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HomeMy Public PortalAboutResolution 04-94 Securities Deposit Agreement West One Bank Resolution No.4-94 A RESOLUTION OF THE CITY OF MCCALL, IDAHO RELATING TO FINANCE, AUTHORIZING A SECURITIES DEPOSIT AND CASH MANAGEMENT AGREEMENT WITH WEST ONE BANK,IDAHO. WHEREAS,THE CITY OF MCCALL,IDAHO has from time to time funds that are not necessary to meet the immediate needs of the City and desires to prudently invest those funds. NOW,THEREFORE,be it resolved by the Mayor and Council of the City of McCall, Idaho as follows: Section 1: The Mayor and Council sitting in regular session do certify by this resolution that they hereby authorized the City of McCall to enter into that certain Asset Management Select Agency Agreement which is appended as Exhibit"A"to and made a part of this resolution as if set forth in its entirety herein. The purpose of said agreement is to assist the City in the management of all funds deposited. Section 2: That the City Treasurer, who is empowered by Section 50-1013, Idaho Code and this resolution,under such terms and conditions deemed proper and prudent: (1) From time to time deliver to and deposit with West One Bank, Idaho any cash assets of the City of McCall for the credit of such account under the name of the City of McCall;and (2) To withdraw, receive and receipt for, and to withdraw upon trust receipt on the responsibility and risk of this fund, and to sign orders and issue instructions for the handling, transfer, registration sale, substitution, exchange, delivery of any and all securities or other properties owned by the fund or the proceeds thereof and any time deposited to or for the credit of this agency account;and (3) To sign reconcilement and certify to the correctness of statements of account and approve and authorize adjustments therein with respect to the aforesaid account. Section 3: That the City Clerk of the City of McCall, Idaho be and hereby is authorized to certify to West One Bank, Idaho, a copy of this resolution and the names of the authorized officers or their delegates hereby authorized to act and West One Bank,Idaho is hereby authorized to rely upon any such certificate. Section 4: That the following persons,whose signatures appear on Exhibit"B"which is appended to and made a part of this resolution as if set forth in its entirety herein, are authorized in the capacity set opposite their respective names to transact investment transaction on behalf of the City. Dean A.Martens,Mayor William M.Killen,President of the City Council Arthur J. Schmidt-City Manager/Clerk James H.Henderson,City Treasurer Section 5: That Exhibit"C" Statement of Investment Policy and Guidelines, which is appended hereto and made part of this resolution as if set forth in its entirety herein,be and is hereby adopted. PASSED AND APPROVED this day of May 1994. ATTEST: Lo-p- Mayor City C k I • EXHIBIT "A" ASSET MANAGEMENT SELECT AGENCY AGREEMENT This document constitutes an Agency Agreement between City of McCall, Idaho, the Principal(s) and West One Bank, Idaho as the Agent. Definitions: In this agreement, the words "we," "our," and "us" mean the Agent. The words "you" and "your" mean the Principal. By signing this contract, the parties agree to the following: 1. An account is hereby established to hold all assets listed on the attached Schedule A and any other property now or hereafter deposited with us for such account, subject to the instructions herein set forth and such other instructions as may from time to time be given. 2. The cash, securities, and other property placed in this account are, unless otherwise herein specified, to be retained by us for safekeeping together with the receipt of any money and property due and payable from or on account of the property in this account. 3. We are authorized to exchange securities in temporary form for like securities in definitive form and to effect the exchange of certificates of stock on which the stated or par value of shares is revised by any corporation. 4. We shall not be required to enforce collection by legal means or otherwise of any item, but we shall receive the proceeds of such collections as may be effected by us or our Agent in the ordinary course of business. 5. With regard to investment, reinvestment or change in securities: We are authorized to mange the assets by investing in property which men of prudence would use for their own account, specifically including but not limited to stocks, corporate bonds, government securities, mutual funds, money market funds and proprietary mutual funds for which we or an affiliate may provide administrative, advisory, or other services and receive a fee. You will be advised on your statement of any investment changes made in this account. You, however, reserve the right to direct the purchase, sale or other disposition of any asset held in this account or to furnish us with written parameters setting forth the investment guidelines to be followed. 