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HomeMy WebLinkAboutPR 20110: CITY TO PARTICIPATE IN TEXAS CLASS LOCAL GOVERNMEN INVESTMENT POOL _ �J 4 City of nrt rthu � Texas www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: February 13, 2018 To: The Honorable Mayor and City Council Through: Harvey Robinson, Interim City Manager From: Andrew Vasquez, Finance Director )1/4) RE: PR No. 201 to , Authorize the City to participate in Texas Class, a local government investment pool and authorize City representatives to conduct transactions with the pool. Introduction: Request a resolution to authorize the City to participate in Texas Class, a local government investment pool and to authorize City representatives to conduct transactions with the pool. Background: The City of Port Arthur maintains liquidity within the investment portfolio by investing in pools, which offer daily liquidity and access to the City's money. It is in the best interest of the city that the investment portfolio be diversified to minimize the risk resulting from an over concentration of assets with a specific issuer or pool provider or in a specific class of securities/investment instruments and to maximize potential interest income within state law and the City's conservative and prudent investment guidelines. The City of Port Arthur is currently a participant in Texas Local Government Investment Pool (TexPool) and the Texas Short Term Asset Reserve Fund (TexStar). Both pools were authorized previously by City Council resolution and by the City's investment policy. Texas Class is a similar public funds investment pool with comparable rates,whose primary investment objective is the preservation and safety of principal, liquidity and yield consistent with the Public Funds Investment Act and is an authorized investment for the City. _7- "Remember, "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 City of \1 ort rthu�_ Texas www.PortArthurTx.gov The list of representatives authorized to conduct transactions with the pool is requested to be Andrew Vasquez, Finance Director, Harold Hankins, Assistant Finance Director and Kandy Daniel, Assistant Finance Director. Budget Impact: None Recommendation: It is recommended that City Council approve a resolution authorizing the City to participate in Texas Class, a local government investment pool and to authorize City representatives to conduct transactions with the pool, as discussed above. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R. No. 20110 2/6/18 JNP RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY TO PARTICIPATE IN TEXAS CLASS, A LOCAL GOVERNMENT INVESTMENT POOL, AND AUTHORIZE CITY REPRESENTATIVES TO CONDUCT TRANSACTION WITH THE POOL. WHEREAS , the Public Funds Investment Act, Texas Government Code, Section 2256.001 et seq. (the "Act"), requires the governing body of each local government in this State to adopt investment policies in accordance with the terms of the Act; and WHEREAS, pursuant to the requirements of the Act, the Board of Trustees (the "Governing Body") of the City of Port Arthur (the "Local G overnment ") has previously reviewed and adopted an investment policy (the "Policy") that provides in part that the funds of the local government will be invested in investments permitted by the Act in order to: (i) invest only in investments legally permitted under Texas law ; ( ii) minimize risk by managing portfolio investments so as to preserve principal and maintain a stable asset value; ( iii) manage portfolio investments to ensure that cash will be available as required to finance operations; and (iv) maximize current income to the degree consistent with legality, safety and liquidity; and WHEREAS, pursuant to the Policy and the Act, the Local Government has appointed Andrew Vasquez (the "Investment Officer") to act as the investment officer of the Local Government; and WHEREAS, the Act provides that funds under the control of a Local Government may be invested through investment pools meeting the standards of Section 2256.016 of the Act; and WHEREAS, the Local Government has received and reviewed the Information Statement, dated December, 2016 (the "Information Statement"), of Texas Cooperative Liquid Assets Securities System, an investment pool administered by Public Trust Advisors, LLC, (the "Program"), which sets forth the information required by Section 2256.016(b) of the Act; and WHEREAS, the Local Government has determined that the investments proposed to be acquired by the Program are of a type that are permitted by the Act and are consistent with the Policy; and WHEREAS, the Local Government has determined that an investment in the Program will assist the Local