HomeMy WebLinkAboutRES NO 064-14RESOLUTION NO. 06 4-14
A RESOLUTION OF THE CITY OF BAKERSFIELD
SUPPORTING PUBLIC INVESTMENT OF KERN
COUNTY EMPLOYEES' RETIREMENT
ASSOCIATION FUNDS IN THE CITY OF
BAKERSFIELD AND THROUGHOUT KERN
COUNTY.
WHEREAS, the Kern County Employees' Retirement Association ( "KCERA ")
provides eligible Kern County, special district, and court employees, retirees,
and their beneficiaries with retirement, disability, and death benefits that are
financed by employer and employee contributions and by earnings on the
investment of these contributions; and
WHEREAS, Government Code Sec. 31595 requires the KCERA Retirement
Board to exercise "care, skill, prudence, and diligence" in discharging its duties
to participants and beneficiaries, and to "diversify the investments of the system
so as to minimize the risk of loss and maximize the rate of return "; and
WHEREAS, KCERA's Statement of Investment Policy permits the investment
manager to exercise discretion, subject to Retirement Board notification and
oversight, to execute investment transactions that fulfill the objectives of the
Investment Policy, which are to earn sufficient long -term rates of return, long-
term capital growth, and returns in excess of inflation in order to preserve the
purchasing power of Retirement Fund assets; and
WHEREAS, the Investment Policy also permits KCERA to make opportunistic
investments outside of the Fund's current asset allocation that are intended to
take advantage of specific market conditions in order to earn greater returns,
provided that opportunistic investments do not exceed 10% of the Fund's total
portfolio and that individual opportunistic strategies do not exceed 3% of the
portfolio; and
WHEREAS, the Investment Policy allocates KCERA's current assets among
seven classes including U.S. and foreign equities, fixed income, real estate,
commodities, hedge funds, and private equities; and
WHEREAS, Kern County's and the City of Bakersfield's sizable and diverse
economy may hold opportunities for KCERA to earn returns on investments in
commodities, real estate, and private equities that meet KCERA's requirements
of rate of return vs. risk of loss; and
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WHEREAS, local investment of a share of KCERA's assets would help to
stimulate economic growth within the City of Bakersfield and Kern County; and
WHEREAS, KCERA has not adopted a process to enable evaluation of the
feasibility of local investment opportunities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Bakersfield as follows:
1. The above recitals are true and correct and are incorporated
herein by reference.
2. The City Council recognizes that the Board of Retirement of KCERA
has a fiduciary responsibility to its members to earn the highest
investment returns possible for the least amount of risk.
3. If the Board of Retirement of KCERA can authorize Retirement Fund
investments in local enterprises doing business in the City of
Bakersfield and throughout Kern County, while meeting this fiduciary
responsibility, it should consider doing so.
4. The City Council supports a KCERA policy of allowing the investment
of KCERA funds in the City of Bakersfield and throughout Kern
County.
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
MAY 0 7 2014 , by the following vote:
✓ f f or ✓'
YES' COUNCIL MEMBER RIVE &A, MAXWELL, WEIR, SMITH, HANSON, SULLIVAN, JOHNSON
OES: COUNCIL MEMBER
ABSTAIN: COUNCIL MEMBER
COUNCIL MEMBER
APPROVED MAY 0 71014
C
ROBERTA GAFFO , CMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
r"
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
1�
JOSHUA H. RUDNICK
Deputy City Attorney
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