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HomeMy WebLinkAboutDocumentation_Regular_Tab 12_12/11/2014 VILLAGE CLERK'S OFFICE AGENDA ITEM TRANSMITTAL FORM Meeting Date: Meeting Type: Regular Ordinance #: 24-14 (as amended following 12/11/14 first reading) Consent Agenda: No Resolution #: N/A Originating Department: Pension Attorney '� t�RDINANCE 24-14, SECOND READING, AMENDING THE VILLAGE CODE OF ORDINANCES AT CHAPTER 2. ADMINISTRATION. ARTICLE III. OFFICERS, EMPLOYEES AND DEPARTMENTS. BY AMENDING THE GENERAL EMPLOYEES' PENSION PLAN TO AMEND THE FINANCE AND FUND MANAGEMENT PROVISION REGARDING INVESTMENTS IN REAL ESTATE — Pension Attomey Bonnie Jensen � . . •, Account #: Amount of this item: Current Budgeted Amount Available: Amount Remaining after item: N/A Budget Transfer Required: No Appropriate Fund Balance: No � ' � � •' . .-•-• . . Department Head Submitted by Legal --� �'� pn Finance Director } =,z,� b�e-c� , ��....-�� ��cS Ssl d'`�. Reviewed for Financial Sufficiency ❑ � ��; ,�, � ;,� � � ���,,,.. 5 , ��z�.c-�� �f� No Financial Impact ❑ ;� Attorney: (for lega� sufficiency) Village Manager: - Submit for Council Discussion: [� Approve Item: ❑ Deny Item: � � • • - . . - .. - - . -. .- . .- - .- . .. - . . -. . . . . . - . - Form Amended: 7/12/12 ORDINANCE NO. 24-14 AN ORDINANCE OF TAE VII,LAGE COUNCIL OF THE VII.,LAGE OF TEQUESTA, FLORIDA, AMENDING 'THE VII.LAGE CODE OF ORDINANCES AT CHAPTER 2. ADIVIINISTRATION. ARTICLE III. OFFICERS, EMPLOYEES AND DEPARTMENTS. BY AMENDING THE GENERAL EMPLOYEES' PENSION PLAN TO AMEND THE FINANCE AND FUND MANAGEMENT PROVISION REGARDING INVESTMENTS IN REAL ESTATE; PROVIDING THAT EACH AND EVERY OTHER SECTION AND SUBSECTION OF CAAPTER 2. ADMII�TISTRATION. SFIALL REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ADOPTED; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, the Board of Trustees of the General Employees' Pension Plan desired to expand the permissible investmeats in the Plan; and WHEREAS, the Village Council of the Village of Tequesta desires to amend the Public Safety Employee Pension Plan to reflect the provision of these benefits. NOW, TI�REFORE, BE IT ORDAINED BY THE VII..LAGE COUNCIL OF TI� VILLAGE OF TEQUESTA, FLORIDA, THAT: Section 1: Chapter 2. Administration. of the Code of Ordinances of the Village of Tequesta is hereby amended at Article III. Officers, Employees and Departments, Section 2-61. Pension Trust Funds. by amending Exhibit A(General Employees' Pension Trust Fund) to provide, for expansion of the permissible investments in real estate to o�n-ended real estate li.mited partnerships and trusts and to maintain the restriction from investments in real estate in closed end limited partnerships and trusts; providing that Exlubit A(General Employees' Pension Trust Fund) of Sec. 2-61. shall hereafter read as follows: [Exhibit A is aznended as follows:] EXfIIBIT "A" VII.,LAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND Section 5. Finance And Fund Managemen� Establishment and Operation of Fund. � � � Page 1 of 2 6. The Board of Trustees shall ha.ve the following investment powers and authority: � �w � M. A Board sha11 not invest more than ten percent (10%) at cost of its assets in real properiy or real estate and there sha11 be no real estate investment in a closed-ended limited partnership or a closed-ended trust. In addition. anv investments iw real estate in onen ended limited nartnershins or ouen ended trusts are limited to those oaen ended core real estate products which meet the criteria for the NCREIF ODCE. Section 2: Each and every other Section and Subsection of Chapter 2. Administra.tion. shall remain in fiill force and effect as previously adopted. Section 3: All ordi.nances or parts of ordinances in conflict be and the same are hereby repealed. Section 4: Should any section or provision of this Ordina.nce or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder of this Ordinance. Section 5: Specific authority is hereby granted to codify this Ordinance. Section 6: This Ordinance sha11 take effect immediately upon passage. Page 2 of 2 McWilliams, Lori From: Bonni Jensen [bonni�robertdklausner.com] Sent: Tuesday, November 1 S, 2014 5:12 PM To: k�ith�cwd-legai.com Cc: Michael Rhodes; Mc�lliams, Lori; Cou�o, Michael; Robert(�youngfs.com; Giblin, Raymond; bsjteam; Dixie Martinez; Tyler Grumbles SubJect: Tequesta GE and PSO Pension Funds - Amendment for Real Estate Investments Attachm�nts: ORD -14 GE pension - investments.docx; ORD -14 Firefighter pension - investments.docx; ncreif index criteri.