Government in achieving the goals set forth in the Policy, and will tend to preclude imprudent investment activities arising out of investment transactions conducted between the Local Government and the Program; and WHEREAS, the Local Government understands that the Program operates through the Seventh Amended and Restated Trust Agreement dated as of August 5, 2016 (the "Trust Agreement"), which provides the terms on which the Program will operate and the rights of the participants in the Program and sets forth the responsibilities of Public Trust Advisors, LLC, as the administrator of the Program (the "Administrator"), and of Wells Fargo Bank as custodian (the "Custodian). NOW THEREFORE, BE IT RESOLVED BY THE CITY OF PORT ARTHUR: THAT the City Council hereby authorizes the City to participate in Texas Class, A Local Government Investment Pool, and authorize City Representatives to conduct transaction with the Pool, as delineated in Exhibit "A" attached hereto. THAT the form, terms and provisions of the Trust Agreement, in substantially the same form as attached hereto as Exhibit "A", was presented, providing for the creation of the Program and for the rights of the Program participants and the duties and responsibilities of the Administrator, be and the same are hereby approved and adopted; and that the Investment Officer be and he or she is hereby authorized and directed to execute and deliver to the Administrator and the Custodian in the name and on behalf of the Local Government, a participation certificate evidencing the agreement of the Local Government to be bound by the Trust Agreement substantially in the form of the Trust Agreement reviewed and approved at this meeting, together with such changes therein as may be approved by the said officer, such approval to be conclusively evidenced by the execution thereof. THAT the investment program established by the Trust Agreement is hereby found and determined to be consistent with the Policy, and to preclude imprudent investment activities arising out of investment transactions conducted between the Local Government and the Program. THAT the Governing Body hereby officially finds and determines that the facts and recitations contained in the preamble of this Resolution are true and correct; and be it further THAT the Governing Body hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted for the time required by law preceding this meeting, and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter thereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act. THAT the officers of the Local Government, and each of them, shall be and each is expressly authorized, empowered and directed from time to time to do and perform all acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the Local Government all certificates, instruments and other papers, whether or not herein mentioned, as they may determine to be necessary or desirable in order to carry out the terms and provisions of this Resolution and of the Trust Agreement hereby authorized and approved, such determination to be conclusively evidenced by the performance of such acts and things and the execution of any such certificate, financing statement, instrument or other paper. THAT this Resolution shall take effect and be in full force and effect upon and after its passage. READ, ADOPTED AND APPROVED on this day of February, A.D. 2018, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: , Councilmembers: , • NOES: . Derrick Freeman, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: V;ci 4 1 Val Tizeno, Ci Attorney APPROVED FOR ADMINISTRATION: Harvey Robinson, Interim City Manager AVAILA ILITY OF FUNDS: 0.1, I( Y ."--------- Andrew Vasquez, Director of Finance EXHIBIT "A" Texas CL �� Texas Cooperative Liquid Assets Securities System Trust Resolution to Participate WHEREAS, the Public Funds Investment Act, Texas Government Code, Section 2256.001 et seq. (the "Act"), requires the governing body of each local government in this State to adopt investment policies in accordance with the terms of the Act; and WHEREAS, pursuant to the requirements of the Act, the Board of Trustees (the "Governing Body") of the City of Port Arthur (the "Local Government") has previously reviewed and adopted an investment policy (the "Policy") that provides in part that the funds of the local government will be invested in investments permitted by the Act in order to: (i) invest only in investments legally permitted under Texas law; (ii) minimize risk by managing portfolio investments so as to preserve principal and maintain a stable asset value; (iii) manage portfolio investments to ensure that cash will be available as required to finance