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HomeMy WebLinkAbout023864 RES - 12/14/1999A RESOLUTION AMENDING THE CITY INVESTMENT POLICY TO ALLOW CONTRACTS WITH INVESTMENT MANAGEMENT FIRMS TO PROVIDE FOR THE INVESTMENT AND MANAGEMENT OF PUBLIC FUNDS UPON CITY COUNCIL APPROVAL AND ADOPTING THE CITY INVESTMENT POLICY AS AMENDED. WHEREAS, the City of Corpus Christi Investment Policy was adopted in Resolution No. 022390 on October 24, 1995, amended in Resolution No. 022980 on July 8, 1997; amended in Resolution No. 023133 on November 18, 1997; and amended in Resolution No. 023472 on October 27, 1998; WHEREAS, the Texas Legislature recently adopted an amendment to the Public Funds Investment Act to allow a governing body to approve contracting with an investment management firm for the management of its funds; WHEREAS, City of Corpus Christi Investment Committee reviewed the proposed amendments to the Investment Policy identified in the attached summary and recommends that the City Council amend the City Investment Policy; WHEREAS, as provided in Section II. C. of the Investment Policy, the City Council must review the Investment Policy on or before December 31 of each year. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Investment Policy is hereby amended and adopted. A summary of the amendments is attached and incorporated as Exhibit I. A copy of the amended City Investment Policy is attached and incorporated as Exhibit II. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Samuel L. N(al, Jr., Mayor The City of Corpus Christi Approved this the I(o day of De Cs ..-. 6 , 1999. James R. Bray, Jr., City Attorney By: rt , i.Csc Assistant City Attorney H:V,EG-DIR\VERONICA\LISA\ RES\RES.010 023864 CORP%CHRISTI, EXAS�.,�� %� V ( DAY OF �,-Qr , 19 ` / The above resolution was passed by the following vote: Samuel L. Neal, Jr. Javier D. Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales Rex A. Kinnison Betty Jean Longoria John Longoria Mark Scott H:\LEC-DIR\VERONICAVISA\RES\RES.0I0 023864 trairsSor City of Corpus Christi • CITY OF CORPUS CHRISTI INVESTMENT POLICY Resolution Number 023864 Adopted December 14, 1999 TABLE OF CONTENTS I. INTRODUCTION 3 II. PURPOSE 3 III. DEFINITIONS 4 IV. INVESTMENT OBJECTIVES 5 V. AUTHORIZED INVESTMENTS AND MAXIMUM TERM 7 VI. INVESTMENT MIX AND STRATEGIES 10 VII. RESPONSIBILITY AND CONTROLS 12 VIII. COMPETITIVE SOLICITATION 13 IX. AUTHORIZED INSTITUTIONS 14 X. PLEDGED COLLATERAL 15 XI. SAFEKEEPING 15 XII. WIRE AND ELECTRONIC SERVICES 16 XIII. INFORMATION REPORTING/EVALUATION 16 XIV. BANKING SERVICES 18 XV. GENERAL PROVISIONS 18 APPENDICES A. PUBLIC FUNDS INVESTMENT ACT 20 B. LIST OF AUTHORIZED CITY REPRESENTATIVES 41 C. CITY'S CODE OF ETHICS ORDINANCE 42 D. CITY'S INDEMNIFICATION ORDINANCE 62 E. WIRE AND ELECTRONIC SERVICES 65 F. INVESTMENT POLICY RESOLUTIONS 70 November 24, 1999 HAfin-0irbhMshmgdinvpoli.99 2 L INTRODUCTION It is the policy of the City of Corpus Christi to invest all available monies in conformance with these legal and administrative guidelines. Effective cash management is recognized as essential to good fiscal management. An aggressive cash management program will be pursued to maximize interest earnings as a viable and material revenue source. The City's portfolio shall be designated and managed in a manner responsive to the public trust and consistent with local, state, and federal law. Investments shall be made with the primary objective of o Preservation of capital and protection of principal; o Maintenance of sufficient liquidity to meet operating needs; o Security of city funds and investments; o Diversification of investments to minimize risk while maximizing interest earnings; and o Maximization of return on the portfolio. Earnings from investments will be used in a manner that will best serve the interests of the City of Corpus Christi. IL PURPOSE A. Authorization This Investment Policy is authorized by the City Council (see Appendix F) in accordance with Chapter 2256, Subchapter A of the Government Code - The Public Funds Investment Act (see the attached and incorporated Appendix A). B. Scope This Investment Policy applies to activities of the City, excluding pension funds, with regard to investing the financial assets of all Funds, including, but not limited to, the following Funds: General Operating Funds Special Revenue Funds Enterprise Funds Internal Service Funds Special Purpose Funds (within the control of Investment Officers) Capital Improvement Funds (Bond Proceeds, Bond Reserves and Debt Service, Interfimd Transfer and Commercial Paper) In addition to this policy, the investment of Bond Funds, Debt Service, and Reserve Funds shall be managed by their governing ordinances and Federal Law, including the Tax Reform Act of 1986 and subsequent legislation. November 16, 1999 x:Ifin dirdh\ahmstin poli.99 3 C. Review and Amendment This Policy shall be reviewed annually by the City Council on or before December 31 of each calendar year subsequent to its adoption. Amendments must be authorized by the City Council. The City Council shall adopt a written instrument by ordinance or resolution stating that it has reviewed the Investment Policy. The written instrument so adopted shall record any changes made to the Investment Policy. IIT DEFINITIONS Director of Finance - The Director of Finance is the Municipal Finance Officer responsible for City investments. Director of Finance's Designee - Controller or Chief Accountant Excess Cash Balances - Collected bank balances not needed to pay estimated check clearings. Investment Officers - City Treasurer and Investment Analyst Investment Portfolio - All City monies being invested under authority of the Investment Officers. Institution - Any firm, bank, bankholding company, broker or dealer who provides quotes for either the purchase or sale of investments. Third Party Safekeeping Institution - Any Institution not affiliated with Institution delivering the Investment. Investment - All authorized Securities listed in Item V. "AUTHORIZED INVESTMENTS AND MAXIMUM TERM." Investments approved by the Investment Committee include U.S. Treasuries, U.S. Agencies, Repurchase Agreements, Local Government Investment Pool, and Collateralized Certificates of Deposit. Decayed Transaction - An Investment which an Institution fails to deliver the City's Third Party Safekeeping Institution. Collateral - Securities pledged by an Institution to safeguard City assets; the City requires either U.S. Treasuries or U.S. Agencies Securities so that the market values can be readily determined at any point in time. Authorized City Representative - Officers authorized to transact as set out in the attached and incorporated Appendix B on behalf of the City (City Treasurer, Controller, Chief Accountant, and Director of Finance). Reserve Funds - Funds designated by Council for specific purposes which have not been appropriated for spending. November 16.1999 H:tfin dit ah\dmtgi\invpoli.99 4 Securities - Approved Investments designated by the Investment Committee to be held in the Investment Portfolio or acceptable to be pledged as Collateral to secure the monies of the City. Special Purpose Funds - Monies of non-profit corporations that Investment Officers are permitted to invest; includes such entities as the Corpus Christi Health Facilities Development Corporation, Coastal Bend Health Facilities Development Corporation, Corpus Christi Housing Finance Corporation, Corpus Christi Community Improvement Corporation, HOME Project, First Time Home Buyer, Corpus Christi Industrial Development Corporation, and Corpus Christi Crime Control and Prevention District. Authorized Selling Group - Primary dealer and regional firms that have been selected by the underwriter to sell their securities. Each authorized member of a selling group will offer the issue at the price authorized by the governmental agency. Qualified Representative - A person who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: (A) for a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers; (B) for a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution; or (C) for an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument on behalf of the investment pool. ;. r Q) for an investment management firm registered under the Investment Advisers Act of 1940 (15 U S.0 Section 80b-1 et seq.) or if not subject to registration under that Act. •. .,: . . 1.1 • l . ,. : 1 . i, `.f 1 811 .: . 1 .i 1 1 - investment - investment management firm, IV. INVESTMENT OBJECTIVES A. Preservation and Safety of Principal Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall Investment Portfolio. B. Liquidity The City's Investment Portfolio must be structured in a manner which maintains the liquidity necessary to pay obligations as they become due. Sufficient cash flows must Novanba 16. 1999 HASo-dirMha inigAinvpoli.99 5 be maintained by rapidly depositing monies and timing disbursements. Generally, Investments are matched to specific cash flow requirements such as payrolls, debt service payments, and other payables. Liquidity is also achieved by investing in Investments with active secondary markets or in Local Government Pools with stable net asset values. It is imperative that the Investment Portfolio and Excess Cash Balances be protected with sufficient Collateral at 102% of current market values so that monies are available as needed. C. Return on Investments The City's Investment Portfolio shall be designed with the objective of regularly exceeding the average yield of the three-month U.S. Treasury bill in a manner consistent with the principles of this policy described in IV.A and B. However, it must be recognized that during a declining market, satisfying this objective may not be practical until Investments mature and can be re -invested. For bond issues to which arbitrage restrictions apply, the primary objectives shall be to obtain satisfactory market yields and to minimize the costs associated with investing such monies. D. Diversification Diversification is required because of differing liquidity needs of the City and is employed as a way to control risk. Diversification minimizes the risk to the overall Investment Portfolio of potential losses on individual Securities and enhances the safety of the Investment Portfolio. Through the solicitation of competitive proposals, the City shall allocate and diversify its Investments through various Institutions. The following types of Investments will be solicited from the following types of Institutions: 1. Government Securities - through approved brokers; 2. Repurchase Agreements - through a Third Party Safekeeping Institution Agreement which includes an approved primary dealer, 3. Public Funds Investments Pools - through participation agreements; and 4. Certificates of Deposit - through approved local banks. The City recognizes that investment risks can result from default risk and market price risks due to various technical and fundamental economic factors, and other complications, leading to temporary illiquidity. To control market price risks, volatile Investments shall be avoided. To control default risk, the only acceptable method of payment will be on a "delivery versus November 16, 1999 x:lfn.&ahl imvpoa99 6 payment" basis for all transactions, except investment pool funds and repurchase agreements. "Delivery versus Payment"provides for payment to Institutions at the time the Investments are recorded in book entry form at the City's Third Party Safekeeping Institution, currently maintained at the Federal Reserve. For certificates of deposit, sufficient Collateral at 102% of current market values must be pledged to protect all City monies or monies under its control that exceed Federal Deposit Insurance Corporation (FDIC) coverage; the Collateral must be safekept at a Third Party Safekeeping Institution not affiliated with the bank or bank holding company providing the certificate of deposit. V. AUTHORIZED INVESTMENTS AND MAXIMUM TERM The City of Corpus Christi is authorized to invest in: A. Authorized Investments Obligations of the United States or its agencies and instrumentalities which currently include: November 16, 1999 H:t-dieali ahmgt\invpol.99 1. Short-term U.S. Treasuries: a. U.S. Treasury Bills b. U.S. Treasury Coupon Notes c. U.S. Treasury Notes and Strips 2. U.S. Agencies: a. Federal Home Loan Bank Maximum Term up to 365 days qp to 3 years up to 3 years* b. Federal National Mortgage Association. c. Federal Farm Credit *see Section V.B.3. Maximum Term up to 2 years up to 2 years up to 2 years up to 2 years up to 2 years d. Federal Home Loan Mortgage Corporation. e. Student Loan Marketing Association. 3. Repurchase Agreements up to 365 days Repurchase agreements fully collateralized at 102% with a defined maturity date placed with a primary government dealer and safekept at a Third Party Safekeeping Institution, as provided under the provisions of the PSA (Pubic Securities Association) master repurchase agreement. An executed agreement between the City, primary government dealer and Third Party Safekeeping Institution will be on file before the City will enter into a tri -party repurchase agreement. Weekly monitoring by the City's Investment Officers of all Collateral underlying repurchase agreements is required. More frequent monitoring may be necessary during periods of market volatility. 7 1. r. r C r r r r C tom. E. L Reverse repurchase agreements are not a pennitted Investment. 4. Local Government Investment Pool daily Investments made on behalf of the City by a public funds investment pool duly created to function as a money market mutual fund who marks its portfolio to market daily and, to the extent reasonably possible, who stabilizes its portfolio to market daily and, to the extent reasonably possible, who stabilizes its portfolio at a $1 net asset value. If the ratio of the market value of the Pool's portfolio divided by the book value of the portfolio is less than 99.50% or greater than 100.50%, the Pool's portfolio holdings shall be sold as necessary to maintain the ratio between 99.50% and 100.50%. The public funds investment pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally - recognized rating service with a weighted average maturity no greater than 90 days. 5. Collateralized Certificates of Deposit up to 1 year Certificates of deposit or other instruments issued by state and national banks domiciled in Texas that are: a. guaranteed or insured by the Federal Deposit Insurance Corporation or its successor; or b. secured by obligations that are described by Section V, Subdivision A.1(a) and A.1(b). Certificates of deposit must be fully collateralized at 102% of their market value. The City requires the bank to pledge U.S. Treasuries or U.S. Agencies as collateral. (Collateral Mortgage Obligations will not be eligible as Collateral -see XC.). The Investment Officers will monitor adequacy of collateralization on a weekly basis. B. Weighted Average Maturity In order to minimize risk of loss to the Investment Portfolio due to interest rate fluctuations, Investment maturities will not exceed the anticipated cash flow requirements of the Funds. Maturity guidelines by Fund are as follows: The maximum term for any Investment other than Reserve Funds is three years. The weighted averaged days to maturity shall be less than 365 days for Investments, other than Reserve Funds. November 16, 1999 H:\Bo-diteh\dimgdinvpoli.99 8 November 23, 1999 LOA\1000.046 The weighted average days to maturity of Investments, other than Reserve Funds, shall be 365 days or less. The Investment Officers will monitor the maturity level and make changes as appropriate. 2. Capital Improvement Funds (Bond Proceeds, Bond Reserves, Debt Service) The Investment maturity of that portion of the City Portfolio that represents Capital Improvement Funds (bond proceeds, reserve funds, and debt service) shall be determined considering: a. The anticipated cash flow requirements of the Capital Improvement Funds; and b. The "temporary period" as defined by Federal tax law during which time bond proceeds may be invested at an unrestricted yield. After the expiration of the temporary period, bond proceeds subject to yield restriction shall be invested considering the anticipated cash flow requirements of the Capital Improvement Funds. Before an Investment can be made of bond proceeds from all bond issues affected by the Tax Reform Act of 1986, a careful yield analysis must be performed to comply with the Tax Reform Act. Also, an annual rebate calculation must be performed to determine if the City is required to rebate interest at the end of each respective bond issue's five-year tern. Beginning on the anniversary of the third year for the respective bond issues, all bond proceeds will be yield restricted as required by the Tax Reform Act. 3. Reserve Funds: Established by Operative Bond Funds or by the City Council The following Reserve Funds may be invested up to seven years in U.S. Treasuries: 1vlaximnm Choke Canyon Fund,1050 $2,000,000 Debt Service Fund 2010 $4,000,000 Utility Refunding Fund 4100 $5,975,000 City monies governed by this Policy may not be invested in other investments permitted by law unless (i) such investments are specifically authorized for the investment of these monies by an ordinance adopted by the City Council issuing bonds or other debt obligations or (ii) this Policy is amended to permit such investment. 