HomeMy WebLinkAboutRES 1997-027 ��- � RESOLUTION NO. 97-27
� � A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE,TEXAS, APPROVING AND AUTHORIZING
EXECUTION OF AN INTERLOCAL AGREEMENT FOR
PARTICIPATION IN A PUBLIC FUNDS INVESTMENT
COOPERATIVE, LOCAL GOVERNMENT INVESTMENT
COOPERATIVE, (LOGIC), DESIGNATING THE BOARD OF
DIRECTORS OF THE COOPERATIVE AS AN AGENCY AND
THE INSTRUMENTALITY TO SUPERVISE THE
COOPERATIVE; APPROVING INVESTMENT POLICIES OF
THE COOPERATIVE; APPOINTING AUTHORIZED
REPRESENTATIVES AND DESIGNATING INVESTMENT
OFFICERS, AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas
Government Code, as amended (The Interlocal Act), permits any local government to
perform governmental functions and services; including investment of public funds (as
such phrases are defined in the Interlocal Act); and
�
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; and
WHEREAS, the Interlocal 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
services necessary to execute the terms of such Interlocal Agreement; and
WHEREAS, the Public Funds Investment Act (PFIA), Chapter 2256 of the Texas
Government Code, as amended, 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 (the Cooperative) intends to become and remain
an eligible public funds investment pool, under the terms and conditions set forth in
PFIA; and
WHEREAS, The City of Grapevine, Texas desires to enter into an Interlocal
Agreement, a copy of which is attached hereto and made a part hereof as "Exhibit
"A", and is incorporated herein by reference, and to become a participant in a public
��� funds investment pool created thereunder and under PFIA, to be known as Local
Government Investment Cooperative; and
�
WHEREAS, the City of Grapevine is a Government Entity as defined in the
agreement; and
„�_--�
WHEREAS, the City of Grapevine desires to cause administration of the
�. .� Cooperative to be performed by a board of directors (the Board), which shall be an
administration agency created under the Interlocal Act; and
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 BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1 . That all matters stated in the preamble to this resolution are
incorporated herein as if copied in their entirety.
Section 2. The Agreerrient, attached hereto and made a part hereof as Exhibit
"A”, is hereby approved and, upon execution thereof by the City Manager of the City
of Grapevine and receipt of the City of Grapevine, Texas' application to join the
Cooperative by the Administrator, the City of Grapevine, Texas, shall become a
'"�" Participant in the Cooperative for the purpose of investing its available funds therein
from time to time in accordance with its terms.
�
Section 3. The Board is hereby designated as an agency and instrumentality of
the City of Grapevine, and the Board shall have the authority to supervise performance
of the Agreement and the Cooperataive, employ personnel and engage in other
administrative activities and provide other administrative services necessary to execute
the terms of the Agreement.
Section 4. The investment policies of the Cooperative, 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 City of Grapevine, Texas, with respect to money invested
in the Cooperative and any existing investment policies of the City of Grapevine,
Texas, in conflict therewith shall not apply to investments in the Cooperative.
Section 5. The following officers, officials or employees of the City of
Grapevine, Texas, are hereby designated as Authorized Representatives within the
meaning of the Agreement, with full power and authority to: execute any other
documents required to become a participant; deposit money to and withdraw money
'�"`" from the City of Grapevine's Cooperative account from time to time in accordance
with the Agreement and the Information Statement; and take all other actions deemed
;� necessary or appropriate for the investment of funds of the City of Grapevine, Texas:
RES. NO. 97-27 2
„��..,M
�,._� Roger Nelson Interim City Manager
�
(Signat )
William A. Gaither Dir ctor of Administrative Services
� c
G�vG����
(Signature)
Fred L. Werner Finance Manager
, `
Signature)
In accordance with Cooperative procedures, an Authorized Representative shall
promptly notify the Cooperative in writing of any changes in who is serving as
'�'"� Authorized Representatives.