operations; and (iv) maximize current income to the degree consistent with legality, safety and liquidity; and WHEREAS, pursuant to the Policy and the Act, the Local Government has appointed Andrew Vasquez (the "Investment Officer") to act as the investment officer of the Local Government; and WHEREAS, the Act provides that funds under the control of a Local Government may be invested through investment pools meeting the standards of Section 2256.016 of the Act; and WHEREAS, the Local Government has received and reviewed the Information Statement, dated December, 2016 (the "Information Statement"), of Texas Cooperative Liquid Assets Securities System, an investment pool administered by Public Trust Advisors, LLC, (the "Program"), which sets forth the information required by Section 2256.016(b) of the Act; and WHEREAS, the Local Government has determined that the investments proposed to be acquired by the Program are of a type that are permitted by the Act and are consistent with the Policy; and WHEREAS, the Local Government has determined that an investment in the Program will assist the Local Government in achieving the goals set forth in the Policy, and will tend to preclude imprudent investment activities arising out of investment transactions conducted between the Local Government and the Program; and WHEREAS, the Local Government understands that the Program operates through the Seventh Amended and Restated Trust Agreement dated as of August 5, 2016 (the "Trust Agreement"), which provides the terms on which the Program will operate and the rights of the participants in the Program and sets forth the responsibilities of Public Trust Advisors, LLC, as the administrator of the Program (the "Administrator"), and of Wells Fargo Bank as custodian (the "Custodian"); 717 17th Street, Suite 1850 T 855-707-6242 clientservices@texasclass.com Denver, Colorado 80202 F 855-848-9910 www.texasclass.com Page 3 Texas CL �� Texas Cooperative Liquid Assets Securities System Trust NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE LOCAL GOVERNMENT: That the form, terms and provisions of the Trust Agreement, a draft of which was presented and reviewed at this meeting, providing for the creation of the Program and for the rights of the Program participants and the duties and responsibilities of the Administrator, be and the same are hereby approved and adopted; and that the Investment Officer be and he or she is hereby authorized and directed to execute and deliver to the Administrator and the Custodian in the name and on behalf of the Local Government, a participation certificate evidencing the agreement of the Local Government to be bound by the Trust Agreement substantially in the form of the Trust Agreement reviewed and approved at this meeting, together with such changes therein as may be approved by the said officer, such approval to be conclusively evidenced by the execution thereof; and be it further Resolved, that the investment program established by the Trust Agreement is hereby found and determined to be consistent with the Policy, and to preclude imprudent investment activities arising out of investment transactions conducted between the Local Government and the Program; and be it further Resolved, that the Governing Body hereby officially finds and determines that the facts and recitations contained in the preamble of this Resolution are true and correct; and be it further Resolved, that the Governing Body hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted for the time required by law preceding this meeting, and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter thereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act; and be it further Resolved, that the officers of the Local Government, and each of them, shall be and each is expressly authorized, empowered and directed from time to time to do and perform all acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the Local Government all certificates, instruments and other papers, whether or not herein mentioned, as they may determine to be necessary or desirable in order to carry out the terms and provisions of this Resolution and of the Trust Agreement hereby authorized and approved, such determination to be conclusively evidenced by the performance of such acts and things and the execution of any such certificate, financing statement, instrument or other paper; and be it further Resolved, that this Resolution shall take effect and be in full force and effect upon and after its passage. Derrick Freeman, Mayor Authorized Signature Date Printed Name ATTEST: Sherri Bellard, City Secretary Authorized Signature Date Printed Name 717 17t`' Street, Suite 1850 T 