9 investment of these monies by an ordinance adopted by the City Council issuing bonds or other debt obligations or (ii) this Policy is amended to permit such investment. C. Methods to Monitor Investment Market Price The City monitors the market price of investments by obtaining this information from the Bloomberg system or the Tele -Rate system which are made available through the City's authorized institutional brokers. The City may also obtain market price information from other nationally recognized sources of financial information such as the Wall Street Journal. VL INVESTMENT MIX AND STRATEGIES A. Investment Mix As a target to ensure adequate liquidity, the Investment Portfolio administered by the Investment Officers should consist of at least 25% in U.S. Treasury Securities described in V.A.1.a. A minimum of 15% of the total Investment Portfolio shall be held in Investments with maturity dates of 90 days or less for liquidity. U.S. Treasuries/Agencies may be purchased for longer term maturities (greater than one year) but shall not exceed 40% of the total Investment Portfolio to preserve liquidity. Daily Investment reports shall specifically address whether stated Investment mix requirements are being met. Unless approved by the Investment Advisory Committee, the target percentages specified shall not be exceeded for temporary periods greater than thirty (30) days without the Investment Officers taking corrective action. B. Strategies Investment strategies for Operating Funds and Capital Improvement Funds have as their primary objective the assurance that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create an Investment Portfolio structure which will experience minimal volatility during economic cycles. To accomplish this strategy, the City will purchase high quality, short -to -medium- term investments which will compliment each other. To pay for anticipated disbursements, investments will be laddered to correspond with the projected cash needs of the City. Some Investments are acquired on the short end of the yield curve (90 days or less) to meet immediate cash needs. A few Investments are purchased on the intermediate part of the yield curve (1-3 years) to lock in higher interest rates when rates are projected to decline due to the economic cycle of the economy. The dollar weighted average investment maturity of 365 days or less will be calculated using the stated final maturity dates of each investment. November 16, 1999 HA6mdir1sMcsbmtinvpoli.99 10 Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligations on the required payment date. Investments purchased shall not have a stated final maturity date that exceeds the debt service payment date. Investment strategies for debt service reserve funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate debt service fund from investments with a low degree of volatility. In accordance with the bond ordinance specific to an individual bond issue which sets out the maximum investment term, Investments should be of high quality, with short -to -intermediate-term maturities. Investment strategies for Special Purpose Funds will have as their primary objective the assurance that anticipated cash flows are matched with adequate Investment liquidity. These investment portfolios shall include highly liquid investments to allow for flexibility and unanticipated project outlays. The stated final maturity dates of Investments held shall not exceed the estimated project completion date. C. Achieving Investment Return Objectives Investment selection shall be based on legality, appropriateness, liquidity, and risk/retum considerations. Monies designated for immediate expenditure should be passively invested. Passive investment provides for: 1. Liquidity to pay upcoming disbursements (payroll, debt service, payments, payables, etc.); 2. Maximizing investment terms under the current budget; and 3. Structuring the Investment Portfolio on a "laddered" basis. The remaining portion of the Investment Portfolio may be invested actively and the reasons for doing so, are: Active investment provides for: a. The ability to improve yields in the Investment Portfolio by riding the yield curve during business cycle recovery and expansion periods. Interest rates on longer maturities typically exceed those on shorter maturities. Therefore, longer maturities (that can be held to maturity, if necessary) are purchased in anticipation of selling later at the same or lower interest rate, improving the total return during the holding period. November 16, 1999 H:\fio-dir\ah\ crbmsbinvpoli.99 11 b. The ability to improve market sector diversification by swapping out of one investment into another for a better total return, to realign for disbursement projections, or to extend or shorten maturity depending on economic forecasts. The City Manager, or his designee, is required to approve any investment that must be sold at a loss. All gains and losses will be reported to the City Council and Investment Committee on a quarterly basis. VII. RESPONSIBILITY AND CONTROLS A. Authority to Invest The authority to invest City funds and the execution of any documentation necessary to evidence the investment of City funds is granted to the Director of Finance. The City Treasurer and the Investment Analyst are the designated Investment Officers responsible for the daily operation of the investment program. All investments will be approved in writing by the Director of Finance or Designee (excluding Investment Officers). The City Council may contract with an investment mana¢ement firm registered under the Investment Advisers Act of 1940 (.15 U.S.C. Section 80b-1 et seq.) or with the fir, !': •: • • 1 •I• • 1 • 1\4>;1l11 bll 1• Il .1i.11-111 • 41 ( 11' or other funds undecits control A contract made under authority of this subsection B. Establishment of Internal Controls The City Treasurer will establish a system of internal controls over the Investment activities of the City and document such controls in the Investment Procedures Manual. These internal controls shall be approved by the Director of Finance. C. Prudent Investment Management Investments shall be made with the same judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Prudent investment is to be judged by the Investment Portfolio as a whole, not on individual Investments. If liquidation is necessary due to a pool losing its AAA rating or for other reasons, liquidation will be done in a prudent manner consistent with the investment objectives of this policy and as provided in 2256.021 of the Government Code. Investment of monies shall be governed by the following investment objectives in order of priority: November 16, 1999 H:1fn-dMl b\SsngtMnvpoa99 12 1. preservation and safety of principal; 2. liquidity; and 3. yield. The designated Investment Officers shall perform their duties in accordance with the adopted Investment Policy and Procedures set forth in the Investment Procedures Manual. Investment Officers acting in good faith and in accordance with these policies and procedures shall be relieved of personal liability. The Investment Committee and Officers are indemnified as provided by City Ordinance attached and incorporated as Appendix D. D. Standards of Ethics The Investment Committee and City Treasurer will comply with the City's Code of Ethics Ordinance attached and incorporated as Appendix C which requires disclosure of financial interests by April of each year. The designated Investment Officers and all members of the Investment Committee shall adhere to the City's Ethics Ordinance. To the extent required by section 2256.005(1) of the Government Code, the Investment Committee and City Treasurer shall make such filings as required by law. E. Training and Education Recognizing that the training and education of Investment Officers contributes to efficient and effective investment management, the City requires its Investment Officers to obtain appropriate professional training. Such training is currently required by, and shall be obtained in accordance with Section 2256.008 of the Government Code Public Funds Investment Act. The Investment Committee approves investment training seminars presented by the following organizations: Government Finance Officers Association Government Finance Officers Association of Texas Government Treasurers Organization of Texas Municipal Treasurers Association Texas Municipal League JI the investment Officer desires to attend an investment training seminar presented by another organization for training credit, such seminar must be aonroved by the City Manager or his designee. VIIL COMPETITIVE SOLICITATION Except for repurchase agreements and public funds investment pools , any new issue investment will be purchased through an Authorized Selling Group or directly through the issuer. November 16,1999 HA6n-0i$sh\cehmgtlinvpol.99 13 For any Investment purchased or sold through the secondary market, the City will obtain at least three proposals from Authorized Institutions. Any Institution authorized to participate in the City's investment program must meet Collateral pledge requirements outlined in Section IV.D. of these guidelines and must submit annual financial reports. IX. AUTHORIZED INSTITUTIONS All institutions who seek to sell an authorized Investment to the City are required to complete the questionnaire and the Year 2000 Compliance Statement approved by the Investment Committee and furnish supporting documentation required by the Investment Committee. Securities shall only be purchased through those Institutions approved by the Investment Committee. A. Investments shall only be made with those Institutions who have executed a written instrument in a form acceptable to the City, executed by a Qualified Representative of the Institution, and substantially to the effect that the Institution has: 1. Received, thoroughly reviewed and acknowledged, in writing, receipt and understanding of the City's Investment Policy, and; 2. Acknowledged that the Institution has implemented reasonable procedures and controls in an effort to preclude' investment transactions conducted between the Institution and the City that are not authorized by the City's Investment Policy. B. Investments shall only be made with those Institutions who have met the qualifications and standards established by the City's Investment Committee and set forth in the Investment Procedures Manual. C. The Investment Committee shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. D. The City Treasurer will request the Investment Committee to authorize deletion of Institutions for: 1. Slow response time; 2. Less than competitive pricing; 3. Little or no information on technical or fundamental expectations based on economic indicators; 4. Decayed Transactions or continuing operational difficulties; or 5. Unwillingness to continue to abide the provisions listed in IX.A.;or ¢ Other reasons as approved by the Investment Committee Nova nbor 16,1999 xAfm-di sh\wbrop\invpoli.99 14 tom. r E r C_ r r t r r r X. PLEDGED COLLATERAL The market value of pledged Collateral must be at least 102% of the principal plus accrued interest for Excess Cash Balances, certificates of deposit, and repurchase agreements. Evidence of proper collateralization in the form of original safekeeping receipts held at a Third Party Safekeeping Institution not affiliated with the Institution pledging the Collateral will be approved by the City Treasurer and will be maintained in the City's Treasurer Office. An authorized City Representative (See Appendix B) will approve and release all pledged collateral. A. Collateral Substitution Collateralized Investments and certificates of deposit often require substitution of Collateral. Any Institution must contact the Investment Officers for approval and settlement. The substituted collateral's value will be calculated and substitution approved if its value is equal to or greater than the required collateral value. Substitution is allowable for all transactions, but should be limited, to minimize the City's potential administrative problems. B. Collateral Reductions Should the collateral's market value exceed the required amount, any Institution may request approval from the Investment Officer to reduce collateral. Collateral reductions may be permitted only if the City's records indicate that the collateral's market value exceeds the required amount. C. Prohibited Securities Investment securities described in Section 2256.009(b), Government Code, shall not be eligible for use as collateral of City monies governed by this Policy. XL SAFEKEEPING A. Third Party Safekeeping Agreement The City shall contract with a Bank or Banks for the safekeeping of Securities either owned by the City as a part of its Investment Portfolio or held as Collateral to secure certificates of deposit, repurchase agreements, or Excess Cash Balances. B. Safekeeping of Certificate of Deposit Collateral All Collateral securing bank and savings and loan deposits must be held by a Third Party Safekeeping Institution approved by the City, or Collateral may be held at the Federal Reserve Bank. November 16, 1999 HAfiin-dieah'ahoigNnvpol.99 15 C. Safekeeping of Repurchase Agreement Collateral The U.S. Treasuries which serve as Collateral for repurchase agreements with Institutions must be delivered to a Third -Party Safekeeping Institution with which the City has established a third -party safekeeping agreement. XII. WIRE AND ELECTRONIC SERVICES Wire and electronic services are to be provided as referenced in the City's Depository Services agreement, portions of which are attached and incorporated as Appendix E. The City requests applications for depository services every three to five years. XIII. INFORMATION REPORTING/EVALUATION The City Treasurer and Investment Analyst are hereby designated as the Investment Officers and are responsible for the daily operation of the Investment program and will report to the Investment Committee on a quarterly basis. A. Investment Committee The investment committee consists of City Manager Deputy City Manager Assistant City Managers Director of Finance City Attorney Director of Management and Budget. The Investment Committee will be responsible for monitoring, reviewing, and making recommendations regarding the City's Investment program to the City Council. Reports will be provided to the City Council by the Investment Officers no less than quarterly, as required by the Public Funds Investment Act. B. Internal Reporting/Evaluation The following reports are to be submitted on a: 1. Daily basis to the Director of Finance or Designee (Excluding Investment Officers): a. Cash Position by Bank Account b. Collateral Position c. Investment Portfolio (Including Purchases/Maturities) 27. Demand Cieu6Iatc3 RcpeaYD to the I IG 111 IL CL 11 nutted. a' November 16, 1999 H:\So-dic\uheibmgtinvpo i.99 16 r r r 1. r [_. r r r r r r r u..rc3c ncIV 2. Quarterly Reporting to Investment Committee and City Council. Executive Summary Schedules November 18, 1999 H:To-dike\ abmiDinvpoli.99 a. Combined Investment Portfolio Report of Markert Versus Book Values b. Combined Portfolio Composition c. Individual Portfolio Composition d. Cash and Equivalents e. U.S. Treasuries f. Investments Greater than One Year g. Combined Summary of Investment Transactions h. Combined Summary of Portfolio Activity i. Combined Investment Portfolio - Weighted Average Maturity j. Income Received from Investments k. Combined Analysis of Gains on Sale of Securities 1. Aggregate Activity per Broker m. Analysis of Excess Coverage n. Comparison of Investment Returns to Benchmarks o. Combined Summary of Investment Transactions - Lake Texana Project p. Summary of Portfolio Activity - Lake Texans Project q. Weighted Average Maturity - Lake Texans Project r. Trade Journal s. Trade Journal t. Approved Institutional Brokers u. Glossary v. Compliance Statement w. Quarterly Investment Committee Meeting Agenda and Minutes 7 IIl3YLYRV v f. I1iielt ,twat L,tcas g investment -Survey k 2atnalysis-oferairtsOL-osses)-otr Safe -of -Securities t. OL V alYG3 V3. 