� Section 6. In addition to the foregoing Authorized Representatives, each
Investment Officer of the Cooperative appointed by the Board from time to time is
hereby designated as an investment officer of the City of Grapevine, Texas, and, as
such, shall have responsibility for investing the share of Cooperative assets
representing funds of the City of Grapevine, Texas. Each depository and custodian
appointed by the Board from time to time are hereby designated as a depository and
custodian of the City of Grapevine, Texas, for the purposes of holding the share of
Cooperative assets representing funds of the City of Grapevine, Texas.
Section 7. That this resolution and its authorization supersede all prior
resolutions and shall continue in full force and effect until amended or revoked by the
City of Grapevine, Texas.
Section 8. That this resolution shall become effective from and after the date
of it passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
''�'� GRAPEVINE, TEXAS on this the 6th day of Ma� , 1997.
�
RES. NO. 9�-2� 3
j APPROVED:
� � ��:��
�
William D. Tate
Mayor
ATTEST:
Lin a uff
City Secretary
APPROVED AS TO FORM:
�* _ _ _ _...f. ,� �
� � ,�
, ,: ;,€.� ..:-, .-� , ;
;
_�, , r
<._. � ,= .,-� . _
�""" John F. Boyle, Jr. °
City Attorney
�,�
RES. NO. 97-27 4
Additional Party Agreement
The Government Entity of the State of Texas named below, acting by and
"'�" through the undersigned Authorized representative, hereby agrees to become a party
to that certain Interlocal Agreement to which this page is attached, and thereby
become a Participant in the Local Agreement Investment Cooperative (LOGIC), subject
to all of the terms and provisions of such Agreement. The undersigned hereby
represents that it is a Government Entity as defined in such Agreement.
Executed this 6th day of May , 19 97
City of Granevine. Texas
Name of Government Entity
By.
Autho ed Representative
_Roger Nelson _�___
� Printed Name
�
Interim City Manager
Title
ACCEPTED:
Loca� Government Investment Cooperative
BY� r� � `��lti�
L GIC Administrator
Patrick S. Shinkle
Printed Name
�
Vice President / Administrator
Title
�
RES. NO. 9�-2� 5
EXNI8IT� TO _�—'- y1��'
Page .�/ _. of _._`t____
Interlocal Agreement
�
THIS INTERLOCAL AGREEMENT (toyether with a.ny ameadments and supplemeats� referred
to as this 'AYraemeut')dated as of April 4, 1994 is made and entered into by and amonY each of those yoverament
eatities initially ezocuting this Agreement aad any other government encity chac is eligible and becomes a party
� hereto (collecdvely, the 'Participants').
WF�REAS, the Interlocal Cooperation Act, Chapter 791 of the Tezas Governmeat Code, as
amended (che 'Incerlocal Act'), permits any 'local yoverament' to contract with one or more other 'local
governmenca' to perform 'governmeutal functions and services,' including invescment of public funds (as such
phrases are defined in the Act);
WHEREAS, the Interlocal Act suthorizes the contracting parties to aay incerlocal agreemeat to
contract with agencies of the State of Tezas, within the meaaing of Chapter 771 of tbe Govemmeut Code;
WHEREAS, the Iaterlocal Act permits the contssctiny pxrties to aay interlocal aYraemeat to create
aa adminisirs�tive aYeacy to supervise the performance of such interlocal agre�rment and to employ personnel and
wgaPe ia othu administz�ative activities and provide other adminisirativo aervices nacessary to ezocute the terms
of such incerlocal aYrcemeat; •
WHEREAS, the Public Funds Investment Act� Chaptcr 2256 of the Tezas Governmeat Code� as
ameuded (the 'PFIA') authorizes the encities described in Subsection (a) of the PFIA to invest their funds in aa
eligible public funds investment pool;
WHEREAS, each of the Participants qualifies �s a government entiry under this Agreemeut;
�„.�, WHEREAS, the Pzrticipants desire to establish and maintain a public funds investmeat pool for
the purpose of poolinY their locsil funds for joint invesiment in accordance with the Incerlocal Act sind PFIA and
the G:rms ber�of and providing assisiance to each other on investment alceruatives and on other issues of concern
�„„ to the Participants;
WF-IEREAS, the Participants desire that the public funds investmeot pool be entitled I.ocal
Government Investment Cooperacive (the 'Coopecative')and the Cooperative be managed and operaced by a board
of directors, which shall be an administrative agency created under the Interlocal Act;
VVF�REAS, each of the Participants has duly taken all official action necessary and appropriate
to become a party to this Agreement, including the adoption of a resolution;
NOW, THERFFORE, ia consideration of the premises and the mutual covenants and agraemeuts
coutained herein, the Participan�s mutually agree as follows:
ARTI CI.E I
Delinidons and Rules of Cocutruction
Section 1.01. D�nitioas. Ezcept as otherwise provided in this Agreemeat, the capitalized terms
used berein shall have the following meanings unless the concezt otherwise requires:
Account - any account established by a Participant.
