HomeMy WebLinkAboutResolution 4794-06-2017 Resolution No. 4794-06-2017
Local Government Investment Cooperative (LOGIC) Resolution
RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A
PARTICIPATION AGREEMENT AND TRUST INSTRUMENT FOR
PARTICIPATION IN A PUBLIC FUNDS INVESTMENT POOL, DESIGNATING THE
BOARD OF TRUSTEES OF THE POOL AS AN AGENCY AND
INSTRUMENTALITY TO SUPERVISE THE POOL, APPROVING INVESTMENT
POLICIES OF THE POOL, APPOINTING AUTHORIZED REPRESENTATIVES AND
DESIGNATING INVESTMENT OFFICERS.
WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, as amended
(the "Interlocal Act"), permits any "local government" to contract with one or more other "local governments" to
perform "governmental functions and services," including investment of public funds (as such phrases are
defined in the Interlocal Act);
WHEREAS, the Interlocal Act authorizes the contracting parties to any interlocal agreement to contract
with agencies of the State of Texas,within the meaning of Chapter 771 of the Government Code,
WHEREAS, the Act permits the contracting parties to any interlocal agreement to create an
administrative agency to supervise the performance of such interlocal agreement and to employ personnel and
engage in other administrative activities and provide other administrative services necessary to execute the
terms of such interlocal agreement;
WHEREAS, the Public Funds Investment Act, Chapter 2256 of the Texas Government Code, as
amended (the"PFIA"), authorizes the entities described in Subsection (a)of the PFIA to invest their funds in an
eligible public funds investment pool, and the Local Government Investment Cooperative (LOGIC) intends to
become and remain an eligible public funds investment pool, under the terms and conditions set forth in PFIA;
WHEREAS, City of Fort Worth (the "Government
Entity") desires to enter into that certain Participation Agreement and Trust Instrument(the"Agreement"), a copy
of which is presented with this Resolution and is incorporated herein by reference, and to become a participant
in a public funds investment pool created under the PFIA, to be known as Local Government Investment
Cooperative(LOGIC) (the"Pool");
WHEREAS, the Government Entity is a Government Entity as defined in the Agreement;
WHEREAS, the Government Entity desires to cause administration of the Pool to be performed by a
board of trustees (the "Board"), which shall be an advisory board under the PFIA, an administrative agency
created under the Interlocal Act, and trustee of the funds in the Pool; and
WHEREAS, the Government Entity desires to designate the Board as its agency and instrumentality
with authority to supervise performance of the agreement, employ personnel and engage in other administrative
activities and provide other administrative services necessary to execute the terms of the Agreement;
WHEREAS, each capitalized term used in this Resolution and not otherwise defined has the same
meaning assigned to it in the Agreement;
NOW, THEREFORE, BE IT RESOLVED:
1. The Agreement is hereby approved and adopted and, upon execution thereof by an Authorized
Representative (defined below) and receipt of the Government Entity's application to join the Pool by the
Administrator, the Government Entity shall become a Participant in the Pool for the purpose of investing its
available funds in the Pool from time to time in accordance with the terms of the Agreement.
2. The Board is hereby designated as an agency and instrumentality of the Government Entity,
and the Board shall have the authority to supervise performance of the Agreement and the Pool, employ
personnel and engage in other administrative activities and provide other administrative services necessary to
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execute the terms of the Agreement. The Government Entity agrees that all moneys it transfers to the Pool shall
be held and managed in trust by the Board for the benefit of the Government Entity.
3. The investment policies of the Pool, as set forth in the document entitled Investment Policies, as
summarized in the Information Statement, and as may be amended from time to time by the Board, are hereby
adopted as investment policies of the Government Entity with respect to money invested in the Pool, and any
existing investment policies of the Government Entity in conflict therewith shall not apply to investments in the
Pool.
4. The following officers, officials or employees of the Government Entity are hereby designated as
'Authorized Representatives"within the meaning of the Agreement, with full power and authority to: execute the
Agreement, an application to join the Pool and any other documents required to become a Participant; deposit
money to and withdraw money from the Government Entity's Pool account from time to time in accordance with
the Agreement and the Information Statement; to agree to the terms for use of the website for online
transactions and take all other actions deemed necessary or appropriate for the investment of funds of the
Government Entity:
1.Name: Aaron Bovos Title:Chief Financial Officer
Signature: vi� Phone: 817-392-8517
Email:aaron.bovos@fortworthtexas.gov
i. Name: John Samford Title:Assistant Finance Director
Signature: Z l Phone: 817-392-2318
Email:john.samford@fortworthtexas.gov
3. Name: Jay Rutledge Title:Treasury Supervisor
Signature: Phone: 817-392-6030
Email:Jay.rutledge@fortworthtexas.gov
4. Name: Tide:
Signature: Phone:
Email:
In accordance with the Pool's procedures, an Authorized Representative shall promptly notify the Pool in
writing of any changes in who is serving as Authorized Representatives.
5. (Required) List the name of the Authorized Representative listed above that will be designated
as the Primary Contact and will receive all LOGIC correspondence including transaction confirmations
and monthly statements
(Name:Jay Rutledge
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6. {Optional) In addition, the following additional Participant representative (not listed above) is
designated as an Inquiry Only Representative authorized to obtain account information:
Name: Title:
Signature: Phone:
Email:
Applicant may designate other authorized representatives by written instrument signed by an existing
Applicant Authorized Representative or Applicant's chief executive officer.
7. (Required)Taxpayer Identification Number.
Applicant's taxpayer identification number is 75-6000528
8. (Required)Contact Information.
Applicant primary mailing address:
200 Texas Street, Fort Worth, Texas 76102
Applicant physical address(if different):
Applicant main phone number:
817-392-8500
Applicants main fax number:
817-392-5886
In addition to the foregoing Authorized Representatives, each Investment Officer of the Pool appointed by the
Board from time to time is hereby designated as an investment officer of the Government Entity and, as such,
shall have responsibility for investing the share of Pool assets representing funds of the Government Entity.
Each depository and custodian appointed by the Board from time to time are hereby designated as a depository
and custodian of the Government Entity for purposes of holding the share of Pool assets representing funds of
the Government Entity.
P APP th day of June 20 17
By: Attest:
Retsx Mayor Mar; J. Kayser, City Secretai3
Pri ame an Title Printed Name and Title
OFFICIAL SEAL l,•I QUIRED BELOW)
��• p APPROVED AS TO FORM AND LEGALITY
0:
* CITY ATT EY
""`cJ 3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 616/2017 - Resolution No. 4794-06-2017, 4795-OP-2017 &
4796-06-2017
DATE: Tuesday, .lune 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 (FIDs):
TO _
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
FROM
Fund Department ccount Project Program ctivity Budget Reference # moun
ID ID I Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: John Samford (2318)
Logname: 13LGIP - LOCAL GOVERNMENT INVESTMENT POOL AUTHORIZATION Page 2 of 2