1JVYA Y6&u j- ilbfi. IY�e3te.'sL.t�.�� k: 9 17 1% c�tn,�nt P.,rtfv6 E r t. t r 1. r r E C C. External Reporting/Evaluations On a quarterly basis, the City's main depository and all applicable Institutions providing certificates of deposit in excess of FDIC coverage will provide to the Investment Officer for review a copy of the balance sheet and income statement for the Call Report. All Institutions will provide annual audited financial statements. Any local government investment pools must provide reports and disclosure statements as required by the Public Funds Investment Act. D. Record Retention The City follows the guidelines of retaining records for seven years from City's current fiscal year, as recommended in the Texas State Library Municipal Records Manual or may be authorized by the City's local records management guidelines. XIV. BANKING SERVICES All depository services are provided in the City's main depository agreement. Other services such as credit cards, direct deposit of payroll or other services may be administered through separate agreements. To aggressively invest Excess Cash Balances, controlled disbursements accounts, zero balance accounts and other cash management tools may be employed. XV. GENERAL PROVISIONS A. Audits and Inspections. During regular business hours and as often as the Investment Officers deem necessary, the Institution providing certificates of deposit will make available for examination by the City Manager, his duly authorized agent, accountant, or legal representative, such records and data to assure the pledge of Collateral, availability of Collateral, and financial stability of the Institution. B. Compliance with Laws. Each Institution agrees to comply with all federal, state, and local laws, rules, regulations, and ordinances. The personnel or officers of such Institution, shall be fully qualified and authorized under federal, state, and local law to perform the services set out under this Policy. Each Institution shall permit the Investment Officers to audit, examine, and make excerpts or transcripts from such records and to make audits of all contract, invoices, materials, and other data relating to applicable Investments. C. Performance Audits. The City's Annual External Financial Audit shall include a compliance audit of management controls on Investments and adherence to this Policy. If the City invests in other than money market mutual funds, investment pools or accounts offered by its depository in the form of certificates of deposit or money market accounts, the quarterly reports prepared by Investment Officers for the City Council must be formally reviewed at least annually by an independent auditor. The results of the review must be reported to the City Council by that auditor. November 16, 1999 H:\-dirWtosbmgtWtvpoti.99 18 D. Investment Policy Resolution. The resolution authorizing this Investment Policy is attached and incorporated as Appendix F "Investment Policy Resolutions." November 16, 1999 H:tdirV6 linvpoli.99 19 r [. r r r r.� r r r c r E r APPENDIX A Public Fund Investment Act, Section 2256 Ilearisiar City of Corpus Chnsti APPENDIX A CHAPTER 2256. PUBLIC FUNDS INVESTMENT SUBCHAPTER A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES Sec. 2256.001. Short Title. This chapter may be cited as the Public Funds Invesnnent Act. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.002. Definitions. In this chapter. (1) "Bond proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes. (2) "Book value" means the face or par value of an investment plus accrued interest or minus amortization or accretion. (3) "Funds" means public funds in the custody of a state agency or local government that (A) are not required by law to be deposited in the state treasury; and (B) the investing entity has authority to invest. (4) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code. (5) "Investing entity" and "entity" mean an entity subject to this chapter and described by Section 2256.003. (6) "Investment pool" means an entity created under this code to invest public funds jointly on behalf of the entities that participate in the pool and whose investment objectives in order of priority are: (A) preservation and safety of principal; (3) liquidity; and (C) yield. (7) "Local government" means a municipality, a county, a school district, a district or authority created under Section 52(bx1) or (2), Article 1]I, or Section 59, Article XVI, Texas Constitution, a fresh water supply district, a hospital district, and any political subdivision, authority, public corporation, body politic, or instrumentality of the State of 20 r r r C. r C. { c r. r r 7 r Texas, and any nonprofit corporation acting on behalf of any of those entities. (8) "Market value" means the face or par value of an investment multiplied by the premium or discount quoted on the valuation date. (9) "Pooled fund group" means an internally created fund of an investing entity in which one or more institutional accounts of the investing entity are invested. (10) "School district" means a public school district. (11) "Separately invested asset" means an account or fund of a state agency or local government that is not invested in a pooled fund group. (12) "State agency" means an office, department, commission, board, or other agency that is part of any branch of state government, an institution of higher education, and any nonprofit corporation acting on behalf of any of those entities. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.003. Authority to Invest Funds; Entities Subject to this Chapter. Each governing body of the following entities may purchase, sell, and invest its funds and fimds under its control in investments authorized under this subchapter in compliance with investment policies approved by the governing body and according to the standard of care prescribed by Section 2256.006: (1) a local government; (2) a state agency; (3) a nonprofit corporation acting on behalf of a local government or a state agency; or (4) an investment pool acting on behalf of two or more local governments, state agencies, or a combination of those entities. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept 1, 1995.. Sec. 2256.004. Applicability. This subchapter does not apply to: (1) a public retirement system as defined by Section 802.001; (2) state funds invested as authorized by Section 404.024; (3) an institution of higher education having total endowments of at least $95 million in book value on May 1, 1995; or 21 r r r r r r r r r r t 1 r (4) funds invested by the Veterans' Land Board as authorized by Chapter 161, 162, or 164, Natural Resources Code. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. I, 1995. Sec. 2256.005. Investment Policies; Investment Strategies; Investment Officer. (a) The governing body of an investing entity shall adopt by rule, order, ordinance, or resolution, as appropriate, a written investment policy regarding the investment of its funds and funds under its control. (b) The investment policies must: (1) be written; (2) primarily emphasize safety of principal and liquidity; (3) address investment diversification, yield, and maturity and the quality and capability of investment management; and (4) include: (A) a list of the types of authorized investments in which the investing entity's funds may be invested; (B) the maximum allowable stated maturity of any individual investment owned by the entity; and (C) for pooled fund groups, the maximum average dollar -weighted maturity allowed based on the stated maturity date for the portfolio. (c) The investment policies may provide that bids for certificates of deposit be solicited: (1) orally; (2) in writing; (3) electronically; or (4) in any combination of those methods. (d) As an integral part of an investment policy, the governing body shall adopt a separate written investment strategy for each of the funds under its control. Each investment strategy must describe the investment objectives for the particular fund using the following priorities in order of importance: (1) understanding of the suitability of the investment to the financial requirements of the 22 r r r r r 1. r L r r L.. r r^ r entity; (2) preservation and safety of principal; (3) liquidity; (4) marketability of the investment if the need arises to liquidate the investment before maturity; (5) diversification of the investment portfolio; and (6) yield. (e) The governing body of an investing entity shall review its investment policy and investment strategies not less than annually. (0 Each investing entity shall designate. by rule, order, ordinance, or resolution, as appropriate, one or more officers or employees of the state agency, local government, or investment pool as investment officer to be responsible for the investment of its funds. Unless otherwise authorized by law, a person may not deposit, withdraw, invest, transfer, or manage in any other manner funds of a state agency, Local government, or investment pool without express written authority of the governing body, chief executive officer, or chief financial officer of the state agency, local government, or investment pool, consistent with the investment policy adopted by the entity. Authority granted to a person to deposit, withdraw, invest, transfer, or manage an entity's funds is effective until rescinded by the investing entity or until termination of the person's employment by the investing entity. (g) Subsection (f) does not apply to a state agency, local government, or investment pool for which an officer of the entity is assigned by law the function of investing its funds. (h) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be designated as an investment officer under Subsection (f). (i) An investment officer of an entity who has a personal business relationship with an entity seeking to sell an investment to the entity shall file a statement disclosing that personal business interest. An investment officer who is related within the second degree by affinity or consanguinity, as determined under Chapter 573, to an individual seeking to sell an investment to the investment officer's entity shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the governing body of the entity. a) The governing body of an investing entity may specify in its investment policy that any investment authorized by this chapter is not suitable. (k) A written copy of the investment policy shall be presented to any person seeking to sell to the entity an authorized investment. The registered principal of the business organization seeking to sell an authorized investment shall execute a written instrument substantially to the effect that the 23 registered principal has: (1) received and thoroughly reviewed the investment policy of the entity; and (2) acknowledged that the organization has implemented reasonable procedures and controls in an effort to preclude imprudent investment activities arising out of investment transactions conducted between the entity and the organization. (1) The investment officer of an entity may not buy any securities from a person who has not delivered to the entity an instrument in substantially the form provided by Subsection (k). (m) An investing entity, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the entity's established investment policies. State agencies shall report the results of the audit performed under this subsection to the state auditor. The state auditor shall compile the results of reports received under this subsection and annually report those results to the legislative audit committee. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.006. Standard of Care. (a) Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived Investment of funds shall be governed by the following investment objectives, in order of priority: (1) preservation and safety of principal; (2) liquidity; and (3) yield. (b) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: (1) the investment of all funds, or funds under the entity's control, over which the officer bad responsibility rather than a consideration as to the prudence of a single investment; and (2) whether the investment decision was consistent with the written investment policy of the entity. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.007. Investment Training; State Agency Board Members and Officers. 24 r C_ r L c r r r r r r r (a) Each member of the governing board of a state agency and its investment officer shall attend at least one training session relating to the person's responsibilities under this chapter within six months after taking office or assuming duties. (b) The governor's office shall provide training under this section for members and officers other than members and officers• of an institution of higher education. The Texas Higher Education Coordinating Board shall provide the training for members and officers of institutions of higher education. (c) Training under this section must include education in investment controls, security risks, strategy risks, market risks, and compliance with this chapter. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.008. Investment Training; Local Governments. (a) The treasurer, the chief financial officer if the treasurer is not the chief financial officer, and the investment officer of a local government shall attend at least one training session relating to the treasurer's or officer's responsibilities under this chapter within 12 months after taking office or assuming duties. (b) Training under this section must include education in investment controls, security risks, strategy risks, market risks, and compliance with this chapter. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.009. Authorized Investments: Obligations of, or Guaranteed by Governmental Entities. (a) Except as provided by Subsection (b), the following are authorized investments under this subchapter (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of this state or its agencies and instrumentalities; (3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; (4) other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities; and (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not 25 less than A or its equivalent. (b) The following are not authorized investments under this section: (1) obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; (3) collateralized mortgage obligations that have a stated final maturity date of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.010. Authorized Investments: Certificates of Deposit and Share Certificates. A certificate of deposit is an authorized investment under this subchapter if the certificate is issued by a state or national bank domiciled in this state, a savings and loan associatidn domiciled in this state, or a state or federal credit union domiciled in this state and is: (1) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor, (2) secured by obligations that are described by Section 2256.009(a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by Section 2256.009(b); or (3) secured in any other manner and amount provided by law for deposits of the investing entity. Amended by Acts 1995, 74th Leg., ch. 32, Sec. 1, eff. April 28, 1995; Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.011. Authorized Investments: Repurchase Agreements. (a) A fully collateralized repurchase agreement is an authorized investment under this subchapter if the repurchase agreement: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(aXI); and 26 L_ L r r r r c r r t. r. (3) requires the securities being purchased by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and (4) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. (b) In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described by Section 2256.009(aX1), at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. (c) Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. (d) Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments but the term of the authorized investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. I, 1995. Sec. 2256.012. Authorized Investments: Banker's Acceptances. A bankers' acceptance is an authorized investment under this subchapter if the bankers' acceptance: (1) has a stated maturity of 270 days or fewer from the date of its issuance; (2) will be, in accordance with its terms, liquidated in full at maturity; (3) is eligible for collateral for borrowing from a Federal Reserve Bank; and (4) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent ratio$ by at least one nationally recognized credit rating agency. