Loading...
HomeMy WebLinkAboutResolution 4795-06-2017 Resolution No. 4795-06-2017 Texas CLs TRxas Cooperative Liquid Assets Securities System 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 Fort worth (the"Local Government's 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 Aaron Bovos (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 October 1, 2013 (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 Programand 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 800-707-6242 clientservices@texasclass.com Denver, CO 80202 F 855-848-9910 www.texasclass.com Page 3 Texas C I kQk JLJIWS Texas Cooperative Liquid Assets Securities System 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 that this olution shall take effect and be in full force and effect upon and after its ssage. Betsy Price natur of rd Pr est ayor ate Printed Name Mary J. Kayser Sig re of t Date Printed Name .S. 717 17th Street, Suite 1850 T 800-70 ItSFORM c n servicesytexasclass.corn Denver, CO 80202 F 855-848- 0 www.texasclass.com RAMMORNW City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/6/2017 - Resolution No. 4794-06-2017, 4795-06-2017 & 4796-06-2017 DATE: Tuesday, June 6, 2017 REFERENCE NO.: G-19016 LOG NAME: 13LGIP - LOCAL GOVERNMENT INVESTMENT POOL AUTHORIZATION SUBJECT: Authorize City of Fort Worth's Participation in Three Local Government Investment Pools as Possible Investment Options for the City's Investment Portfolio and Adopt Resolutions (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt attached resolutions authorizing the City's participation in three Local Government Investment Pools -Texas Cooperative Liquid Assets Securities System, Local Government Investment Cooperative and Texas Local Government Investment Pools - as investment options for the City's investment portfolio. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize participation in the identified Local Government Investment Pools (LGIPs)to provide the City of Fort Worth with additional investment options for its portfolio to allow more flexibility in responding to changing market conditions and take advantage of opportunities to earn additional yield while preserving principal safety and liquidity. At its April 20th meeting, the Investment Committee voted to recommend participation in these LGIPs as additional investment options after study, review and consultation with the City's investment consultant, Public Trust Advisors. Adoption of the attached resolutions will authorize the City to participate in Texas Cooperative Liquid Assets Securities System (Texas CLASS), Local Government Investment Cooperative (LOGIC) and Texas Local Government Investment Pools (TexPool Prime). An overview of each of the recommended pools appears below. Texas CLASS is a local government investment pool emphasizing safety, liquidity, convenience and competitive yield. Established in 1996 as an investment pool for its participants, pursuant to Section 2256.016 of the Public Funds Investment Act (PFIA), Chapter 2256 Texas Government Code, Texas CLASS invests only in securities allowed by PFIA. The pool is governed by a board of trustees elected annually by its participants. Texas CLASS is rated 'AAAm' by Standard and Poor's Ratings Services. TexasCLASS is a Stable net asset value Government Investment Pool. Public Trust Advisors, LLC, is the administrator for the Texas CLASS portfolio. LOGIC is a local government investment pool organized under the authority of the Interlocal Cooperation Act, Chapter 791, of the Texas Government Code and PFIA. The pool was created in April 1994 through a contract among its participating governmental units and is governed by a board of directors to provide for the joint investments of funds under its participants' control. LOGIC's policy seeks to invest pooled assets in a manner that will provide for safety of principal, liquidity in accordance with the operating requirements Logname: 13LGIP -LOCAL GOVERNMENT INVESTMENT POOL AUTHORIZATION Page 1 of 2 of the participants, and a competitive rate of return by utilizing economies of scale and professional investment expertise. LOGIC is rated 'AAAm' by Standard and Poor's Ratings Services. LOGIC is a stable net asset value Government Investment Pool. FirstSouthwest, a Division of Hilltop Securities and JPMIM (J.P. Morgan Investment Management Inc.) serve as co-administrators to LOGIC, with FirstSouthwest providing administrative, participant support and marketing services. TexPool Prime has been organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code and PFIA. The pool was created in December 2002. Seeks to preserve principal, liquidit and yield of capital investment consistent with the Texas Public Funds Investment Act. Invests conservatively in U.S. government securities, Repurchase Agreements, AAA-rated money market mutual funds, commercial paper, and certificates of deposit to provide a safe, efficient and liquid investment option. TexPool Prime is rated 'AAAm' by Standard and Poor's Ratings Services. TexPool Prime is managed by Federated and administered by the Texas Comptroller of Public Accounts. At 'AAAm,' all three recommended funds have the highest rating assigned to principal stability government investment pools. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance confirms that upon adoption of the recommendations contained herein, the City will utilize LGIP's and our money market account at JP Morgan Chase for the liquid investments within our short-term investment pool. LGIP's are expected to increase the City's net earnings by 10 to 25 basis points. FUND IDENTIFIERS IFID�): TO Fund Department Accoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department P ccoun Project Program ctivity Budget Reference # �mounl ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Oripinatinp Department Head: Aaron Bovos (8517) Additional Information Contact: John Samford (2318) Logname: 13LGIP -LOCAL GOVERNMENT INVESTMENT POOL AUTHORIZATION Page 2 of 2