�
�
-1-
Interlocal Agreemeot
�X�11BIT� T � �lT�
C
Page _____— of ._L---
�,.�,
Additional Party Agreement - a documeat substantially ia che form auachod hereto u aa
Appead'u which, w�ea atsached to a copy of chis Agreemeat and ezecuted by an Authoriud Representative of a
Governaseut Encity, constitutes a vallid and binding counterpart of this Agrcement and results in ehe Govecnment
Entity becoming a party to this Agreement�
�:�
Administrator-The Trusi Company of Tezas, or n,ny other person, firm or oryanization approved
by tho Board and under coneract ta provide administraeive assistance in connection with the msaagemeat and
operasioa of the Cooperaiive.
Adviser-'Ibo reg-isiered investmeat advisor or advisers selected by or at the dirxtion of the Board
to provide advice reYardinY investmeat of Cooperative asseLs pursuant to chis AYreement and subject to applicable
law.
Authorized Iavestrnents - those invesimeats which are authorized from [ime co time to be
purchs�.sed, sold and invesied in under PFIA or other applicable law and further defined ia the Investmeat Policies.
Authorized Representative - aa individual authorized eo ezecute documeats aad taYe other
nocessary actioas, pursuant to thia Agroemeat� on behalf of a Govcrnmeut Entity or othcr person� firm or
orYani�tion, as evideaced by a duly adopted resolution or bylaw of the goveraing body'of such Governmeat Entity
or othu person. firm or organization, a certified copy of which is on file with the Administrator. In the c,ase of
a Governmeut Entity that is a combinacion of political subdivisions under the Act, the Auehoriud Represe.acatives
of any administrative ayeacy appoinced by such combinatio❑ of political subdivisioas shall be deemed to be
Author'u,ed Representatives for such Covernment Entities.
Baard - the governing body of tbe Cooperative, known �s The Board of Directors of Local
,,.� Goverament Investmeut Coopecative.
Bylaws - with respect to the initial Participants, the proposod bylaws of the Board prrseuttd to
�i1 them, and aRer crostion of the Boud, its bylaws, s�s the szme may be ameuded hom time co time, a�bject to tha
requiremeats of this Agreement.
Cooperative - the public funds investment cooperative creaeed pursuant to this Agreemeat.
Custodian - ehe person selected by or at the direction of the Board to have custody of all money.
invesimeat8 and other �ssets of the Cooperative pursuant to this Agreement and subject to applicable law.