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,1995. Sec. 2256.013. Authorized Investments: Commercial Paper. Commercial paper is an authorized investment under this subchapter if the commercial paper. (1) has a stated maturity of 270 days or fewer from the date of its issuance; and 27 (2) is rated not Less than 41 or P-1 or an equivalent rating by at least: (A) two nationally recognized credit rating agencies; or (B) one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.014. Authorized Investments: Mutual Funds. (a) A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is regulated by the Securities and Exchange Commission; (2) has a dollar -weighted average stated maturity of 90 days or fewer; and (3) includes in its investment objectives the maintenance of a stable net asset value of 51 for each share. (b) In addition to a no-load money market mutual fimd permitted as an authorized investment Subsection (a), a no-load mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is registered with the Securities and Exchange Commission; (2) has an average weighted maturity of less than two years; (3) is invested exclusively in obligations approved by this subchapter, (4) is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent and (5) conforms to the requirements set forth in Sections 2256.016(b) and (c) relating to the eligibility of investment pools to receive and invest finds of investing entities. (c) An entity is not authorized by this section to: (1) invest in the aggregate more than 80 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in money market mutual funds described in Subsection (a) or mutual funds described in Subsection (b), either separately or collectively; (2) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in mutual 28 L t r L_ r r r funds described in Subsection (b); (3) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection (b); or (4) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.015. Authorized Investments: Guaranteed Investment Contacts. (a) A guaranteed investment contract is an authorized investment for state agencies for bond proceeds under this subchapter if the guaranteed investment contract: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a)(1), excluding those obligations described by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract; and (3) is pledged to the entity and deposited with the entity or with a third party Selected and approved by the entity. (b) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under this subchapter in a guaranteed investment contact with a term of longer than five years from the date of issuance of the bonds. (c) To be eligible as an authorized investment: (1) the governing body of the entity must specifically authorize guaranteed investment contracts as an eligible investment in the order, ordinance, or resolution authorizing the issuance of bonds; (2) the entity must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received (3) the entity must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received (4) the price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and (5) the provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract. 29 L r r r C L r C E. r Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, elf. Sept. 1, 1995. Sec. 2256.016. Authorized Investments: Investment Pools. (a) An entity may invest its funds and funds under its control through an eligible investment pool if the governing body of the entity by rule, order, ordinance, or resolution, as appropriate, authorizes investment in the particular pool. An investment pool shall invest the funds it receives from entities in authorized investments permitted by this subchapter. (b) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must famish to the investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is allowed to be invested; (2) the maximum average dollar -weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of the members of the advisory board of the pool and the dates their terms expo; (7) the custodian bank that will safekeep the pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the pool; (11) the requirements to be satisfied for an entity to deposit fimds in and withdraw funds from the pool and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, average dollar -weighted maturities, and expense ratios. (c) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized 30 L_ C F r r l,. r r r representative of the entity: (1) investment transaction confirmations; and (2) a monthly report that contains, at a minimum. the following information: (A) the types and percentage breakdown of securities in which the pool is invested; (B) the current average dollar -weighted maturity, based on the stated maturity date, of the pool; (C) the current percentage of the pool's portfolio in investments that have stated maturities of more than one year, (D) the book value versus the market value of the pool's portfolio, using amortized cost valuation; (E) the size of the pool; (F) the number of participants in the pool; (G) the custodian bank that is safekeeping the assets of the pool; (II) a listing of daily transaction activity of the entity participating in the pool; (I) the yield and expense ratio of the pool; (J) the portfolio managers of the pool; and (K) any changes or addenda to the offering circular. (d) An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. (e) In this section, "yield" shall be calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the federal Securities and Exchange Commission. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.017. Portfolio of Certain Investment Pools. A public funds investment pool created to function as a money market mutual fund must mark its portfolio to market daily and, to the extent reasonably possible, stabilize at a S1 net asset value. If the ratio of the market value of the portfolio divided by the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the 31 ratio between 0.995 and 1.005. Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.46(a), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.018. Advisory Board of Investment Pools. (a) An investment pool other than a pool described by Subsection (b) shall establish an advisory board composed of participants in the pool and other persons. (b) A public funds investment pool created under Chapter 791 and managed by a state agency shall establish an advisory board composed equally of participants in the pool and other persons who do not have a business relationship with the pool. A board member must be qualified to advise the pool. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.019. Rating of Certain Investment Pools. A public funds investment pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.020. Authorized Investments: Institutions of Higher Education. In addition to the authorized investments permitted by this subchapter, an institution of higher education may purchase, sell, and invest its funds and funds under its control in the following: (1) cash management and fixed income funds sponsored by organizations exempt from federal income taxation under Section 501(0, Internal Revenue Code of 1986 (26 U.S.C. Section 501(0); (2) negotiable certificates of deposit issued by a bank that has a certificate of deposit rating of at least 1 or the equivalent by a nationally recognized credit rating agency or that is associated with a holding company having a commercial paper rating of at least A-1, P-1, or the equivalent by a nationally recognized credit rating agency., and (3) corporate bonds, debentures, or similar debt obligations rated by a nationally recognized investment rating firm in one of the two highest long-term rating categories, without regard to gradations within those categories. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.021. Effect of Loss of Required Rating. An investment that requires a minimum rating under this subchapter does not qualify as an authorized investment during the period the investment does not have the minimum rating. An 32 entity shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. I, 1995. Sec. 2256.022. Expansion of Investment Authority. Expansion of investment authority granted by this chapter shall require a risk assessment by the state auditor or performed at the direction of the state auditor. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.023. Internal Management Reports. (a) Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report of investment transactions for all funds covered by this chapter for the preceding reporting period. (b) The report must: (1) describe in detail the investment position of the entity on the date of the report; (2) be prepared jointly by all investment officers of the entity; (3) be signed by each investment officer of the emits; (4) contain a summary statement of each pooled fund group that states the: (A) beginning market value for the reporting period; (B) additions and changes to the market value during the period; and (C) ending market value for the period; (5) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fiord type invested; (6) state the maturity date of each separately invested asset that has a maturity date; (7) state the account or fiord or pooled group fimd in the state agency or local government for which each individual investment was acquired; and (8) state the compliance of the investment portfolio of the state agency or local government as it relates to: (A) the investment strategy expressed in the agency's or local government's investment policy; and 33 r E r C L r r r L_ r r r r (B) relevant provisions of this chapter. (c) The report shall be presented not less than quarterly to the governing body and the chief executive officer of the entity within a reasonable time after the end of the period. Added by Acts 1995, 74th•Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.024. Subchapter Cumulative. (a) The authority granted by this subchapter is in addition to that granted by other law. Except as provided by Subsection (b), this subchapter does not: (1) prohibit an investment specifically authorized by other law; or (2) authorize an investment specifically prohibited by other law. (b) Except with respect to those investing entities described in Subsection (c), a security described in Section 2256.009(6) is not an authorized investment for a state agency, a local government, or another investing entity, notwithstanding any other provision of this chapter or other law to the contrary. (c) Mortgage pass-through certificates and individual mortgage loans that may constitute an investment described in Section 2256.009(b) are authorized investments with respect to the housing bond programs operated by: (1) the Texas Department of Housing and Community Affairs or a nonprofit corporation created to act on its behalf; (2) an entity created under Chapter 392, Local Government Code; or (3) an entity created under Chapter 394, Local Government Code. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. SUBCHAPTER B. MISCELLANEOUS PROVISIONS Sec. 2256.051. Electronic Funds Transfer. Any local government may use electronic means to transfer or invest all funds collected or controlled by the local government Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.052. Private Auditor. Notwithstanding any other law, a state agency shall employ a private auditor if authorized by the 34 legislative audit committee either on the committee's initiative or on request of the governing body of the agency. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.053. Payment for Securities Purchased by State. The comptroller, the state treasurer, or the disbursing officer of an agency that has the power to invest assets directly may pay for authorized securities purchased from or through a member in good standing of the National Association of Securities Dealers or from or through a national or state bank on receiving an invoice from the seller of the securities showing that the securities have been purchased by the board or agency and that the amount to be paid for the securities is just, due, and unpaid. A purchase of securities may not be made at a price that exceeds the existing market value of the securities. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,1995. Sec. 2256.054. Delivery of Securities Purchased by State. A security purchased under this chapter may be delivered to the state treasurer, a bank, or the board or agency investing its finds. The delivery shall be made under normal and recognized practices in the securities and banking industries, including the book entry procedure of the Federal Reserve Bank. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,1995. Sec. 2256.055. Deposit of Securities Purchased by State. At the direction of the state treasurer or the agency, a security purchased under this chapter may be deposited in trust with a bank or federal reserve bank or branch designated by the treasurer, whether in or outside the state. The deposit shall be held in the entity's name as evidenced by a tout receipt of the bank with which the securities are deposited. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,1995. 35 r L r z r LX t r r r r 76(R) HB 3009 Enrolled version - Bill Text 1-1 AN ACT 1-2 relating to investments and audits under the Public Funds 1-3 Investment Act. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 2256.002(10), Government Code, is amended 1-6 to read as follows: 1-7 (10) "Qualified representative" means a person who 1-8 holds a position with a business organization, who is authorized to 1-9 act on behalf of the business organization, and who is one of the 1-10 following: 1-11 (A) for a business organization doing business 1-12 that is regulated by or registered with a securities commission, a 1-13 person who is registered under the rules of the National 1-14 Association of Securities Dealers; 1-15 (B) for a state or federal bank, a savings bank, 1-16 or a state or federal credit union, a member of the loan committee 1-17 for the bank or branch of the bank or a person authorized by 1-18 corporate resolution to act on behalf of and bind the banking 1-19 institution; [et] 1-20 (C) for an investment pool, the person 1-21 authorized by the elected official or board with authority to 1-22 administer the activities of the investment pool to sign the 1-23 written instrument on behalf of the investment pool; or 1-24 (D) for an investment management firm registered 2-1 under the Investment Advisers Act of 1940 0.5 U.S.C. Section 80b-1 2-2 et sea.) or. if not subiect to registration under that Act 2-3 registered with the State Securities Board, a Person who is an 2-4 officer or principal of the investment management firm. 2-5 SECTION 2. Section 2256.003, Government Code, is amended to 2-6 read as follows: 2-7 Sec. 2256.003. AUTHORITY TO INVEST FUNDS; ENTITIES.SUBJECT 2-8 TO THIS CHAPTER. (a) Each governing body of the following 2-9 entities may purchase, sell, and invest its funds and funds under 2-10 its control in investments authorized under this subchapter in 2-11 compliance with investment policies approved by the governing body 2-12 and according to the standard of care prescribed by Section 2-13 2256.006: 2-14 (1) a local government; 2-15 (2) a state agency; 2-16 (3) a nonprofit corporation acting on behalf of a 2-17 local government or a state agency; or 2-18 (4) an investment pool acting on behalf of two or more 2-19 local governments, state agencies, or a combination of those 2-20 entities. 2-21 (b) In the exercise of its powers under Subsection (a). the 2-22 aovernina body of an investina entity may contract with an 2-23 investment management firm registered under the Investment Advisers 2-24 Act of 1940 (15 U.S.C. Section 80b-1 et seg.) or with the State 2-25 Securities Board to Provide for the investment and management of 2-26 its Public funds or other funds under its control. A contract made 2-27 under authority of this subsection may not be for a term longer 3-1 than two years. A renewal or extension of the contract must be 3-2 )Dade by the aovernina body of the investina entity by order. 3-3 ordinance. or resolution. 3-4 (c) This chapter does not prohibit an investina entity or 3-5 investment officer from using the entity's employees or the 3-6 services of a contractor of the entity to aid the investment 3-7 officer in the execution of the officer's duties under this 3-8 chapter. 