HomeMy Public PortalAboutResolution 39-93 Securities Deposit Agreement West One Bank RESOLUTION NO. 39-93
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
to certify by this resolution that they hereby authorize the City
of McCall to enter into that certain Agency Agreement which is
appended 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 and all funds deposited.
Section 2 : That the Mayor and any designate of the Mayor be
authorized upon such terms and conditions as such person(s) shall
deem proper, with the concurrence of any other office or person:
( 1) From time to time deliver to and deposit with West One
Bank„ Idaho, any cash assests 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 responsiblity 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
statments of account and approve and authorize
adjustments therein with respect to the aforesaid
account.
Section 3 : that any elected council 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 in the
premises, and West One Bank, Idaho is hereby authorized to rely
upon any such additional certificates .
Section 4 : That the following persons are hereby authorized
in the capacity set opposite their respective names to transact
investment transactions on behalf of the fund.
Larry Smith-Mayor
Gary Van Komen-President of the City Council
Arthur J. Schmidt-City Administrator\City Clerk
James H. Henderson-City Treasurer
PASSED AND APPROVED this 9th day of September 1993 .
/ �
ATTEST Mayor
City C1-.= k
ASSET MANAGEMENT
SELECT AGENCY AGREEMENT
This document constitutes an Agency Agreement between the
City of McCall, Idaho, the Principal 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 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 by you.
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 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 toe
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 changes in
securities : We are authorized to manage the assets by
investing in property which men of prudence would use
for their own account, specifically including but not
limited to corporate bonds, government securities,
mutual funds, money market funds and proprietary mutual
funds for which we or an affiliate may provided
administrative, advisory, or other services and receive
a fee. Corporate Stocks and mutual funds composed of
stocks are expressly excluded from this authorization.
You will be advised on you 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 fourth 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 directly 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. If furtherance of such
registration, we are authorized to execute all proxies
for stockholder' s 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 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 statements . Therefore, you waive
the right to receive copies of broker' s confirmations
or a reasonable facsimile within (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.
•
l 1
13 . Income is to be disbursed or accumulated, pursuant to
any specific instructions that 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 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 of
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 .
Date this /e/`"day of - ` /� , 1993 .
CITY OF MCCALL, IDAHO
Principal
BY: .-
410
ATTEST•- Mayor
city Cler
ACCEPTED
WEST ONE BANK, IDAHO, Agent
•
BY:
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 of McCall will designate one council person; a City Council Member as
advisor and the City Treasurer to serve on the Finance Committee. •
The Finance Committee reserves the right at any time to amend, supplement or rescind this
statement of objectives.
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 12, Section 67-1210, Idaho State Code, related to investments for
public funds.
B. Be solely in the interest of 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 transactions 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 U.S. Government.
2. U.S. Government Agency issues fully guaranteed by the U.S. Government.
4. Commercial paper rated Al or P1 at the time of purchase.
•
5. Fully. collateralized Repurchase Agreements.
RGS.46
6. U.S. Government Agency issues not fully guaranteed by the U.S. Government.
7. Money Market Accounts usually and customarily used by the Investment Manager
for short-term cash investment.
8. Accounts and Certificates of Deposit in banks where such deposits are fully
insured by the Federal Deposit Insurance Corporation.
Diversification Guidelines
To assure prudency 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 except where specific donations
cause this limit to be exceeded.
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 United States Government Agencies.
F. Any variance in compliance with the diversification limits set forth above shall be
promptly reported. to the Finance Committee of the City of McCall.
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 where appropriate.
A. The average maturity of the holdings in the City of McCall account shall not exceed _
5 year unless otherwise directed.
B. Portfolio volatility and its relationship to 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 Finance Committee.
RGS.46
Prohibited Uses of Managed Assets
The investment manager(s) shall not, without prior written consent 'of the. Finance Committee
of the Board utilize 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) write, purchase,
or sell puts, calls, warrants, or options.
Reporting Procedures
Investment managers having investment discretion shall provide at least a semi-annual report to
the Finance Committee. 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 quarter 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 states 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 any part of this statement or strategy to be at a
major variance with overall economic and market conditions.
Investment in Idaho
On an "all things equal" basis, the Investment Managers should consider investments in qualified
financial institutions in the State of Idaho whenever possible and when consistent with this
Statement of Investment Policy and Guidelines.
RGS.46
Account Number(s)
WEST ONE INSTITUTIONAL TRUST
ACCOUNT SIGNATURE AUTHORIZATION
I, Larry Smith
, hereby certify that I am the Mayor
ofxtlie311-dratt ff1tt;cCity of McCall, Idaho,Nzhietxiafiiciz Avasxkliyc appoittszct tlottlexC
and the ity C ncil
AR 14 AMI XNIMVX t px)p§ 1 ? ikks authorized the persons whose
names and signatures appear on this card to direct West One as Agent
for the in the paymeni, i..:tstx;:bution, investment and
transfer of assets thereof, and in the carrying out of administrative ::ratters related thereto, as
follows:
Payments and Distributions
Required Signatures: 1 of
Name Signature
//ilag/ SMii6t
t
/4174/Of
N.1444 kr,
f � :vo 67esez✓
Telephone instructions from the above individuals shall
permitted. Written direction will follow all telephone
Asset Transfers and Investments
Required Signatures: 1 of
Name
A?.viawr J ��,o �-
��/v Assn/
Telephone instructions from the above individuals shall
permitted. Written direction will follow all telephone instructions.
instructions.
Signature
shall not X be
shall not
RGS.46
Administrative/Participant Recordkeeping
Required Signatures: 1 of
Name
At2/24.1 Eidt.
Ater f Sc4444/.0*
Telephone instructions from the above individuals shall
permitted. Written direction will follow all telephone instructions.
This card supersedes all prior certifications and shall remain in effect until West One is
notified to the contrary.
shall not K be
IN WITNESS WHEREOF, I have hereto subscribed my name on this /6,--day of
, 19 ).3
Attest:
1diKEIMIWX Mayor
XXaaiiiaSiffr City Clerk
RGS.46