General hianager -Souehwest Securities Group, Inc., or any other person, firm or orYanization
which has contracted with the Baard to provide general management services to the $oard,
Goverrunent Entity - a local government of the State of"I'ezas, a�s defined ia che Interlocal Act
or a siate agency, as defined in Section 771.002 of the Govern.ment Code, inc(uding but not limited to aa
�����d �ih' o� tou'n, i county, a public school district, a district or suthority creaeed under art. III,
Section 52(b)(1) or(2) of the Tezas Constitution, or art. XVI, Section 59 of the Tezas Consticution, an iascitutioc
of higher educatioa as defined by Sectio❑ 61.003 of the Education Code, a hospical district, or a fresb waeer supply
disirict.
Inforrnation Statement - the information staeement or any other documeat distributed to
Participants and potential Puticipaats to provide them with a descriptio❑ of the management and operation of the
�
Cooperative, as the same may be ameoded from time to time, subject to the cequirements of this Agreemeat.
W.�
-2-
Ineorlocal AYreemeot
EXHIBlT� TO �0 4 "l��-�'
Pa9e --= of =
Interlocal Ad - the Interlocal Coopention Act� Chaptcr 791 of the Tezas Governmeat Code, as
�.,�
the same may be ameudod from time to time.
Investment Officer - one or more officers or empioyees of the Board designated as invesiment
officers by the Board.
�
Investment Policies • the writtea Investment Policies adopted and approved by the Board
governinY invesimeut and managemeat of Cooperative s�ssets of differeat Portfolios, as the same may be amended
from time to time, subject to the requirements of this Agreement.
"Marketing Representative" - Broker Transacdon Services, Inc. or any other person� firm or
orgaaization authoc-ized by the Board to promote the Cooperative.
Participants - the Governmeat Encicies thai are the inicial parties to thia Agrxmeat and the
Goveznmeut Entities which subsequently become parties to this Agreemeat.
PFIA - the Public Funds Investmeut Act, Chapter 2256, Tezas Goverameni Code, u the same
may be ameaded from time to time.
Poctfolio - a portfolio of assets in the Cooperative which are held separat� from other asseis of
the Cooperative aad which are invested with s defined iavestment objecdve which may be difFerent from other
Portfolios in the Cooperative, and in which a Participaat may elect to invest its funds.
State - the Stace of Tezas.
Units - equal proportionate units of undivided beneficial intemsi in the assets of the Cooperative
� or of any Portfolio of t6e Cooperaeive from time to time, including fractions of units as well as whole units.
Section 1.02 General Rules of Construction.
�
(a) Whenever in this Agreement the contezt requires: (1)a reference to the singular number
shall include the plural and vice versa; and (Z)a word denoting gender shall be coastrued
to include the masculine, feminine, and neucer.
(b) 'Ibe tieles given to any arUcle or secdon of this Agreement are for convenience oaly and
u�e not inteaded to modify the article or section.
ART'ICLE II
Ccea�oa of the Cooperative; Purpose and Objertive
Section 2.01. Creation of the Board.
(a) 'Ibe initial Participants hereby agree to jointly invesi their funds in a public funds
investment pool, to be 3cnown a�s Local Governmeut Investment Cooperative (the
'Cooperative') and to create and establish a board of directors of the Cooperative (the
'Board'), as an administrative agency pursuant to the Interlocal Act, to supervise the
Cooperative.
�
-3-
Interloc.al Agroemeot
�XH181T �T TO��' `��"`'��
Page � of ;�._
(b) T'he Participants deleYate to the Cooperative throuYh its$oard, the authority to hold leYai
,��,-�.
ticle to aad manaye all moaey, investme�ts and other usets tra,asferred to or acquirai by
the Cooperative pursuant to the Interlocal Act and this Ayrxment.
(c) As an ageacy aad iastrumentality of the Participants, the Board shall have the authority
+� to employ personnel, eagage in othcr adminiatrativo sctivities aad provide other
administradve servic�s necessary ta accocnplish the purpose of this AYreemeat.
Section 2.02. Purpose and Objective,
(s) The fusi purpose of the Cooperacive is ta provide Governmeat Encities with a variety of
investment vehicles to best suit their investmeut aceds, with each Portfolio tailored to
meet a specific investment necd.