3-9 SECTION 3. Section 2256.004, Government Code, as amended by 3-10 Chapters 505 and 1421, Acts of the 75th Legislature, Regular 3-11 Session, 1997, is amended to read as follows: 3-12 Sec. 2256.004. APPLICABILITY. jjj This subchapter does not r ..Jyiewtext.cmd7LECn76&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIXO3009 10/28/99 36 r f r r r r f C r r r f 76(R) HB 3009 Enrolled version - Bill Text 3-13 3-14 3-15 3-16 3-17 3-18 3-19 3-20 3-21 3-22 3-23 3-24 3-25 3-26 3-27 4-1 4-2 4-3 4-4 4-5 4-6 4-7 4-8 4-9 4-10 4-11 4-12 4-13 4-14 4-15 4-16 4-17 4-18 4-19 4-20 4-21 4-22 4-23 4-24 4-25 4-26 4-27 5-1 5-2 5-3 • 5-4 5-5 5-6 5-7 5-8 5-9 5-10 5-11 5-12 5-13 5-14 5-15 5-16 5-17 5-18 5-19 5-20 5-21 5-22 apply to: 802.001; 404.024; endowments authorized Coe) (1) a public retirement system as defined by Section (2) state funds invested as authorized by Section (3) an institution of higher education having total of at least $95 million in book value on May 1, 1995; (4) funds invested by the Veterans' Land Board as by Chapter 161, 162, or 164, Natural Resources Code; (5) registry funds deposited with the county or district clerk under Chapter 117, Local Government Code; or[r] (6) [454-1 a deferred compensation plan that qualifies under either Section 401(k) or 457 of the Internal Revenue Code of 1986 (26 U.S.C. Section 1 et seq.), as amended. (b) This subchapter does sot apply t9 an investment donated to an investina entity for a particular purpose or under terms of use specified by the donor. SECTION 4. Section 2256.005, Government Code, is amended by amending Subsections (f), (k), and (m) and adding Subsections (n) and (o) to read as follows: (f) Each investing entity shall designate, by rule, order, ordinance, or resolution, as appropriate, one or more officers or employees of the state agency, local government, or investment pool as investment officer to be responsible for the investment of its funds consistent with the investment policy adopted by the entity. If the oovernina body of an investina entity has contracted with another investing entity to invest its_funde, the investment officer of the other investina entity is_considered to be the investment officer of the first Investing entity for purposes of this chapter. Authority granted to a person to invest an,entity's• funds is effective until rescinded by the investing entity,.fee) until the expiration of the officer's term or the termination of the person's employment by the investing entity. or if ag investment management firm. until the expiration of the contract with the investing entity. In the administration of the duties of an investment officer, the person designated as investment officer shall exercise the judgment and care, under prevailing circumstances, that a prudent person would exercise in the management of the person's own affairs, but the governing body of the investing entity retains ultimate responsibility as fiduciaries of the_ assets of the entity. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the investing entity. (k) A written copy of the investment policy shall be presented to any person offering to engage in an investment transaction with an investing entity or to an investment management, firm under contract with an investina entity to invest or manage the entity's investment portfolio. For purposes of this subsection, a business organization includes investment pools And an investment. management firm under contract with an investing entity to invest or manage the entitv'_s investment portfolio. Nothing in this subsection relieves the investing entity of the responsibility for monitoring the investments made by the investing entity to determine that they are in compliance with the investment policy. The qualified representative of the business organization offering to engage in an investment transaction with an investing entity shall execute a written instrument in a form acceptable to the investing entity and the business organization substantially to the effect that the business organization has: (1) received and reviewed the investment policy of the entity; and (2) acknowledged that the business organization has implemented reasonable procedures and controls in an effort to ..Jviewtextcmd?LEG=76&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIX=03009 10/28/99 37 r r r r r r r r r`. r r r r r r r r 76(R) HB 3009 Enrolled version - Bill Text 5-23 5-24 5-25 5-26 5-27 6-1 6-2 6-3 6-4 6-5 6-6 6-7 6-8 6-9 6-10 6-11 6-12 6-13 6-14 6-15 6-16 6-17 6-18 6-19 6-20 6-21 6-22 6-23 6-24 6-25 6-26 6-27 7-1 7-2 7-3 7-4 7-5 7-6 7-7 7-8 7-9 7-10 7-11 7-12 7-13 7-14 7-15 7-16 7-17 7-18 7-19 7-20 7-21 7-22 7-23 7-24 7-25 7-26 7-27 8-1 8-2 8-3 8-4 8-5 preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective investment standards. (m) An investing entity other than a state agency, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the entity's established investment policies. (gest -- --- --- --- - - ---'`;.l_-. The .xe_c a..diter „Loll eatpac (n) Except as provided bv Subsection COL at_least once every two years a state_ agency shall arrange mor a compliance audit of management controls on investments and adherence t. the agency's established investment policies, The compliance audit shall be performed by the aaencv's internal auditor or by a orivate auditor employed in the manner provided by Section 321,.922. Not later than January 1 of each even -numbered vear, a state agency shall report the results of the most recent audit Performed under this subsection to the state auditor. Aitate agency also shall report tt the state auditor other information the state auditor determ nes necessary to assess compliance with laws and policies applicable to state agency investments. A_report under this subsection shall be prepared in a manner the state auditor prescribes. (o) The audit requirements of Subsection (n1 do not apply to assets of a state agency that are invested by the comptroller under Section 404.024. SECTION 5. Section 2256.007(c), Government Code, is amended to read as follows: (c) Training under this section must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio. and compliance with this chapter. SECTION 6. Section 2256.008, Government Code, is amended to read as follows: Sec. 2256.008. INVESTMENT TRAINING; LOCAL GOVERNMENTS. (a) gxcept as provided by Subsection (b), the [+Flee] treasurer, the chief financial officer if the treasurer is not the chief financial officer, and the investment officer of a local government shall: (1) attend at least one training session from an, independent source approved by the governing body of the local government or a designated investment committee advising the investment officer as provided for in the investment policy of the local government and containing at least 10 hours of instruction relating to the treasurer's or officer's responsibilities under this subchapter within 12 months after taking office or assuming duties; and (2) except as _provided bv Subsection (b). attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities under this subchapter from an independent source approved by the governing body of the local government or a designated investment committee advising the investment officer as provided for in the investment policy of the local government. (b) An investina entity created under authority of Section 52(b), Article_III. or Section 59. Article XVI. Texas Constitution. that has contracted with an investment management firm under Section 2256.003(b) and has fewer than five full-time employees or An investina entity that has contracted with another investing entity to invest the entity's funds may satisfy the training requirement provided by Subsection (a)(2) by having an officer of ..✓viewtext.cmd?LEG>76&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIXO3009 10/28/99 38 L 1 , of it nn own cnroueu version - lull 1 ext 3-6 3-7 3-8 3-9 8-10 3-11 3-12 8-13 8-14 8-15 3-16 8-17 s-18 8-19 8-20 8-21 8-22 8-23 tr 8-24 8-25 8-26 8-27 17 9-1 9-2 9-3 9-4 9-5 9-6 9-7 9-8 9-9 9-10 9-11 ' 9-12 9-13 9-14 9-15 9-16 9-17 9-18 9-19 9-20 9-21 9-22 9-23 9-24 .9-25 9-26 9-27 10-1 10-2 10-3 10-4 10-5 10-6 10-7 10-8 10-9 10-10 10-11 10-12 10-13 10-14 10-15 r r viewtext.cmd?LEG=76&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIX=03009 10/28/99 39 the governing body attend four hours of appropriate instruction in a two-year period_ The treasurer or cFii financial officer of an investing entity created under authority of Section 52(b), Article III, or Section 59, Article XVI, Texas Constitution, and that has fewer than fivefull-time emglovees ts_not required to attend training required by this section unless the person is also the investment officer of the entity, (c) Training under this section must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with this chapter. (d) Not later than December 31 each year, each individual, association., business, organization, aovernmental entity, or other person that provides training under this section shall report to the comptroller a list of the governmental entities for which the person provided required training under this section during that calendar year. An individual's reporting requirements under this subsection are satisfied by a report of the individual's employer or the sponsoring or organizing entity of a training program or seminar. SECTION 7. Section 2256.009(a), Government Code, is amended to read as follows: (a) Except as provided by Subsection (b), the following are authorized investments under this subchapter: (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of this state or its agencies and instrumentalities; (3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; (4) other obligations, the principal and interest•of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities; (*AO] (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent; and (6) bonds issued, assumed, or guaranteed b the State of Israel. SECTION 8. Section 2256.014(c), Government Code, is amended to read as follows: (c) An entity is not authorized by this section to: (1) invest in the aggregate more than 15 [84) percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in (memeAreterkee __ mutual funds described in Subsection (b)[. Litho- - et--, _- e --___i l ly], (2) [' [444-) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection (b); or J3) [{44.] invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, ir: _tn, one mutual fund desclived i.; Subsection (a! ex (b) in an amount Li,at exceeds 10 percent of the total assets of the mutual fund. SECTION 9. The heading for Section 2256.015, Government Code, is amended to read as follows: 4 r r re r r r r r r t r r 76(R) HB 3009 Enrolled version - Bill Text 10-16 Sec. 2256.015. AUTHORIZED INVESTMENTS (.F04 37ATE ACCUCFB61. 10-17 GUARANTEED INVESTMENT CONTRACTS. 10-18 SECTION 10. Section 2256.015(a), Government Code, is amended 10-19 to read as follows: 10-20 (a) A guaranteed investment contract is an authorized 10-21 investment (f+_ 5t -- ensies] for bond proceeds under this 10-22 subchapter if the guaranteed investment contract: 10-23 (1) has a defined termination date; 10-24 (2) is secured by obligations described by Section 10-25 2256.009(a)(1), excluding those obligations described by Section 10-26 2256.009(b), in an amount at least equal to the amount of bond 10-27 proceeds invested under the contract; and 11-1 (3) is pledged to the entity and deposited with the 11-2 entity or with a third party selected and approved by the entity. 11-3 SECTION 11. This Act takes effect September 1, 1999. 11-4 SECTION 12. The importance of this legislation and the 11-5 crowded condition of the calendars in both houses create an 11-6 emergency and an imperative public necessity that the 11-7 constitutional rule requiring bills to be read on three several 11-8 days in each house be suspended, and this rule is hereby suspended. President of the Senate Speaker of the House I certify that H.B. No. 3009 was passed by the House on May 11, 1999, by a non -record vote; and that the House concurred in Senate amendments to H.B. No. 3009 on May 28, 1999, by a non -record vote. Chief Clerk of the House I certify that H.B. No. 3009 was passed by the Senate, with amendments, on May 26, 1999, by a viva -voce vote. APPROVED: Date Governor Secretary of the Senate C ..Jviewtcxt.cmd?LEG=76&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIX�3009 10/28/99 40 r c r r 1.. r r r r r 1 1 L-. r r APPENDIX B Attached to and made a pan of the City of Carpus Christi Depository Services Agreement with Frost National Rank approved by City Council on May 13, 1997, in Motion M97-112 AUTHORIZ &TION FOR DEPOSITORY ACCOUNTS As the duly appointed and authorized City Manager of the City of Corpus Christi.1 designate the officers listed below as the Authorized City Representatives of the City of Corpus Christi. The signatures below are the signatures of the Authorized City Representatives vested with full authority to sign and transact business for the City including, but not limited to, Account Transfers, open and close accounts. request reports, or authorize other signatories to specific bank accounts. The signatures of the officers subscribed below are tnu and genuine: Dorothea L. Montrn a City Treasurer Michael P. Harty. Controller Audre Debier. Chief Accountant Mary E. Sullivan. Director of Finance This Authorization for Depository Accounts is entered into in addition to and will not amend, modify. waive, or revoke any of the terms of the City of Corpus Christi Depository Agreement except as expressly provided herein. This authorization is entered into to facilitate the electronic transfer of funds or administration of the services to be provided pursuant to the City of Corpus Christi Depository Agreement. It is not intended to empower Authorized City Representadva to approve or accept amendments. waivers. or new provisions or terns to the Depository Agreement on behalf of the City of Corpus Christi. Authorized City Representatives remain authorized until the Depository receives written notification revoking authorization. TRIS AUTHORIZATION FOR DEPOSITORY ACCOUNTS is effective this 10Th day of Args f 1999 and revokes all previous authorizations. ATTEST: CITY OF CORPUS CHRISTI By By: Armando Chapa. City Secretary Jorge ia. Assistant City Mmaga Approved this day of J 1. 1999 James R. Dray Jr., City Attorney By: *7e..49171 -Ci - Xv`.• d✓ Lisa Aguilar. Assistant City .Attomcy tan000.or4 A9pit W. 1999 41 t E r r IT C r r r r APPENDIX B List of Authorized City Representatives City of Corpus =Christi E.. r r L r r L' r c r r f tt r r r APPENDIX C City's Code of Ethics Ordinance tellease City of C°rPus is r r t c r C c r r. r r tT APPENDIX C CORPUS CHRISTI CODE OF ORDINANCES CHAPTER 2, ARTICLE V, CODE OF ETHICS' *Editor's note—Ord. No. 20781. § I. adopted Sept, 19. 1989. amended Art. Vin its entirety to read as herein set out. Prior to inclusion of said ordinance, Art. V. §§ 2-311-2-321 2.351--2-357, pertained to similar subject matter and derived from Ord. No. 17112. § 1(1)-03), adopted July 7. 1982: ()rd. No. 17234. a 1(A). (8), (D)4F). adopted Sept. I. 1982; Ord. No. 17287. § 1. adopted Oct. 6. 