_news/v -print/ story /299695 .html 11/8/2007 Where were voters? Dade urges election changes - 11/07/2007 - MiamiHerald.com Page 2 of2 United States in November 2008. When Miami Beach considered such a move a few years ago, city officials said they were concerned about nationwide or statewide elections overshadowing local races, said City Manager Jorge Gonzelez. One civic activist, Miami SunPost columnist Rebecca Wakefield, took on the problem herself, determined to improve on the city's 11 percent showing in 2005. She launched a website, www.Doublethevote.com. canvassed at events like the Tuesday Morning Breakfast Club, and encouraged political activists to rouse their grass-roots networks. Wakefield met her goal: This year's turnout more than doubled to 25 percent. But Tuesday morning, candidates and campaign workers outnumbered voters at polling places such as Fire Station No.3 on Collins Avenue. "It's almost embarrassing that in a city that considers itself so hip, only 10,000 people vote in local elections," lamented Roger Abramson, 73. In Hialeah's most contentious race for City Council, incumbent Cindy Miel and Isis Garcia-Martinez were only 352 votes apart, triggering a runoff. Citywide turnout was 17 percent. "Part of it is that people are happy with their local government. They like the status quo," Hialeah Mayor Julio Robaina said. "Higher voter turnout normally comes when there is a big issue, or some sort of revolt, and obviously that's not happening in Hialeah." Sometimes it's the lack of a horse race that may leave voters nonplussed. Miami City Commissioner Marc Sarnoff faced two poorly funded, last -minute entrants, attracting the attention of only 10 percent of the voters. "I think people saw it as a foregone conclusion," Sarnoff said. "You can lead a horse to water, but you can't make them drink, and I think most of the horses knew there was an election." Miami Herald staff writers Laura Figueroa, Rebecca Dellagloria, Tania Valdemoro and Michael Vasquez contributed to this report. ~ 2007 Miami Herald Media Company. All Rights Reserved. http://www.miamiherald.com http://www.miamiherald.com/news/breaking news/v - print/story /299695 .html 11/8/2007 Eric M. Soroka ..? COJlv ~ It - ('{-.-0 7 I~~S- From: Sent: To: Subject: Kelley Whiter [whiterk@ajc.org] Wednesday, November 14, 2007 11 :24 AM Eric M. Soroka Iran Divestment Initiative: Scrutinized Companies Good morning, Eric. It was a pleasure speaking with you moments ago. In reference to Agenda Item NO.5 of today's City Commission Workshop Meeting, "Iran Divestment Advocacy," and as a supplement to the background materials available on the City Commision's website, please note the following: The State Board of Administration's ("SBA") recently issued its first quarterly report regarding the progress of its efforts to comply with the Protecting Florida's Investments Act that was signed into law on June 8,2007. In the report, which is available directly on the SBA website (i.e., www.sbafla.com). under the link for "Protecting Florida's Investments Act" (i.e., http://www.sbafla.com/imaqesllndexlflashhtml.html). the SBA states that it began to engage companies identified as "scrutinized companies" on September 19, 2007. 1. List of Scrutinized Companies. For a list of companies identified by the SBA as being engaged in prohibited activities in the Iran petroleum energy sector, i.e., "scrutinized companies," please click on the following link: http://www.sbafla.com/imaoesllndexlflashhtml.html. For a list of companies identified by the SBA as requiring continued examination with activities in the Iran petroleum energy sector, please click on the following link: http://www.sbafla.com/imaqes/lndexlflashhtml.html. 2. Copies of Letters from the SBA to the Investment Manaoers. According to the SBA website, "because the SBA has not assembled any Scrutinized Company lists prior to the [October 2007] quarterly report, there have been no investment manager engagement activities to date." Copies of these sample letters should be available once the second quarterly report scheduled for December 2007 is issued, which will contain updated information on SBA's investment manager engagement efforts. Please click on the following link for a sample letter from the SBA to Total SA, a French company identified on the scrutinized company list that is engaged in prohibited activities in Iran (i.e., http://www.sbafla.com/imaqes/lndex/slsci.pdf). Please note that all companies listed as scrutinized companies received copies of such a letter. The companies listed as needing continued examination also received similar letters from the SBA. I hope that this information is helpful. Please feel free to contact me with any questions or comments regarding the foregoing. Regards, :KJletj Kelley Whiter Director of Community Outreach American Jewish Committee Greater Miami and Broward Chapter 5890 South Pine Island Road, Suite 241 Davie, Florida 33328 Phone: (954) 252-6222 Fax: (954) 252-6644 Cell: (954) 260-8977 Email: whiterk@aic.orq The American Jewish Committee, founded in 1906, is one of the most prominent human relations organizations in the world. Its primary mission is to protect the rights and liberties of all minority groups and to strengthen understanding between diverse racial, ethnic and religious communities. 1