(b) The secand pwpose of the Cooperative is co provide Governme�t Entities with a forum
for discussion of, aad to provide education concerninY, invaUneuts and other issues of
concecn in public finance. In a11 cases� however. the Cooperative will have the followiny
invcstmcut objeccivcs in order of priority: safety of principal; liquidity in accordance
with the operatinY requiremeats of the Participants; and the�hiyhesi rate of return.
(c) In order to accomplish the Cooperative's objxtive, each Puticipant agrees thst the
money transferred to a Portfolio wichin the Cooperative will be commingled wi[h other
mooey transferred to the Porcfolio by other Participants for the purpose of malcing
Authoc-ized Invescmeu�s, subject to the terms of this Agreement, the Investment Policies
and applicable law, thereby taking advaatage of investment oppominicies and cost beaefits
available to larger invescors.
�a�
AR"I'ICLE III
Cooper�ative Administration
Sectioa 3.01. The Board and the Bylaws
(a) The business and aFfairs of the Cooperative shall be managed by the Board as governing
body of the Cooperative.
(b) The Board is authorizcd to adopt Bylaws which shall set forth, amonp ocher thinQs, tbe
initial Board members, the procedur�s governing thc seleccio❑ of the members of tho
Board, the procedure for holding meetings, the election of officcrs, and other matters
necessary or desirable for Yovernance by the Baard, and the riYht of the Board, the
General hlanager, and other coaniltants to be indemnified for damagcs arising from their
actions in connection with the Cooperative. By ezecutinY this Agreemeot, the Participant
consents to the Bylaws. By maint.aining funds in the Cooperative after any ameadment
to t6e Bylaurs becomes effeccive, the Participant coaseots to ehe Bylaws, as amended.
The Board h�s the right to amend any eerm or provision of the Bylaws, provided that
notice is sent to each Participant at least 30 days prior to the effective daee of any change
which, in the opinion of the Board, is a material change to the Bylaws.
�
�r
-d-
Interlocal AYtooment
������r� ro ��r1-��
Pa�e s of �_
Section 3.02. Powess and Duties of the Board.
(a) Subjxt to applicable law and the terms of this AYreemeat, the Board shall have full aad
complete power to take all actions, do all thinYs and ezecute all instruments as it deems
necessary or desirable in order to carry out,promote or advance the invesimeat objactive�
interesu and purposes of the Cooperative to the same eztent as if the Board was the sole
and absolute owner of the Cooperacive.
(b) 'Ibe Board shall aciopt and maintain Investmeat Policies, consisteut wich the Yeaeral
objective of the Cooperadve,which shall provide more detailed guidelines for investmeut
and management of Cooperative assets. By ezecuting this Agreement, che initial
Participants consent to the proposed Investment Policies, and the subsequent Participants
consent to the Iavestment Policies theu in effac� By maintaining funds in the
Cooperative after any amendment to the Investmeat Policies becomes effective� the
Participant has consented to the Investment Policies, as amended. The Board shall,
subject to the terms of this Agreemeat, have[he authority co ameud any term or provision
of the Investment Policies, provided [hat notice is sent to each Participant at least 30 days
prior to the effective date of any change which, in the opinion of the Board, will have
a material effect on euch Participant's investmeat in the Cooperative.
(c) The Baard shall adopt and maintain Operating Procedures, which shall provide more
detailed information on the procedures for depositing and wichdrawing funds from the
Cooperative. By ezecuting this Agreement, the initial Participants consent to the
proposed Operating Procedures, and che subsequent Participancs conseat to the Operating
Procedures then in effec[. By maintai.ning funds in the Cooperative after any ameadment
to the Operating Procedures becomes effective, the Participant has consented to the
� � Operating Procedures, as amended. The Board shall, subject to the terms of this
Agreement, have the authority to amend any term or provision of the Operating
Procedures provided that notice is seut to each Participant at least 30 days prior co the
effeccive date of any change which, in the opinioa of the Board, will have a material
effect o❑ such Participant's investment in the Cooperative.