1982; Ord. No. 17399, § 1, adopted Dec. 15, 1982; Ord. No. 17476, § 1, adopted Feb. 16. i 983; Ord. No. 20637. § 2. adopted March 28, 1989 and Ord. No. 20631. § 1, adopted April 23, 1989. DIVISION I. RULES OF CONDUCT See. 2-311. Standards. The follow ine rules of conduct apply to all council members. board members. and employees: Special privileges. Gilts: (1) You shall not use your office for private advancement or gain or to secure special privileges or exemptions for yourself or others. (2) You shall not grant any special consideration. treaunent or advantage' to any person or group beyond that which is available to others generally. (3) You shall not use city facilities, personnel. equipment or supplies for purposes unrelated to the interests of the city, except to the extent such are lawfully available to the public. (4) Unless you are a council member. you shall not use the prestige of your position with the city on behalf of any political party or cause. (5) You shall not accept or solicit any money, property, service or other thing of value by way of gill favor, loan or otherwise that might reasonably tend to influence you in the discharge of your official duties or which you know or should have known was otTered with thc intent to influence or reward your official conduct. (6) In the event you receive any gift or loan of property or services on behalf of the city, you shall promptly deliver such gift or loan to the city manager for official acceptance and inventory of thc city. Conflicts of interest: (7) In the event you or one of your relatives hate an interest or any substantial 42 r t_ r l-. L. r r r r r t. r f r interest in a contract or transaction involving the city which comes before you in the performance of your official duties, you shall make a written disclosure of your interest in the matter and abstain from any vote or decision and not participate in any discussion on the matter. (8) You shall not engage in any outside activities or employment which will conflict or be incompatible with the full and proper discharge of your official duties, impair your independent judgment in the performance of your duties, or reflect discredit upon the city. (9) You shall not represent any other private person, or group or interest in any action or proceeding against or adverse to the interest of the city or in any litigation in which the city is a party. (10) You shall not represent any other private person or group in any action or proceeding in the municipal courts of the city which was instituted by city officers or employees in the course of their official duties. (11) You shall not receive any fee or compensation for your official services from any source other than the city except as may be provided by law or authorized by the city council. Actions adverse to the city: (12) You shall not disclose information that could adversely affect the property or affairs of the city. (13) You shall not knowingly perform or refuse to perform any act in order to deliberately thwart the execution of federal, state or local laws or regulations or the achievement of any official city programs. (14) You shall not engage in any felony crime, misdemeanor involving moral turpitude, or other conduct that reflects discredit on the city. Provisions for council members: (15) As a council member, you shall not have a substantial interest in any contract with the city. (16) In order to preserve and promote independent advice and decisions from city boards and the integrity of the independent board process as a council member, you shall not speak before any city board, commission or committee except on behalf of your own financial interest; in which case, you shall publicly state the nature of your financial interest and that you are appearing only in your private capacity. (17) As a council member, you shall not give any orders to any employee except 43 through the city manager as provided by the city charter. Provisions for board members: (18) As a board member, you shall not have a substantial interest in any contract with the city in which your board or commission, or the city department related thereto, has jurisdiction. (19) As a board member, you shall not represent or appear on behalf of the private interest of others before your board, commission or committee, the city council, or any board which has appellate jurisdiction over your board, commission or committee, concerning a matter which is within the subject matter jurisdiction of your board. (This rule does not prohibit you from appearing on behalf of your own financial interest even though others may have the same or a similar interest.) Provisions for employees: (20) As an employee you shall not have an interest in any contract with the city. (21) As an employee, you shall not, within twelve (12) months after leaving city employment, represent any other person or organization in any formal or informal appearance with the city council or any other agency or employee of the city concerning a project for which you had responsibility as an employee. (22) As an employee, you shall not represent or appear on behalf of the private interest of others before the city council or any board, commission or committee of the city. (This rule does not prohibit you from appearing on behalf of your own financial interest even though others may have the same or a similar interest). (Ord. No. 20781, § 1, 9-19-89; Ord. No. 20913, § 1, 5-1-90) Sec. 2-312. Definitions. The following definitions apply to the above rules of conduct: Board member. A member of any board, commission or committee of the city, including the board of any corporation created by the city. Employee: Any person employed by the city, whether under civil service or not, including part-time employees and employees of any corporation created by the city. Interest: Any direct or indirect pecuniary or material benefit in a contract or transaction other than: (1) An interest which is shared by and available to all other persons similarly situated; or (2) A remote or incidental interest which would not increase or decrease materially 44 due to the action of the city or is less than two hundred dollars ($200.00) in value; or (3) An interest of a subcontractor which has no direct contractual relationship with the city, is receiving fair and reasonable compensation, and is not operating as a subterfuge to circumvent the code of ethics; or (4) An interest in real property acquired by the city which could otherwise be accomplished only through eminent domain provided that the property must be acquired for a public purpose and just compensation must be paid under the Texas Constitution after obtaining an independent appraisal. Substantial interest: Any interest which has a value of five thousand dollars ($5,000.00) or more or represents ten (10) per cent or more of a person's gross income during the most recent calendar year. Relative: Spouse, father, mother, brother, sister, son, daughter, spouse's children, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law and adoptive relationships being treated the same as natural relationships. (Ord. No. 20781, § 1, 9-19-89) See. 2-313. Effect of violation. A violation of these rules of conduct shall subject the council member, board member or employee to appropriate disciplinary proceedings, but such violation shall not render the action of the city voidable by the city unless the action would not have been approved without the vote of the person who violated the rules of conduct. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-314. Exceptions to abstention requirement. The requirement that a council member or board member abstain from voting on a matter or participating in discussion as contained in rule 7 of the rules of conduct shall not apply in the following situations, provided that such person has complied with the requirements of written disclosure of the interest: (a) In the event a majority of the members of the council or the board, commission or committee have filed a written disclosure of a conflict of interest on the matter and would be required to abstain; or (b) On the final approval of the budget when the person has abstained from a separate vote taken on the particular budget item pertaining to the conflict of interest and action or that particular item has been resolved. 45 r r E r C_ r 4_ 1. r r (Ord. No. 20781, § 1, 9-19-89) Cross reference(s)—Rules of conduct, § 2-311. Sec. 2-315. Freedom of expression. Nothing contained in the code of ethics shall abridge the right of any citizen, whether or not a council member, board member or employee, to exercise his or her right of expression under the U.S. or Texas Constitutions. (Ord. No. 20781, § 1, 9-19-89) Sep. 2-316-2-319. Reserved. DIVISION 2. ETHICS COMMISSION Sec. 2-320. Establishment. An ethics commission is created and shall consist of nine (9) members. The city council shall solicit nominations for the ethics commission from a wide variety of professional and community organizations in the city. Interested individuals may also submit their names for consideration. Members of the commission may not hold or be a candidate for any city elected or appointed office. The city council shall appoint the members of the ethics commission by a two-thirds (2/3) vote of the full council. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-321. Terms. Members shall hold office for three-year terms commencing October 1. In order to establish staggered terms, however, the initial terms of three (3) members shall be one year, and the initial terms of another three (3) members shall be two (2) years. The persons serving such shorter terms shall be determined by lot. No holding over is permitted except as expressly provided in this code of ethics. (Ord. No. 20781, § 1, 9-19-89) See. 2-322. RemovaL In addition to the council's usual powers of removal, members of the commission may be removed by a majority of the council for cause. In considering a complaint filed with the city secretary or on its own initiative, the council may follow the procedures hereinafter set forth regarding the disposition of such alleged violations. (Ord. No. 20781, § 1, 9-19-89) See. 2-323. Vacancies. 46 All vacancies shall be filled for the unexpired terms. A member shall hold office until his successor has been appointed, and shall continue to hold office after his successor has been appointed for the limited purpose of disposition of all complaints filed and for which presentation of evidence was commenced during that member's term. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-324. Chairperson; quorum. The commission shall elect a chairperson and a vice -chairperson. The vice -chairperson shall act as chairperson in the absence of the chairperson or in the event of a vacancy in that position. The officers of the commission shall serve one-year terms. A majority of the members of the commission shall constitute a quorum. (Ord. No. 20781, § I, 9-19-89) Sec. 2-325. Meetings. The commission shall have such meetings as may be necessary to fulfill its responsibilities. The chairperson or any three (3) members may call a meeting provided that reasonable notice is given to each member. The commission shall comply with the Texas Open Meetings Act. (Ord. No. 20781, § 1, 9-19-89) Sea 2-326. Duties. (a) The commission shall, in addition to its other duties: (1) Prepare and publish pamphlets and other materials explaining the duties of individuals subject to the code of ethics. Such materials shall include instructions to the public about how to obtain information such as financial disclosures, campaign reports, and the like from the city. (2) Review all statements and reports filed with the city. (3) Annually review the code of ethics and make appropriate recommendations to the city council after conducting a public hearing on any such recommendations. (4) Review all public opinions related to the code of ethics that are issued by the city attorney. (5) Prepare and disseminate a report listing all campaign contributions and expenditures for each candidate within thirty (30) days following the deadline for Sling the last campaign finance reports for each city council election. For the purposes of this provision, a general election and run-off election shall be considered as a single city council election. 47 r. r r r 4_ r r r r r r r r t r (b) The commission may: (1) Adopt rules of procedure for the conduct of its business and to carry out the provisions of the code of ethics, consistent with the code of ethics and other applicable law. (2) Prepare reports and studies to advance the purposes of the code of ethics. (3) Request the city council and city manager to provide such assistance as it may require in the discharge of his duties. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-327. Staffing. The commission shall be assigned staff by the city attorney to assist in its duties. The commission shall also designate independent legal counsel, and when complaints are filed, such independent legal counsel may be utilized to advise the commission and participate in hearings. (Ord. No. 20781, § I, 9-19-89) Sec. 2-328. Legal opinions and services. (a) Any council member, employee or board member may submit a written request to the city manager for an opinion concerning the meaning or effect of any section, word or requirement of the code of ethics as it affects such official, employee or board member. The city manager shall submit such request to the city attorney, who will promptly issue a written opinion to the city manager. Such opinion shall be filed with the city secretary with a copy to the requesting person shall constitute an authoritative determination of the meaning of this article, until amended by the council. (b) If a complaint is filed with the ethics commission about any specific action, omission or alleged conflict of interest by the charged person which has been the subject, in whole or in part, of a city attorney's opinion, the independent legal counsel shall act as the commission's attorney on said complaint. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-329. Jurisdiction of commission. The ethics commission shall have jurisdiction of complaints involving any "city official" which includes the mayor and members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, department heads, and municipal court judges (including substitute judges), and all members of any board, commission or committee of the city, including the board of any corporation created by the city. (Ord. No. 20781, § 1, 9-19-89) 48 r r L.� r r r r r l". r r {. . lam. t r Sec. 2-330. Complaints. (a) A sworn complaint alleging violation of the code of ethics shall specify the provisions of the rules of conduct alleged to have been violated and facts alleged to constitute the violation. (b) Upon the sworn complaint of any five (5) people filed with the city secretary's office, the commission shall consider possible violations of the code of ethics by city officials and board members and former city officials and board members other than members of this commission. In addition, the commission shall consider such possible violations when referred to it as a complaint by majority vote of all council members holding office and qualified to vote thereon. The council may direct the city attorney to draft such referred complaint, which shall be reviewed as other complaints hereunder. The council members voting for the complaint shall sign the complaint. (c) A complaint alleging a violation must be filed with the city secretary within six (6) months from the date the complainants knew or should have known of the action alleged as a violation, and not afterward. (d) Not later than three (3) working days after the city secretary receives a sworn complaint, he or she shall acknowledge receipt to the complainants, and provide a copy to the city attorney, the commission and the person complained against. Not later than thirty (30) days after receipt of a complaint by the city secretary, the commission shall notify in writing the persons who made the complaint and the person complained against whether it intends to schedule a hearing or take other action concerning the complaint. The person complained against shall have ten (10) days to submit a written response to the complaint prior to the commission deciding whether to hold a hearing. The complainants shall have one opportunity within fifteen (15) days of any denial of their original complaint by the commission to amend their complaint and refile the same with the commission. (e) Legal fees incurred by the complainants, the commission, and the party complained against, in an amount determined reasonable by the commission, shall be paid by the unsuccessful party if the commission determines such party's complaint or defense was groundless. "Groundless" means (1) without basis or fact, or (2) not warranted by law or reasonably arguable interpretation thereof. The complainants shall not be liable for such fees if the commission has determined grounds exist for a hearing. (Ord. No. 20781, § 1, 9-19-89; Ord. No. 20896, § 1, 3-27-90) See. 2-331. Ex parte communications. After a complaint has been filed and during the pendency of a complaint before the commission, a member of the commission may not communicate directly or indirectly with any party or person about any issue of fact or law regarding the complaint, except at a meeting of the commission. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-332. Hearing. 49 r r. r r r E r (. r r 1. r r (a) The hearing shall be held as expeditiously as possible following the determination by the commission to conduct a hearing on a particular matter. The commission may grant two (2) postponements, not to exceed fifteen (15) days each, upon the request of the person complained against; provided, however, the commission may also delay commencement of a hearing for good cause such as a hurricane or unavailability of a material witness. (b) The issue at hearing shall be whether the violation alleged in the complaint occurred. The commission shall make its determination based on the preponderance of credible evidence in the record. All witnesses shall testify under oath. Strict rules of evidence shall not be required; however, the commission shall require that all evidence be of such quality that persons customarily rely on in the conduct of serious affairs. If the commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provisions which have been violated, and within five (5) working days shall deliver a copy of the findings to the complainants, the person complained against, and the city secretary. (Ord. No. 20781, § I, 9-19-89) Sec. 2-333. Oaths. If a complaint proceeds to hearing, the commission may subpoena witnesses to attend and testify, administer oaths, take evidence and subpoena the production of books, papers, records or other evidence needed for the performance of the commission's duties or exercise its powers, including its duties and powers of investigation. