1998R01- INTERLOCAL INVESTMENT AGREEMENT
RESOLUTION NO.
frY-~- /
A RESOLUTION
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS, APPROVING AND AUTHORIZING EXECUTION OF AN
INTERLOCAL INVES'IMENT AGREEMENT FOR PARTICIPATION
IN THE MBIA MUNICIPAL INVESTORS SERVICE
CORPORATION DESIGNATING THE POOL AS AN AGENCY AND
INSTRtJMEm'ALITY, APPROVING INVES'lMENT POLICIES OF
THE POOL, APPOINTING AUTHORIZED REPRESENTATIVES,
AND DESIGNATING INVES'lMENT OFFICERS.
WHEREAS, the Public Funds Investment Act, Texas
Government Code, Section 2256.001 et seq. (the "Act"),
requires t.he governing body of each local government in
this State to adopt investment policies in accordance with
the tenns of the Act; and
WHEREAS, pursuant to the requirement.s of the Act, the
City Council (the "Governing Body") of the City of Schertz
(the "Local Government") 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 Kerry R. Sweatt to act as the
investment officer of the Local Government (the "Investment
Officer") 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 March 3, 1996
(the "Information Statement"), of Texas Cooperative Liquid
Assets Securities System, an investment pool administered
by MBIA Municipal Investors Service Corporation (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 is to be created through a trust agreement, dated
as of January 1, 1996 (the "Trust Agreement"), which
provides the tenns on which the Program will operate and
the rights of the participants in the Program and sets
forth the responsibilities of MEIA Municipal Investors
Service Corporation as the administrator of the Program
(the "Administrator") , and of BankOne, Texas, N. A. as
custodian (the "Custodian");
NCW THEREFORE BE IT RESOLVED BY THE CITY COlJNCIL OJ' TKI
CITY OF SCHERTZ, TEKAS:
1. THAT, the form, tenns and provlslons 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 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,
2. THAT, the investment program establ ished 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 Goverrunent and the
Program; and be it further resolved,
3. 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,
. .
4. 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 Resol uti on 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,
5. 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 perfonn
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 resolved,
6, THAT, this Resolution shall take effect and be in
full force and effect upon and after its passage.
PASSED, APPROVED AND lUXlPTED this the 0?4fL day of
~~~~ ' 1998.
Texas
ATTEST:
~~
city Secretary, City of Schert,
(SEAL OF CITY)