(d) 'I'he Board shall designate one or more Investment Officers for the Cooperative who shall
be responsible for tbe investment of Cooperative assets, providc� that no person who is
an office� or employee of a regional planning commissioo, council of governments or
similar regional planning agency creaced pursuant to Chapter 391 of the Government
Entity Code of the State shall be eligible to serve as an Investmeat Officer.
(e) The Board shall prepare, or direct che preparation of an Information Seatement that
describes how the Cooperative will operate in accordance with thc terms of ttus
Agreemeat and the Investment Policies. Subject to the tcrms of this Agreement and the
Invescment Policies, the Information Statement may be ameaded or supplemented, notice
of which will be provided to Participants in accordance with the disclosure requirements
of PFIA.
(� 'lbe Board shall,subject to the limitations established in the Invescment Policies,have full
and complete power and authority co appoint a yeneral manager and any other service
providers deemed nece,ssary or helpful in the operation of tbe Cooperacive.
rr�w
-S-
Iaterlocal AYreement
EXH(BIT� TO �' `��-��
Page � of `
(g) The Board shall provide�through peer review,seminars, compucer mail systems, or other
means, iaformacion and e8ucational opportunities to Participants on investing aad on other
issues in the area of public finance.
(h) The Board shall have full and complete power to use, or direct the use of, Cooperative
'� assets for che followinY purposes: (1) incur and pay sny ezpeases which, in its opinioa.
are necessary or incidental to or proper for carryinY out any of the pwposes of thie
Agreemeat; (2) reimburse others for the payment thereof; (3) pay appropriate
compeusation or fees to pecsons with whom the Cooperative has contracted or traas,acted
business; and (4)charge a Pn.rticipant's Account for any special fees or ezpeases related
specifically to transactions in such Account.
(i) Tbe Board shall have full power to compromise� arbitrate, or otherwise adjust cla.ims in
favor of or against the Cooperative.
(j) The Board shall cause finaacial statements to be prepared and maintained for the
Cooperative aad for such staeements to be sudited annually by an indepeadeat certified
public accounting firm.
(Y) The Board may appoint a General Manager to perfocm managerial services for the
Cooperative, provided that the Baard shall continue to oversee the operaLion and
management of the Cooperative and shall have the authority to direct the General
Maaager to take or not take specific actio❑ on behalf of the Cooperative.
(1) The enumeradon of any specific power or suthority herein shall not be construed as
limiting the general power aad suthority of[he Board over the Coopera[ive.
�Y�
Section 3.03. Liability.
(a) Neither the Board, the Investment Officers, nor any officers, employees or board
members of any of the forgoing shall be held liable for any action or omission to act on
behalf of the Cooperative or the Participants unless caused by such person's willful
misconduct. The Cooperative shall indemnify and hold harmless (either dire�tly or
through inc�,r-��ce) any person referred to in this Section, to the ezcent permitted by law.
for any and all litigation, claims or other proceedings, includinY but not limited to
reasonable att.omey fees, costs,judgments, seUlement payments and penalties arising out
of the management and operation of the Cooperacive�unless the litiyation,claim or other
proceeding resulted from the willful misconduct of such person.
(b) Neither the Geaeral Manager. the Marketing Represeatativo, the Adminisirator� tbe
Adviser, the Subadviser, the C�stodian, nor theit affiliates, officers, employees or board
members sball be held liable for any action or omission to act o❑ behalf of the
Cooperative or the Participants unless such person failed to meet the standard of care
required under its agreement relating to the Cooperative or uted wieh willful miscoaduct.