�f; NCREIF Data and Products Guide.pdf Keith, As a follow up to the last Village Commission meeting, attached is a revised Ordinance amendin� the Pension Plans' investment provisions to limit the real estate investment to those real estate investments that meet the criteria to be a part of the NCREIF ODCE. Attached is the criterta for the NCREIF ODCE index and a Guide explaining the criteria. In summary, the criteria are: 1. Open end fund product for institutional investors. 2. Marketed as open ended. 3. Must be core real estate meeting the following criteria: a. at least 80% invested in real estate and no more than 20% in cash or cash equivalents b. at least 80'�6 of market value of real estate net assets in private equity real estate properties c. at least 95�0 of market value of real estate net assets in US markets d. at least 80'/ of market value of real estate net assets invested in ofFice, industrial, apartment, and retail property types e. at least 80'�0 of market value of real estate net assets invested in operating properties [no more than 20% of such assets invested in, but not limited to, (pre)development/redevelopment or initial leasing/lease-up cycles] f. no more than 40% leverage �. no more than 65% (t for market forces) of market value of real estate net assets in one property type or one region as defined by the NCREIF Property Index (uNPI" 4. The fund must have annual audits, quarterly valuations and time weighted returns. Please contact me if you have any questions. To make sure that your email is handled in a timely manner, please copy BSJTeam@robertdklausner.com. Bonni S.lensen Klausner, Kaufman, Jensen & Levinson 400 Executive Center Drive, #207 West Palm Beach, Florida 33401 Telephone: 561-686-6550 bonniCa�robertdklausner.com �F, �; ,� 10059 Northwest 1st Court 1 Plantation, Florida 33324 Telephone: 954-916-1202 Facsimile: 954-916-1232 CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. z � � � � ee e �0 i The Fund Index Data Contributing Manager (FlDGM) must be an irnestmerit managemerrt company offerin� an open-end fund product that is operated for fnstltutional investors and avaU�ble to U.S. �eflned Beneflt Plans. 2 The fund must be marketed as an open-end fund. If at emr time a fund closes to new contrlbutlons and redemptions, NCREIF StafF wlll have the dtscretion to discontinue the fund in the index (hlstorical date will remain in the Irtdex). Ail exdusions and deletions arill be reported to the 6oard of Directors with adherence to the NCREIF date masking crtteria to allow for review. 3 Subject to meeUng Index crfCerla, the fund a+ill 6e Included for the tirst fuli period of opereUans. Inftial and ending partlal quarters of the fund will not be included. 4 The funrl must market itseff as a diversffied core investmerrt strategy, primarlly investing in p�ivaie equity real estate, as followrs: Real Estate — at least 8096 of market value of net assets Es Invested in real estate [no more than 20� of such assets invested in cash and/or cash equivalents] Investrne� — at leest 80� of market value of real estate net assets in private equity real estate propertles [no more than 2�J5 of such ass�ts invested in, but nnt Ilmited to, property debt, public companq equfty/debt or private company (operating 6usiness) equlty/debt] Domaln — least 95� of market value of real esCate net assets in US markets Property Ty� — at ieast 8096 of market walue of real estate net assets invested ln offlce, industrial, apartmerrt, and retail property t}rpes Life Cyde — at least SO% of market velue of real estate n�t assets fnvested in operating propartles [no more than 2035 of such assets invested in, but not Ilmited to, (prejdevelqpmerrt/redevelopmerrt or initlal leasin�/lease-up cycies) Leverage-- no more than 40°h leverage, Lev�rage is deflned as the ratio of total debt, �rassed-up for ownership share of off-balance sheet debt, to the fund's total assets, also which are grossed-up for such off-balance sheet debt. Dlversffication — no more than 654� (f for market farces) of market value of real estate net assets tn one properly type or one re�ion as deftned bythe PKREIF Property Index �"NPI") 5 The fund must camply w�tth the NCREIF Resl Estate Information Stendards; indudtng annual audits, quarterly valuallons and time- wefghted retums. Further, the fund must submR Informatlon in accorda�e writh the NCREIF Fund Data CoUectlon and Reporting Manua) (timely, accurate and industry compliarrt data is requfred}. 