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-334. Sanctions. (a) If the commission determines that a violation occurred, it shall proceed directly to determine its recommendation of appropriate sanctions. The affirmative vote of a majority of the members holding office and qualified to vote shall be required for the determination that a violation has occurred and the recommendation any sanction under this code of ethics. The commission may receive additional testimony or statements before considering sanctions, but is not required to do so. (b) If the commission determines that a violation has occurred, it may recommend the following: (1) (2) Against a council member or against a board member or city official appointed or confirmed by the council, reprimand, temporary suspension, removal or any other sanction or corrective action within the power of the city council, or recall by the citizens. Against a city official other than those in (1), that appropriate action be taken, as deemed necessary by the city manager. (c) In determining its recommendation, the commission shall consider the seriousness of 50 n L_ 1 ". f r c i r the violation, the importance of deterrence, the impact on public confidence in government, the violations' repeated or isolated nature, the mental state with which the violation was committed, and the prior record of the person complained against. The recommendation shall be reduced to writing and transmitted to the supervisory authority and to the person complained against. (d) If the commission finds that conduct occurred which, if willful, would violate the rules of conduct, but the commission cannot determine that the conduct was a willful violation because of ambiguity as to the meaning of the standard of conduct involved, the commission will recommend no sanction, but will issue a clarifying interpretation to guide future cases. (e) Nothing in the code of ethics shall change or affect the civil service, at will, or other status of any employee, city official, or board member as established by the city charter and ordinances. (0 The city council or supervisory authority shall consider the recommendation of the commission, but will exercise its own judgment and discretion in determining what action, if any, to take. (g) If the commission determines that a violation of any criminal law has occurred, it shall deliver a copy of its findings to the complainants, the person complained against, and the city attorney, recommending whether prosecution should be initiated or setting forth requirements to be complied with in order that voluntary compliance requirements may be had. Said findings shall also be delivered to the county attorney or district attorney, if a violation may be within their jurisdiction. (Ord. No. 20781, § 1, 9-19-89) Secs. 2-335-2-339. Reserved. DIVISION 3. FINANCIAL DISCLOSURE Sec. 2-340. Required reports. On or before the last Friday of April of each year, reporting officials shall file with the city secretary an annual report of financial information covering January 1 through December 31 of the previous year. Council members and planning commission members shall also file with the city secretary a supplemental report of financial information by the last Friday of July of each year covering the most recent January 1 through June 30. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-341. Definitions. The following definitions shall apply to these financial disclosure provisions: Person: An individual, proprietorship, firm, partnership, joint venture, syndicate, trust, company, corporation, association, committee, estate, receiver, entity or any other organization 51 r. r r r r r r r C". t, 1. r r C or group of persons acting in concert, whether profit or nonprofit. Relative: Spouse, father, mother, brother, sister, son, daughter, spouse's children, grandfather, son-in-law, daughter-in-law, grandmother, uncle, aunt, nephew, niece, grandson, granddaughter, first cousin, father-in-law, mother-in-law, brother-in-law, sister-in-law, grandfather -in-law, grandmother -in-law, uncle by marriage, aunt by marriage, nephew's wife, niece's husband, grandson -in-law, granddaughter -in-law, and first cousin's spouse, adoptive relationships being treated the same as natural relationships. Reporting official: The mayor and members of the city council, city manager, deputy and assistant city manager, city secretary, city attomey, department heads, municipal court judges (including substitute judges), and all members of the planning commission, ethics commission, civil service board, civil service commission, Corpus Christi Health Facilities Development Corporation, Corpus Christi Housing Finance Corporation, Corpus Christi Housing Improvement Corporation, Corpus Christi Industrial Development Corporation and the attorney who serves as local issuer's counsel for and any executive employee hired by the above corporations. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-342. Content of reports. The reports required shall contain the following information for the reporting period by separate listing. In this section, the report for the reporting official shall include all such information for the reporting official's spouse, but information relating to the spouse need not be segregated from that relating to the reporting official. (a) Name and residence address. (b) All professional, occupational, business licenses held by the reporting official. (c) The names of any businesses with which the reporting official was actively engaged or associated, and the principal address and phone number of each, together with the position or title held. (This list should not include interests in or positions with any businesses which are required to be reported in other provisions of this section.) (d) The names and addresses of all sources of income which exceed ten (10) per cent of the reporting official's gross income, or five thousand dollars ($5,000.00) in salary, bonuses, commissions or professional fees, or twenty thousand dollars ($20,000.00) in payment for goods, products or non-professional services. If the reporting official is self. employed or owns or controls at least a twenty (20) per cent interest in a partnership, corporation or other entity through which the reporting official does business, the reporting official shall also report the names and addresses of the clients or customers who do business with the city from whom the reporting official, partnership, corporation or other entity received at least ten (10) per cent of its gross income. Prior to each reporting deadline, the city shall publish a list of the names and addresses of the persons who do business 52 with the city in the amount of ten thousand dollars or more each year (excluding utility services or the payment of taxes) which reporting officials may rely upon for the purposes of complying with this provision. A reporting official operating a business as a sole proprietor shall not be required to report a client or customer under this subsection he or she would not have to report if operating as a corporation or partnership. (e) The names and addresses of all corporations, partnerships or other business organizations in which the reporting official held, owned, acquired or sold stock or other equity ownership having a value exceeding five thousand dollars ($5,000.00) or equivalent to ten (10) per cent or more of the stock or equity in the entity. (f) An itemized list of all real property in Nueces County or any adjoining county in which the reporting official held any legal or equitable ownership with a fair market value of two thousand five hundred dollars ($2500.00) or more, The list shall include a description sufficient to locate the property. (g) The name and address of any person to whom the reporting official was indebted in excess of ten thousand dollars ($10,000.00) together with the dates any such debts were incurred. "Indebted" includes obligations on which the reporting official is a guarantor or co-signer, in which case the names of the borrower and lender shall be listed. (h) The name and address of any person who is an obligor on any note, bond, loan or any other similar obligation, written or unwritten, owed to the reporting official which in the aggregate equal ten thousand dollars ($10,000.00) or more together with the dates of such obligations. (i) All boards of directors or governing bodies of which the reporting official is a member, and all offices or executive positions the reporting official holds in corporations, partnerships, limited partnerships, professional corporations, associations, or other entities, including non -business and non-profit entities, stating the name of each entity and position held, and excluding entities owned or created by the city. jj) The names and addresses of all persons from whom the reporting official received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities or services, cumulatively exceeding two hundred dollars ($200.00) in value. The nature and date of each gift received shall be specified. Provided, however, campaign contributions reported as required by state law and gifts or favors from relatives need not be reported hereunder. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-343. Financial disclosure by candidates. All candidates for city council shall file an annual report of financial infonnation covering January 1 through December 31 of the previous year containing the information required by the above sections with the city secretary within five days after filing for office. If the deadline for candidate filing is after June 30, they shall also file a supplemental report of 53 C 4_ f r r. 4. r t r r financial information. If any incumbent candidate has previously filed a report for the appropriate period(s), that report shall satisfy this section. (Ord. No. 20781, § 1, 9-19-89) Sec 2-344. Reports to be sworn and maintained. All reports of financial information required by the code of ethics shall be sworn, and shall be preserved for -five (5) years as public records. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-345. Filing dates for reports. Reports required by this division must be physically filed with the city secretary by 4:45 p.m. on the day required for filing. When the day falls on an official city holiday as established by the city council, the deadline for receipt by the city secretary is extended to 4:45 p.m. of the next day which is not a Saturday or Sunday or official city holiday. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-346. Failure to ffie report. The failure of a reporting official or employee to file a true and accurate report as required under this code of ethics shall constitute a violation of the rules of conduct. Failure to timely file a report by a member of the planting or ethics commission or the civil service board/commission shall constitute forfeiture of the office. Such forfeiture shall be automatic and immediate, except if state law requires a hearing, the forfeiture shall occur immediately upon a council determination of timely failure to file. In the event a person who has failed to file a required report no longer serves in an official capacity with the city, that person shall be barred from serving as an appointed officer, board member or employee of the city in the future until the required report has been filed (Ord. No. 20781, § 1, 9-19-89; Ord. No. 21195, § 1, 7-16-91) Sec. 2-347. Voluntary reports. Any city official, employee, or board member may file reports exceeding the requirements of the code of ethics, and said reports shall be preserved in the same manner as required reports. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-348. Disclosure of gifts by employees. Any employee of the city other than reporting officials, whether under civil service or not, who received gifts or favors, including but not limited to trips, excursions, food, lodging, money, commodities, or services, cumulatively exceeding two hundred dollars (5200.00) in value in any calendar year, from any person (other than a relative) whose name is published in the list of persons doing business with the city under section 2-342(d), shall file a report of the 54 1. r r r r r r r r r r r. r r r names and addresses of such persons and the date and nature of each gift with the city secretary. The deadline for filing such reports shall be February 1 of each year, provided that, such a separate report shall not be required for any employee who is required to file a report as a reporting official. (Ord. No. 20781, § 1, 9-19-89) Sec. 2-349. Disclosure of interests by contractors. (a) Any business desiring city council, board, commission or committee consideration or action concerning that business (other than granting an electrician license, solicitation permit and approving a plat) shall, prior to its placement as an agenda item on the public notice of such body, file with the city (and if a vendor, file with the city's purchasing agent) a statement specifically naming any city employee, official and board member having an ownership interest in the business constituting three (3) per cent or more of the ownership, or having any pecuniary interest in the transaction or property which is the subject of consideration or action. (b) In the case of any business desiring to sell goods or services to the city (except when the value of the goods or services is not reasonably anticipated to exceed one hundred dollars (5100.00) per calendar year), but which does not require city council, board, commission or committee consideration or action, the business shall file with the city's purchasing agent a statement specifically naming any city employee, official and board member having any ownership into best in the business constituting three (3) per cent or more of the ownership, or having any pecuniary interest in the transaction. This provision does not apply to or include the purchase of magazine subscriptions and memberships in professional or trade organizations related to municipal operations. (c) For corporate businesses whose shares are publicly traded and listed on recognized national or regional stock exchanges or over-the-counter markets, it shall be sufficient if a current Securities and Exchange Commission Form 10-K is filed in lieu of the statements required by this section. (Ord. No. 20781, § 1, 9-19-89) 55 r r r C.: r r r r r r. r r t C AN ORDINANCE AMENDING THE CORPUS CHRISTI CODE OF ETHICS TO ENACT A PREAMBLE, TO PROHIBIT PARTICIPATION IN APPOINTMENTS OF CERTAIN PERSONS TO CERTAIN ENTITIES, TO PROVIDE FOR LOBBYIST REGISTRATION, AND TO MODIFY THE ATTORNEY FEES PROVISION; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PENALTIES FOR VIOLATION OF SECTION 2-316. WHEREAS, the City's Ethics Commission has recommended certain changes to the City Code of Ethics. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Chapter 2 of the Code of Ordinances of the City of Corpus Christi is hereby amended by adding to Article V, Division 1, a new Section 2-310, Preamble, to read as follows: Se2.2-310. Preamble. .• 1• The purpose of this Code of Ethics is to promotepublic trust by establishing rules of • • 1 11 • I • F • • • l• 11 911 p91. • 1 • -111 • • - y. • • • p I • • 1 • •1(h - • In 411. :1• :• • •• •11 • : 1 .11 • l-0 •i• •..11•• 1:1 l 11 • -1, 1 • 1 • • • 11 , • : - 1 • • • • 1 1 1 1 • 1• : l 1 -it et • -11 • - • • -0 • - 1 1 • l• •,y 1 1 • • 1%. 1 • - • 1 • 11 1 • 11 • 11 • 1 • yp.. 1 • 1 rules and carry out their responsibilities consistently with the rules. It is recognized that • 1 • 1 11 911 •.-Ip • • . a• 11 - 11 0.y1. 1 • - 11 • 1 M . •- - 1 1 Y• • 91 • -[ • 1 11 1 • Ilia ideal of the public trust and to conduct themselves in a manner to avoid the appearance of imnron y even where not com lne led by the ilea_. SECTION 2. Chapter 2 of the Code of Ordinances of the City of Corpus Christi is hereby amended by adding to Article V, Division 1, Section 2-311, a new subsection (17.1) to read as follows: (17.11 As a council member you shall not particinate in the pmcrss for thcsppointment of or the confirmation of the appointment of a member to a board commission or committee of the cityor to the onveminu body of an independent entity all or part 9JRB0230.232 (l)is related to you within a degree described by Section 573 002_ Texas C23772 56 r r r r r r r' I r Govemment Code. (2) isyouur employer' (3) is a director or officer of a business entity (as defined in Section 171.001 Tex” Local Government Code) which is your emnlover: or • 1.41 114-4 -1 • 111C • 1- •1,• • . • 1•l • • • 1 -11• .1 1 is your employer SECTION 3. Chapter 2 of the Code of Ordinances of the City of Corpus Christi is hereby amended by adding to Article V, Division 1, a new Section 2-316, Lobbyist Registration, to read as follows: Sec. 2-316. I ohbyigtikegistration, (Subsection A Persons Required to Regjurr as Lobbyists •,.,1, . 