The Cooperative shall indemnify and hold harmless (either disaccly or through i�c�*ance)
any person referred to in this Section, to the ezteat permiued by law, for Any s�nd all
litigatioo, claims or other proceedings, including but ❑ot limited to reasonable atiorney
fees, costs,judgments, settlement payments and penalties arising out of the management
and operation of the Cooperative, unless the litigacion, claim, or other proceeding is
adjudicaced to have resulted from such person's failuce to meet the standard of eare
required under its agreement relating to the Cooperative or its willful misconduct.
�+
-6-
Interlocal AYreement
=' ���� --,�— of `�
(c) Tbe iademnification provisions are described in more detail in the Bylaws.
�x�ncr_.E rv
Pa,-tiapabon in ct�e cooperaboe
�.�_
Section 4.01. Eligibility. In order for a Govemmeat Encity co bacome s Psuticipaat and traasfet
money into the Cooperative, each of[he following conditions must be satisfiod:
(a) 'Ibe Govemmeut Encity must adopt a resolution(1)authoririny it to bacome a Participant
and approving this Agreement. (2) establishing the Board as an ageacy aad
instrumentality of the Participant to supervise the Cooperacive, (3) aPProvinY the
iavestment policies of the Cooperacive(as ameaded from time to time by the Board) and
direcci.ng that any confliccing local investment policics shall not apply to Cooperativo
investmeats of the Participant. (4) desiQnatiny Authorized Represeatatives of the
ParticiPant, (� designating the Iavestment Officerr appointed from time to time by tho
Board as the Participant's investment officers who shall be respoasibla for inv�Y tho
share of Cooperative assets representing local funds of the Participaat, and (6)
designating che depository and custodian appointed from time to time by the Board as the
Government Entity's depository and custodian for purposes of holding the sharie of
Cooperacive assets representing funds of the Govecnment Entity; and
(b) 'Ibe Govetnmeat Encity must become a party to this Ayreemeat by ezocutinY aa
Additional Party Agreement and delivering the same to the Cooperative, toyether wi[h
a certified copy of the resolution referred to in subsection (a) of this Secdon� an
application in form and substa.nce satisfactory to the Board, and such other information
�..:�
as may be re�uired by the Board.
(c) No eatity ezcept a Government Entity may be a Participant. The Board shall have sole
discretio❑ to determine whether a Government Entity is eligible under Tezas law to be
a Participant and to designace categories of Government Entities eligible eo be Participauts
in any Portfolio of the Cooperative.
Section 4.OZ. Participant Accounts.
(a) While available local funds of Participants may be comminYled for purposes of conzmon
invesiment and operacional efficiency� one or more separate Accounts for each Participaat
in each Portfolio in the Cooperative designated by the Participant will be established ia
accordance with the Participant's applicstion to join the Cooperative aad maintained by
the Cooperative.
(b) Each Participant shall own an undivided beneficia] interesi in the assecs in the Portfolios
in which it invests, calculated as described in the Investment Policies.
(c) The Participant agrees that all Cooperative fees s6all be directly and automa2ically
�s.sessed and charged against che Participant's Account. The basic services fae shall be
calculaced �s a reduction in the daily income earned s►nd only the net income shal! be
creditad to the Participant's Account. Faes for specis] servicea shall be chargad to each
Participant's Account as they are incurred or performed. Use of Cooperacive assets for
fees shall be made from current revenues available co the Participant.
�
-7-
Interlocs�l AY.roemen2
EXHIBIT_�. TO � `�?'�7
Pa3e �_. of �
Section 4.03. Reports. 'Ibe Cooperative shall submit a wriuea report s least onca per moath
to esch Participaa� Such report will indicate: (1)the balance ia each Accouat of a Participaat as of the datt of such
��' report, (2) yield iaformation, (3) all accouat activ�ty siace the provious report� aad (4) other information required
by PFIA.
Sec�on 4.04. Terminafion.
(a) A Participant may wichdraw all funds from an Account in accordaace wich the Invesimeut
Policies aad OperatinY Procedures. A Participant may cease to be a Participaat uader
this AYrexmeat, with o�without cause� by providiny writiea notice to the Cooperative at
least 10 days prior to such termination.