6 The Palicy of ODCE is that tumover in the Index should be limtted and avofded when possible. If any criteria as specifled in ODCE poliry number 4 are violated during a quarter, a NCREIF Executtve StefF member wtll discuss the cfrcumstances (temporary vs. permanent change) with the fund's portFolio manager. After four consewtive quarters of crReria violation, ihe WCREI F Executive Staff will have responsibftity to decide whether or not to exclude the fund from tJie Index. That sald, If the violatlon ls a result of a permanerrt fund mana�ement or strategy change, the NCREIF F,xecutive 5taff will have the ability to wabe the four consecutfve quarter requtrement and begin exclusion procedures from the index at any time. In all � a removal decision will be made by the NCREIF Executtve Staff after consukatlon w�ith the NCREIF Executive Mana�emerrt Commtttee. !is soon as a Fund violates ODCE policy number 4, the NCREIF Executive Staff wtll notify the designated representafive of the fund to discuss the non-compliance Issue and reiterate that compilance is required to stay in the Index. If the NCREIF executive staff decides to remove a vlolating fund from ODCE, NCREIF will give tFre fund at least one fui( quarter rwtlflcatfon af the pendtng excluslon (cailed the NCREIF Exduslon Nottc�). Once a NCREIF Exclusion Notice has been issusd, the fund has urrtil the end of that next quarter to achieve compliance and must further remain in campliance for at least the following four consecutive quarters to diffuse the issued exclusbn notice. If not, the fund may be removed from the index calculations In the quarter following the NCREIF Exclusion NoUce's removal date or fn any of the foilowing four quarters ff nonwmpllance retums, as directed by the NCREIF executive staff. Remaval decisions with an explanation for rernoval wlll be communicated to the NCREIF eoard of Directors with adherence to the NCREIF data masking critteria, to allow for revlear and consideratlon of appropriate dtsdosure arith reports. Re-indusion Criteria: The NCREIF Execuilve Staff w�lll heve the responsibilfiy to decide to allrna a fund that hes been removed from ODCE to reenter the index if the fund has compiled wfth the ODCE Index pollcy numher 4 Inclusion crlteria for a mlNmum of four consecutive quarters, demonstratln� the fund's abllity to mairrtaln compliance going forward. If futvre Uke-vlolatlons occur, and the NCREIF Executive StafF determines that the fund ts not complairrt with the sptrit of the Index criteria, exclusion procedures from the index �n be brought forth at any Hme. 7 FIDCM must supply preliminary snapshot data aulthtn 5 to 11 business days following quarter-end as well as flnal quarterly data to NCREIF by the 25th day of the month following quarter-end, thereby allowin� MCREIF appropriate time to review, plculate and anal�rze the results p�lor eo releasing the final tndex at the end of the mo�h after quarter�nd. NCREIF will require approval/sign-off of Individual fund data prior to publication. If data fs not submitted on tlme, then NCREIF avill recommend to the tdCREIF Board whether to delay ar release the I�deac. FlDCM also must provide NCREIF with flash, quarterly and annual reports of each fund, wrhen avatlable. The preferred format is electronic; however, hard copies wili be eccepted. General Ir�ex information in �e a�gregate wrill be available throu�h NCREIF's arebsite, uwwv.ncreif.org. Indfvidual fund-level tnformation will not be made avallable to the public i'age 9 � �._; - - � ;, ;; , .r ; , , �' �;' _ � � _ ,; .Jr f� r,� _ .-. j � / � � � L... �_ �r'r r i.- `- r<< � r � � �_ - r� r� ' i � ._ _ r� , � � t : �� - , ' .:. /r rr .'Y iL - t ' • l:�� �� r � ik _- - ��,�fr - �- , ��_� , r � �� �� ^'.__ ._._ ` % % r F _ ` _ - �. � �� L- � . ' �. _I- Y- L' ',� % � ��:. 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