6. In the event we receive fractional shares paid as dividends by any corporation, we may round out such fraction to a full share or sell such fraction at our discretion without consulting you. 7. In the absence of specific instructions to place a purchase or sale order direct with a broker, we are authorized to place orders with or through our Investment Department. 8. When instructed to purchase securities or other property, or to disburse funds on - your behalf, we are authorized to charge this account for the requisite amount. We shall not, however, be obligated to make any such purchase or disbursement unless the money necessary therefor shall first have been made available to us. 9. We may, in our discretion, register any securities in the name of our nominee. In furtherance of such registration, we are authorized to execute all proxies for stockholders' meetings for any securities now or subsequently registered in such nominee name without additional authorization from you unless we, in our sole discretion, believe there is some matter to come before the meeting that should be brought to your attention. 10. You have the right to receive copies of broker's confirmations or a reasonable facsimile at an additional charge and within five (5) business days of directing us to execute certain securities transactions. This information is provided to you in periodic transaction statement. Therefore, you waive the right to receive copies of broker's confirmations or a reasonable facsimile within five (5) business days of directing us to execute the transaction(s). 11. Written instructions and directions with respect to this account, including the termination of such account or a portion thereof and withdrawal of assets, will be personally signed by you. 12. We may, in our discretion, accept instructions and directions from you or such authorized person or persons when given orally, by telephone, telegraph, cable, or otherwise, which we believe to be genuine. 13. Income is to be disbursed or accumulated, pursuant to any specific instructions we may receive from time to time from you. Any income not disbursed may be periodically added to principal and become a part of such principal available for reinvestment. 14. Principal funds are to be retained pending investment or other disposition as directed by you. 15. Statements of this account are to be rendered to you at least quarterly. 16. We shall receive for our services hereunder compensation according to our schedule of fees applying to agency accounts of this kind at the time such services are rendered. 17. You agree to indemnify us and hold us harmless from and against any and all liability (except for negligence or fraud on our part) resulting from the exercise by us any authority or power granted to us in this Agreement. This Agreement may be terminated at any time at the option of either you or us. In the event of your death or legally declared incompetency, all .account assets shall be delivered to your legally appointed representative. Dated this day of March, 1994. CITY 0 McCALL, IDAHO NBY: Q(.4.0 Dean A. Martens, Mayor ATTEST: BY: Arthur J. Schm' , City Manager/Clerk ACCEPTED: WEST ONE BANK, IDAHO, Agent BY: Exhibit"B" WEST ONE INSTITUTIONAL TRUST ACCOUNT SIGNATURE AUTHORIZATION ACCOUNT NUMBER I, Dean A. Martens, Mayor do hereby certify that I am the Mayor of the City of McCall, Idaho, and that the persons whose names and signatures appear below have been authorized to direct West One Bank, Idaho, as Agent for the City of McCall in the payment, distribution, investment and transfer of assets thereof,and in carrying out of administrative matters related thereto,as follows: Payments and Distributions Required Signatures: 2 of 4 . DEAN A.MARTENS As RAL WILLIAM M.KILLEN ARTHUR J. SCHMIDT JAMES H.HENDERSON Telephone instructions from above indiv.duals shall not be permitted. Asset Transfers and Investments Required Signatures: 2 of 4 . DEAN A.MARTENS s WILLIAM M.KILLEN ARTHUR J. SCHMIDT .#/./JAMES H.H.HENDERSON Telephone instructions from above individuals shall not be permitted. Administrative Required Signatures: 2 of 4 . DEAN A.MARTENS QQ.— /AO WILLIAM M. KILLEN i ARTHUR J. SCHMIDT JAMES H.HENDERSON - / Telephone instructions from above individuals shall not be permitted. IN WITNESS WHEREOF,I have hereto subscribed my name on thiso72' da ay 1994. A1"1'ESTIL A. VAIL Mayor Aar City C . , Exhibit"C" STATEMENT OF INVESTMENT POLICY AND GUIDELINES The following Investment Guidelines have been established by the City of McCall, Idaho to provide guidance and direction for the investment and reinvestment of principal and income of said designated funds. The City Treasurer, who is empowered by Section 50-1013,Idaho Code, to invest funds on behalf of the City,may amend, supplement or rescind this statement of policy and guidelines. In general, these investment guidelines: (a) identify and describe permissible types of investments; (b) provide diversification requirements to assure capital