855-707-6242 clientservices@texasclass.com Denver, Colorado 80202 F 855-848-9910 www.texasclass.com Page 4 Texas CLs. Texas Cooperative Liquid Assets Securities System Trust Exhibit D - Participation Certificate The undersigned City of Port Arthur (the "Local Government") does hereby request that it be admitted as a Participant pursuant to Section 2.3 of the Seventh Amended and Restated Trust Agreement (the "Agreement") dated as of August 5, 2016 by and between the Participants, Wells Fargo Bank, as Custodian, and Public Trust Advisors, LLC. By executing this Participation Certificate, the undersigned agrees that, upon the execution hereof by the Program Administrator, it will become subject to the same obligations and shall have the same rights as if it had executed the Agreement. The undersigned hereby certifies that Andrew Vasquez (the "Investment Officer") is the duly designated Representative of the undersigned as required by the Agreement. The undersigned hereby certifies that its governing body has taken all actions required by Section 2256.016 of the Public Funds Investment Act, Texas Government Code, in order for it to participate in the Trust created by the Agreement. City of Port Arthur Entity Name Finance Director Signature Date Title Accepted by Administrator (to be completed by Texas CLASS): Signature Date Title 717 17th Street, Suite 1850 T 855-707-6242 clientservices@texasclass.com Denver, Colorado 80202 F 855-848-9910 www.texasclass.com Page 5 Texas CL �� Texas Cooperative Liquid Assets Securities System Trust Trust Registration Entity Information Entity Name (Participant) City of Port Arthur Entity Type: Ei City/Town ❑County ❑School District ❑ Special District ❑Other (Specify) Mailing Address P.O. Box 1089 City Port Arthur Zip 77641 County Jefferson Tax ID 746001885 Fiscal Year (Month/Day) 10/01 The City of Port Arthur (the "Local Government") hereby wishes to invest in the following portfolio: ❑ Texas CLASS ❑� Texas CLASS Government ❑ Both Texas CLASS is hereby authorized to honor any telephone, faxed or electronic request, believed to be authentic, for withdrawal of funds. The withdrawal proceeds can be sent only to the bank(s) indicated below unless changed by written instructions. Each local government is responsible for notifying Texas CLASS of any changes to its account. Banking Information Bank Name Capital One Bank, NA Bank Routing Number (ABA) 111901014 Account Title Consolidated Cash Account Account Number 3622036494 Bank Contact Tom Govan Contact's Phone Number 225-663-3551 Additional Banking Information (Optional) Bank Name Bank Routing Number (ABA) Account Title Account Number Bank Contact Contact's Phone Number 717 17th Street, Suite 1850 T 855-707-6242 clientservices©texasclass.com Denver, Colorado 80202 F 855-848-9910 www.texasclass.com Page 6 Texas CL4S Texas Cooperative Liquid Assets Securities System Trust Authorized Contacts Key Contact and Authorized Signer ❑� Mr.❑ Ms. Andrew Vasquez Finance Director Print First and Last Name Title 409-983-8174 Signature Required Phone andrew.vasquez@portarthurtx.gov Email Fax Permissions (must check one) Email Notifications Online Account Authorized Signer to Move Funds* E Monthly Statements ❑✓ Online User Access E Transaction Confirmations Additional Contact (Optional) O Mr.❑ Ms. Harold Hankins Assistant Finance Director Print First and Last Name Title 409-983-8106 Signature (required if Authorized Signer) Phone harold.hankins@portarthurtx.gov Email Fax Permissions (must check one) Email Notifications Online Account ❑✓ Authorized Signer to Move Funds* E Monthly Statements E Online User Access ❑Read Only Access 111Transaction Confirmations Additional Contact (Optional) F-7 Mr.Q Ms. Kandy Daniel Assistant Finance Director Print First and Last Name Title 409-983-8163 Signature (required if Authorized Signer) Phone kandy.daniel@portarthurtx.gov Email Fax Permissions (must check one) Email Notifications Online Account ❑r Authorized Signer to Move Funds* E Monthly Statements E Online User Access ❑ Read Only Access Transaction Confirmations 717 17"^ Street, Suite 1850 T 855-707-6242 clientservices@texasclass.com Denver, Colorado 80202 F 855-848-9910 www.texasclass.com Page 7 Texas CI1S Texas Cooperative Liquid Assets Securities System Trust Accounts to be Established Entity Name: City of Port Arthur Texas CLASS Accounts Texas CLASS Government Accounts Desired Subaccount Names)*: Desired Subaccount Name(s)': (To be completed by Participant) (To be completed by Participant) Concentration Account *Name must be limited to 30 characters. 717 17th Street, Suite 1850 T 855-707-6242 clientservices@texasclass.com Denver, Colorado 80202 F 855-848-9910 www.texasclass.com Page 8