Ordinance 1919CITY OF ALAMEDA ORDINANCE NO. 1919
New Series
AMENDING ORDINANCE NO. 1062 N.S. BY AMENDING
SECTION 6 AND SUBSECTION (o) OF SECTION 2 THEREOF
RELATING TO MANAGEMENT OF TBE PENSION FUND
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ALAMEDA that:
Section 1 Section 6 of Ordinance No. 1082 N.S. is
hereby amended to read as follows:
Section 6 Management of Pension Fund
(a) The Board shall have exclusive control of the
administration, investment and disbursement of said fund,
subject to the restriction that no investment shall be
made except upon the affirmative vote of at least three
(3) members of the Board, except as otherwise provided
herein. The Board may make investments, subject to such
provisions as may be prescribed by law for the investment
of municipal funds therein, in permitted securities,
provided that, not more than twenty -five percent (25 of
the value of the fund may be invested in stocks or shares.
For purposes of determining the amount of the percentage
of the fund in stocks or shares, the cost of the stocks
or shares will be assigned the value of their purchase
price. The Board, subject to such provisions as may be
prescribed by law for the deposit of municipal funds in
banks, may deposit cash belonging to the Pension Fund in
any licensed national bank or banks in this State, or in
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any bank, banks or corporations authorized or licensed
to do a banking business and organized under the laws of
this State.
(b) The Treasurer of the City shall be responsible
for the custody of deposits and securities of the Pension
Fund, subject to the exclusive control of the Board as to
the administration, deposit and investment of said fund.
Interest on any cash and on any investment constituting a
part of the said fund shall be paid into said fund as
received.
(c) Except as herein provided, no member and no
employee of the Board shall have any interest, direct or
indirect, in the making of any of above said investments,
or in the gains or profits accruing therefrom. No member
or employee of the Board, directly or indirectly, for
himself or as agent or partner of others, shall borrow any
of its funds or deposits or in any manner use the same
except to make such current and necessary payments as are
authorized by the Board; nor shall any member or employee
of the Board become an endorser or surety or become in any
manner an obligor for moneys invested by the Board.
(d) The Board may secure from competent investment
counsel, not a member of the Board, such counsel and
advise as to investing funds as it deems necessary. The
Board, at its option, may grant discretionary powers for
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day -to -day investment decisions in permitted securities
to an investment counselor. Counsel shall act with the
same care that a prudent man, who was familiar with such.
matters, would exercise when acting in a like capacity
in a similar enterprise having similar purposes.
(e) Investment counsel shall provide to the Pension
Board, not less frequently than quarterly, an accounting
of all invested capital of the fund. This report shall
consist of, but not be limited to, a valuation of all
investments of the fund and an estimate of the current
rate of income.
Section 2 Subsection (o) of Section 2 of ordinance
No. 1082 N.S. is hereby amended to read as follows:
(o) "Permitted Securities" shall mean:
(1) Bonds, debentures, notes and other evidences of
indebtedness rated A or higher by one of the major
rating services;
(2) Commercial paper of print quality as defined by one
of the major rating services and may not exceed two
hundred seventy (270) days in maturity;
(3) Common and preferred stocks registered on a national
securities exchange, as provided in the "Securities
Exchange Act of 1934" as amended. Such registration
shall not be required with respect to the following
stocks:
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(i) The common stock of a bank which is a member
of the Federal Deposit Insurance Corporation
and has capital funds, represented by capital,
surplus and undivided profits, of at least
fifty million dollars ($50,000,000);
(ii) The common stock of an insurance company which
has capital funds, represented by capital,
special surplus funds and unassigned surplus,
of at least fifty million dollars ($50,000,000);
(4) Common Stocks which have paid a dividend for the
last ten (10) consecutive years and have assets over
fifty million dollars ($50,000,000);
(5) convertible securities where the common stock of the
corporation would qualify for investment; and
(6) Negotiable instruments of the City of Alameda issued
pursuant to Article 7, 7.6 and 7.7 of Chapter 4 of
Part 1 of Division 2 of Title 5, as amended, of the
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Government Code of the State of California.
Section 3 This ordinance shall be in full force and
effect from and after the expiration of thirty (30) days from
the date of its final passage.
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Attest: Presiding Officer of the Council
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City Clerk
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I, the undersigned, hereby certify that the foregoing Ordinance was
duly and regularly adopted and passed by the Council of the City of Alameda
in regular meeting assembled on the 18th day of April, 1978 by the following
vote, to wit:
AYES: Councilmen Beckam, Oiament, Sherratt, and Tillman, (4).
NOES: None.
ABSENT: President Corica, (1).
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 19th day of April, 1978
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City Clerk of the City of Alameda
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