preservation; (c) establish maturity guidelines to ensure liquidity requirements (if any exist); (d) set forth prohibited uses of managed assets; and (e) establish reporting procedures for investment manager(s). Statutory Requirements All investments shall: A. Conform with Chapter 10, Section 50-1013, Idaho Code, and Article VIII Section 2 of the Constitution of the State of Idaho,related to investments of Public Funds. B. Be solely in the interest of the City of McCall. C. Be made with the care, skill,prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims. Investment Guidelines A. General 1. All securities shall be executed by reputable broker/dealers or banks, including any bank that is acting as custodian,and shall be on a best price and best execution basis. 2. Investments shall possess value and quality corroborated by accepted techniques and standards of fundamental,economic,financial and security analysis. B. Permitted investments shall be limited to the following: 1. General obligations of the US Government. 2. US Government Agency issues fully guaranteed by the US Government. 3. Commercial paper rated Al or PI at the time of purchase. 4. Fully collateralized Repurchase Agreements. 5. US Government Agency issues not fully guaranteed by the US Government. 6. Money Market Accounts usually and customarily used by the Investment Manager for short tern investment. 7. Accounts and Certificates of Deposit in banks where such deposits are fully insured by the Federal Deposit Insurance'Corporation. Diversification Guidelines To assure prudence and capital preservation, the following diversification guidelines shall apply to the stated account. A. Not more than 10% of the market value of the portfolio managed by each investment manager may consist of the securities of any one issuer. B. No individual investment in the securities of an issuer shall exceed 5% of the securities of that issuer. C. No part of any portfolio will consist of restricted securities. D. No securities will be purchased on margin accounts,nor will sales be made of borrowed securities that are to be repaid later(short sales). E. The diversification guidelines listed above shall not apply to the acquisition of United States Government Securities and/or securities issued by United States Government Agencies. F. Any variance in compliance with the diversification limits set forth above shall be promptly reported to the City Treasurer, Maturity Considerations To provide for both liquidity requirements (if they exist) and optimum performance results, the following maturity guidelines shall be applied to the City of McCall account: A. The average maturity of the holdings in the City of McCall account shall not exceed 1 year unless otherwise directed. B. Portfolio volatility and its relationship to the preservation of principal shall be controlled through the tactical allocation of fixed-income securities. C. The maximum maturity for any single issue shall not compromise the intended objectives of the portfolio. D. Liquidity requirements shall be met without the corpus of the account being unduly penalized. E. Any variance in compliance with the maturity considerations above shall be promptly reported to the City Treasurer. Prohibited Uses of Managed Assets The investment manager(s) shall not, without prior written consent of the City Treasurer, utilized managed assets to: (a)make loans, unless otherwise provided in these investment guidelines; (b)borrow money, pledge, or mortgage managed assets; (c) purchase securities on margin or make short sales; (d) purchase restricted securities; (e) purchase common or preferred shares of any corporation; nor(f)write, purchase or sell puts,calls,warrants,rights,or options. Reporting Procedures Investment manager having investment discretion shall provide at least a monthly report to the City Treasurer. These reports shall contain but not be limited to the following items: A. A review of City of McCall's investment performance and a comparison with the established indices. B. Details on the total return on principal and reinvested income for: (1) each month of the current fiscal year, (2) the accumulation for the current fiscal year, and (3) the appropriate historical record(e.g. 3, 5-year performance). C. Investment manager's outlook and objectives for the coming year. D. The Investment Manager's statement that all security transactions were carried out in accordance with this policy. Strategy Variance The investment manager(s) may recommend changes to this statement and/or specific portfolio strategies at any time when it is perceived that nay part of this statement or strategy to be at a major variance with overall economic and market conditions. Investment in Idaho On an"all this equal"basis, the Investment Managers shall consider investments in qualified institutions in the State of Idaho whenever possible and when consistent with this Statement of Investment Policy and Guidelines. D DATE: i10 -� 02,7 li 14-A-1124.4- Mayor AriEST: City Cle