(b) The Baard may terminate a Participant's participation in this Agr�oemeat upon a!least 30
days notice if Tezas law changes so that such Participant is no IonYer entided to join in
an eligible public funds investment pool under PFIA, the Incerlocal Act, or other
applicable law.
(c) Upon the vote of a majority of its full membership, the Board may order the terminatioa
of this AYreemeat by directing that all outstanding operating ezpenses of the Cooperative
be paid and remaining assets of the Cooperative be distributed to Participants in
accordance with their respective pro rata interests.
ARTICLE V
Coopei-utive Assets
�,.,.�, Section 5.01. Cooperative Investsnents. Cooperative assets shal]be i.uvested and reinvested by
tho Cooperativo only in Author�ized Investments in accordance with the Investment Policies.
��°' Section 5.02. CtLstodp. All money, investments and assets of the Cooperative s6all be held in
the possession of the Cbstodian.
AR"I'IC'LE VI
Nfiscellaneous
Sedion 6.01. Severability.
(a) If any provision of this Agroement shall be held or deemed to be illegal, inoperative or
unenforceable, the same shall not affect any other provisioas contained herein or reuder
the same invalid, inoperative or unenforceable to any ezteat whatsoevct.
(b) Any participation in this Agreement or transfer of assets to the Cooperative that is not
qualified fo�any ma.son shall not terminate this Agreemeot or the participation of other
Participants or otherwise adversely affect the Cooperative.
Section 6.02. Limitation of Rights. This Agreement does not create any right, title oc intetesi
for any person other than che Participanis s�nd any person who has A contract to provide services to the Cooperative�
a� ��Y�or��implied from this Agreemeat is intended or shall be construed to give any other person any
legal or oquitable right, remedy or claim under this Agreement.
�
-8-
Interloc.al Agroement
�xN���r�. ro ���� �r 1-� �
a:��e _._L� of �
Sedion 6.03. Exerution of Counterparts. 'I�his AYreement may be ezxuted in sev�ra� �
counterparts, including by Addidoaal Party Agreement� each of which shall be sa original and a11 of which shall
�,,, coastitute one and the same instrumeat.
Se�ction 6.04. Applicable Law. This Agrxment shall be Yoverned by aad construod in
accordance with the laws of the Stste. �
Secfion 6.05. Teim. This Agreemeat shall have an iniaal term beYinniay with the effactive dace
sei forth below and euding March 31, 1995 and shall be sucomatically reaewed for one y�ar on such date aad �ach
s�naiversary of sach date� ezcept with tespect to any Government Entity that may have terminaced itself as a
Participant or as othcrwise provided in Section 4.05.
Sec�iou 6.06. Notices. Any notices or other informaiioa roquired or permittad to be Yivea
hereuader ahall be aea� (a) to the Cooperative as set forth ia tbe Information Statemeat, and (b) to s Participant
as set forth in its application to become a Participaat or as otherwise provided by writ2ea notice to the
Administrator.
Section 6.07. Entire Ayr�eezneat;Amendments. This Agrr.ement represe.ats tbe eatire aYr�oemeat
and understanding of the Participaats. This Agreement may be a.mended with the approval of a majority of tbe fiill
membership of the Board� provided that notice of any such amendment is sent to all Participants at leasi 60 days
prior to the effective date thereof.
IN WITNESS WHEREOF the initial parties hereto have caused this Agreemeat to be ezecuted.
Fort Bend Countv
Name of Goveinmeat Encity
��
By: _/s/ Kathv Hvnson
�„ Authorized Representztive
_Kathv Hvnson, Councy Treasurer
Prineed Name and Tide
Citv of Wichita Falls, Tezas
Name of Government Entiry
By: /s/ Jim Berrina
Authorized Representative
Jim Berana, Cic.y Manaeer
Printed Name and Ticle
�r
-9-
Interlocal A�reement