11 '1 1 111 l • 11 •• 1 1 • n l-1 : • .I 1 l -w ..nM to any client. the person engages in lobbying activities for comnensation, (31 The following persons are not revised to register under subsection (y); (11 Media Outlets. 4 person who owns_ publishes or is employed by; 00.1 a newspsper- ailAUX_QIhrangulikatzukalhailthildirat (Cl a radio station (D1 a television station: (E) a wire service: or a:1 • 1. •.11: 1• 1 .6 11n• 11 11 • • 1:1k • 3. • • -1 " disseminates newsopinions, or paid advertisements that directly or indirectly 1 • •.• - • • n 11 • 11 1 • : • -n. " 1 1 1 •-, • - • - • • N - • 1 relating thereto" if the person does not engage in other activities that require registration under Part E. This Subsection does not exempt the news mem pr a person whose relation to the news media is only incidental to a lobbying • i1•l • . ..• '•,• , • .• • . • • : .5 ,•" • affectsor seeks to influence a municipal question in which the media outlet has a direct or indirect economic interest • •I•• 1 1 • •1 • - 1 . •.-11:•1 19 •1 ••. ,• courage or solicit the members employees or owners (including shareholders) of :1 1 •' • .1111 1 h 1.11 111 •. I • . • •1111 1 * In 111 1 more citv officials to influence municipal questions. This exception is intended to 9JR30230.232 :to • 1 . 1 • • 1 • • • • • • , 11 • It _ • -. l• • • 1• • 1 57 c c C r r E r A l r -1111-1 1 - 11 '1110-1 -1 - _1• /- • - • 1 1 - 11 1 . 99• provided the communications relate solely to subiects of governmental interest concerning the respective governmental bodies and the city, (4) Unknown Municipal Ouestions k person who does not know and has no reason to know that a municipal question k pending at the time of contact with a city pf ciaL (51 Disnute Resolnion. 4n attorney or other nerson whose contact with a city •i1 . 11•• • : H 11 1 • • 1 - 11 1 1 1 • R• • I • 1 11 • • • 1 • 1 • U - • 1• • 4,02 of the Texas Discipli a R Il s of Profession I and Ict. c mended. Subsection R nefinition _ The following words and phrases have the meaning ascribed to thein in this section unless the cnntevtrequires otherwise. (al City official means the members of the city council city manager. deputy and assistant . 11 • : • 91. . -. a • 1 • •• '• Y.= I . • 1 • 11 1 9•r: 111• 1 I .- • municipal court iudaes. and all members of any board_ commission or committee of the city, including the hoard of any corporation created by the city. (bl f'lient means anv person on whose behalf lobhyjnia,is conducted. In the case of a coalition or association that employs or retains other persons to conduct lobbying activitiey -11 •- •. 11 1 1. • 11 • 1• 10 •• • • 11' 111- r` fel ('o pensation means moneyservice facility or other thing of value or financial benefit that is received or is to be received in return for or in connection with services rendered or to be rendered Compensation does not include a payment made to any individual regularly 9111 • 1 31 •1 : 691..1 I 1 • : All 9• • 13 1 : • 11 • - • • .. `1. 1 • • 1 1 • • • .1 1• w 1 • 6 11 .• t9•.l• - • .11919 1 1 • • 1 • • 1 • f 1 • •:p • 1 1,4 I, 1914 • 1T11411 • '. • • 1.91.•1 11 :. •. 1 • 11.1 • 11 6 • 11 • • -1: Apt include the financial gain that a person may reJli7e ns a result of the determination of a II I •: I ', 11 1 - 1• • 1 1 • 1 111 1 1 1 1•- 1 (d) Lobby or lobbyin means nv oral er written communication (including an electronic 1 11 -01 1 •.ep 1 1 1 1 , 1 1 • 1 1161 ", H 1 11 It 9t • • • • .n • 11 I1 11 1 or against. or take or refrain from taking action on anv municinal Question. The term lobby or lobbying does not include a communication; 9JRB0230.232 58 C [' C r C r 1. r r l_ 4 r r r r r f 11 merely rcguesting information or inquiring about the facts or status of any municipal question matter. or procedure. and not attempting to influence a city official: (2) made by a public official or employee acting in his or her official capacity; 11.1 1 • • t 1 - • 11 - • Ili • 6, • - • P • - • •1111 1 •••1 . 1-l1• •I• • -11 1.• 1' 1 .F •11 1 •Ill• • 11 • • . I • • -I • • n - • • o I 1 1 1 -1 II • 91 : 1 1 t!I • 616 • • • 11 : • • . • - • 1 • • • 1 11 • I Y• •. • - -11 1 1 • • other medium of masa communication; • 1 • • 1 or any other communication that is made on the record in a public pmcceding• 1 ll :. - • al l l • • • ..4 1 ▪ . , • • ll • • . , : 1 • la• b1. • •( • • 1 b1 • 11 pursuant to established city procedures; fill made in writing to provide information in response to an oral or written request by a ci _official for specific information: (91 the content of which is compelled by law; 1 I1 ..•- l 1-P •.• I . • . • • 1 • 1' • 11 11 1 • 1 I 1111 1• 1 gni directed to the official specifically designated in the notice to receive such commcnmm 11�iCffil�: (11l made on behalf of an individual with regard to that individual's employment or (12e by a fact witness or expert witness at an official proceeding_ or (131 made by a person solely pn behalf of that individualhis or her spouse. or his or kr minor children, fel Municipal question means a public policy issue of a discretionary nature pendia¢ or impending before city connril or any hoard or commissionincluding, hut not limited to 0/11 1 • - • - 1 • 1 1 No • • I • 1 1 I 1 • 111 . • a• 1 : 1 t- • 1 1111.1 lRY• II II •11 • : 1 . 1 FI•.. ll 1-0V •.1 . 1 • • 61t 1 • 11 1 : 1 • , ' • ..J 1 111 • 1 . I . • 1 • •- 1 .- 1 • 1 :.. • .• • 1'-1 •1 0 1' • .f (1 •1: I' • • 11t:. NI -11.1 tj picipal question does not include the day-to-day application _administration or execution of city programs and policies. Szhsection t Rectration. cal A registration form shall he completed and filed by a nerson required to resister prior to 1 • 11 II - 1 II 1 0 1 • • 1 • • l • . • : P t • 1/11 1 1 • 1I I 11 1. `1• • 1 - 1 11 1-1• lots • 1 1 •. 1 1 1.11.1 Is 40 1 e l I• •I• 1 t p extent applicable; 9JRB0230.232 59 L C r E E r r r r 4 r i� r r r, (11 the full name. phone number. permanent address and nature of the business of (Al the registrant Mit client (Cl any_ lobbying firm for which the itmns� t is_an oa_eTt or employee with respect to the client: and 1 - 11 . . - - . - , . , - - (2) a statement of all municipal Questions an which the registrant will lobby for the client. 1 . 1 V Yat:. 1.• • 1 • 11 1 . i. . L Ir. 1 . 1 1 - 1 . 441 . • 1 . 1 1 - . 1 1 .\-11 ruisration changes_ or is incorrect. C• SV1 11• -• Ill•• 611 1' Y .1.111• 11•- 1. 44 l(•Y-. SECTION 4. Chapter 2 of the Code of Ordinances of the City of Corpus Christi is hereby amended by amending subsection (e) of Section 2-330, of Division 2, Article V, to read as follows: (e) 1 • 11 11 v . 1 . .011 • 1 -f: Y , .:.t ' . 11 . % I . • • •r. - •in 1 . :,. Siegal fees incurred by the complainants, the cormission, and the party complained against, in an amount determined reasonable by the commission s(tali-be-paiel* may he awarded against the unsuccessful party. g.,,,....11., "Groundless" means (1) without basis or fact, or (2) not warranted by law or reasonably arguable interpretation thereof. The complainants shall not be liable for such fees if the commission has determined grounds exist for a hearing. SECTION 5. A violation of Section 2-316 of the City Code shall be punishable as provided in Section 1-6 of the City Code. SECTION 6. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 7. If for any reason any section, paragraph. subdivision, clause, phrase, word or provision of this resolution shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction. it shall not affect any other section, paragraph, subdivision. clause. phrases, word or provision of this resolution. It is the definite intent of this City Council that every section, paragraph. subdivision. clause, phrase. word or provision hereof be given full force and effect for its purpose. 9JRB0230.232 60 Maybe Foregoi g ordinance was read for the first time and passed to its second reading on this the I ay of GY1 99, by the following vote: Samuel L. Neal, Jr. Javier D. Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales That of Rex A. Kinnison Betty Jean Longoria John Longoria Mark Scott ce was read for the second time and passed finally on this the day , 1999. by the following vote: Cin tg . Rex A. Kinnison Samuel L. Neal, Jr. Javier D. Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales PASSED AND APPROVED, this the rf'{ Sday of Betty Jean Longoria John Longoria Mark Scott ATTEST: Armando Chapa City Secretary APPROVED: 9 DAY OF 1999. Matsu- Athavi Samuel L. Neal, Jr. Mayor, The City of Corp Christi James R. Bray, Jr., City Attorney 9JRB0230.232 023772 61 APPENDIX D City's Indemnification Ordinance WigCity of Corpus �.w Christi APPENDIX D PCNNEL 1 311. 111 aria" tweapdve 471 or men ran of crautabls ail for wmea he is malt a amt in the Teas Y-asai Smuts Systla sad wile as been a near d the eyes bar tae yes or mart sail be table for ea ra s a; a pnsisi is ssoaeeaiea 103). Susan VQ of Arias 6a43b. Va s Tam aril Stases. as eseisi Any ear's ssislea wise shall have autumnal Wear (20) yes or men of asdilabie sena as a eaaieya of said sty .hsii anis a ea a aim of Tawas M aiaaei Raimo Sam darpate sehsserm abeam bear sena far a mei in ea of SSW (60) meetha pnvided he doe not withdraw itis deaaaia aria .sea alreeea and alai be ache for rsaaat upon ami alter taientent— of the watana ea pnea.bad by the Aa Lan aeatiaosi. (OS. Nt 12.21L i 1.1.11•'S1 game ea Ood. Na Is is anal. MR e.a aaaeiaawr of %SCRS/. ass awn nisi a t S a nee Sime ea Sea 31.13. Leal defaa ter laraaraOwaa of offs Caw ea eeahtsaaa (a) Ddhtiesaa Per the arms d this sera the to "of& a" alma lava say sial seapstaedandel dam ter sea aha ten "aaaieyw" rail bride all sepias d the day. near ands tarn arta e tar. tm sling Ars tai Pala an and than bands amhatal alesra workbag ends a wawa pseRam a pteaei by the ay maeaaea (b) tadsaiffeasa Any teas er a saisyw wise is liable ter the Payee d any atm or Sawa awing ea of the nems ad ansa of entarsma wall be tended a imishathasien ey the aay peradel that the as s maim neaiata; m sea Malty an Was as gent ffiah ad wan maiidea sr Mat. ea ham rotas papas dthin tsar. the term "arias on d the eta and emp d alllgmai^ shell nee wiade ay alta wile sea sista peeiei hates is whish the eaten teaph s a aeaapd is tads rephas s sr is lenient COOP anal was a sera stns tan lbs any. Thaw the IS waw gine in ped ibia mans maidsae or Maas its and wain at ase sed ape of aphattrar WW1 In daemmsasi by the my, anima detarannasimt than be final bar the pspees of the tepri ase— ad iadmuy eithis mama SatNaae 3131.1 62 r r r C r r r r r r" t r. r r r r t leer. Condo =tam cans Pre.idai, honor. that in the as sash sapessaaasian sad Warsat y base berg denied by the asy. if ups s trial ea the nasus the eq de &nos she the eider sr nays. wee aMk ing in seed faith. ti ahes aliden w Maim teats and aids the soaps d wile ns s she ioia®sfp-s l aead a shall be =mad sad sena l& Lgai sgsee tsaaaed is she dela rn the dein re __t_ The ay shell as he liable ter say seer ams d ant anal dein sr not domed yids awed r. and the sly raises abs right to awns say dadraa and awls any sees tat at nay dais or suit tits it deems aepsiiset. (el Bgrsemaais a saes The any shall ban she right as any m wend. aqui npneasnasisa sbnsegil the any ssneasy. or is in tn that* the wheals d sane legal teamed. to say else ee ospieyes seed is maateais whit any slain fa demon w .tits esti antes awns — sass paean arising enc of the teas sir add{ a ofespigsss. presided We seek anew sr employes is rale& to iaisid osis as an AS is this as lasank Leda pavaeeemieashallbe penile&assnsee to the ear or employes. and oaf aloe ee enpieyes eon haw his or bur es. ern' saint in the Edens as the eb expos d tbs ager er glow. The amen w e nleyee shell snpmssd !ally wish the city in peepaeauies and flans tithe aas. and the <jdlan to aeprse shaill wait seek emam+s er eapiene's right repesstas(es and iniessdey mike this sena (dl City's dourer. Noshing is this settee shell be attuned as waiving tie slats debase et gowessew1 inessenty to it or its mains or an is nay satins inesght mina the any we soak anus se *spina le any suis w slain waning ander the Tame Tan Claims a the indenessy panne by this sadist skull be linden is ths•wmma7 limits. applicable to the airy provided in said Qat as sennisi. (el Notice. The plaids et this sends. skull appbr nit when ahs asy be bean ghee nudes et the widen brought against say sits eine ar ampleyve within tan (10) doe et ern of preens apes she erne ee sapiens. r(p Disciplinary widens. Netbdug is this stades shall pins the city tree whin diseipddnay pods apoian any alar or employs. ter endues ddaaded or indaesirsd by Sea mss 63 C! r c r C C r r r APPENDIX E Wire and Electronic Services liasasSar City of corpus Christi E_ r r r r r.- r r r r r r r r r P!SONNt. 31147 the may vada this _ecaoa. either before or altar eoaeiuma of the ovii mat . (q Swts Ea SAS( of the eine Nadi as 15 this Sharma shall remise she city to lades aa7y hay cams or employes for move. im sae snot him or ae is suss by or ve iehsif of the airy. 23e mel mail my. however. alma the any army my to rgee.ss say officer or may= s s ase brought by a tespan Masi! of the eisy mat tits Wear or empisfee. (Ord Ne. 1e0. 1 1.3.17.711; Ord. No. 17367. 11 1-3. IO4.al Ord. Na 1lN3. i 1.7.2147: Ord. No. 19334.11.7.2147) See. 3347. Political sad fade. of city employees. (al Purples The axes of this mama is to clearly await waited hos paemtsohie political hat rniu kr all city employ- e. mpioriea,. dammed or ootlaaoa_d. mem them wawa reastad b hdssai or ma law. Oil Pap It is the may of the City of Carpal Chriad that airy e■pa.e be prohibited from taking ea wive pees is apshme kraisy Wave Mee" saepsse a aha lidm for ea sees under the Cagy Masa It is sidiariy any panel that soaps where es - pea provided arpeaprovidd ath irwse. city empiepees shall have the tight to S pettelpate is minima ai a triaas other thancampeigas far Sty Sea caiom. It is the apses d fide remiss to slily delieeesm those activities whiith city employees may had may nes paeaapom M. (d Ryolmda =him (1) To avail undue hulnmaam of city esmpimyeee ea the oat -. deity aetmdi eienan" sad to avoid nada- iaamaw of d4 couseiime- or csdidates for city mail os city em- ploys the feliswmg arias are Spat a. N. empietee of the city or asssestioa d -ooh age SW My publicly adorn or eeeivoiy support canal Oelm far tba city conned or any *Neu arpamatimm to sappers candidata* for the sealant b. Nomapieyeeofthe dry may cssaisu petitions far ern earned Vits although bs may sign such at pain= sr�.N.s 3336.3 64 • APP IX E Frost National Bank COMPANY AGB"" teras cflWtr s THEW massaz.AVID33A •' - -' .B0113E: "I [his Amemml is ams ti into matte Is t day ofAuj . 19g tar Cum M Cauca charm ("Company, a Naga -Pt° wit itt pltoapa1 oeoaa loaned at 12et ..w.wl ar_ corer Cha�wl_ r:_ n i , ani THE FROST NATIDNAI. SANK r`'Origiaanng Batt a mans! banking association. with its ptmeipai olRas loam' a 100 We Hausa Sees men. Sas ABmHaCar;Cainsane 73205. aaa4Trla a A. n aha as e s aaaeass ataaas ams ■ in as Asr.at Oa t a• ma a'5MAC1A, aili wan amiss Y so of aunt as saw ass us aa as sasses erne ansa seen as M Ura ars w see r sass d Y lams Awa On aawa. eaasrseNAaAi. Lrasaai 8. as ar iia mass nrar d a seas miasmmiasmatmiasmata(SACRA a SWAM. aas of NACU Ya as Hasaso Y d SWIM. ass — ant Y at was as nae sada nos waist Sawa a as aIle a a Y'aals'► int OS awn s n r s s GlansDsrr. as lames a Asomamiasas. 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Ca aas vias ar Onion Ss isaeaaana ins al ssa is Ape. al Om sa'Sawn tie an sasaiNaassaal a Isla as soap mese-1 ate as a ass Ca. 21. tssasswea'sh.. M sanwstilwafaiaakw nue ens Ina atsasta9lg urse aka Ekiri hsslissaasal taawa a as one afssa►ss aa.las stats Asa as an s a ave s sviw el awn in suphs aaala Crian pJ WITNESS WHEREOF the peau Into have amid this Apane a W ba aammad as alba day and war ran above data FO QANY: OE ATNG SANKt {[ rofCarpo a... TIM TAOIST Ntira ire Br f04,4 3ttjc3 4.1Nis /Ma+wwC/ TMY;R l'f MOCr111rNi Accord ss to tot James R. Bray. Jr. [,ad WAttomsy, 0A,t�a E. Aser.'a'st My Attorney r r 69 APPENDIX F Investment Policy Resolutions City of —CaPus ti tromisosmor C i A RESOLUTION AMENDING THE CITY INVESTMENT POLICY TO ALLOW CONTRACTS C WITH INVESTMENT MANAGEMENT FIRMS TO PROVIDE FOR THE INVESTMENT AND MANAGEMENT OF PUBLIC FUNDS UPON CITY COUNCIL APPROVAL AND ADOPTING THE CITY INVESTMENT POLICY j' AS AMENDED. WHEREAS, the City of Corpus Christi Investment Policy was adopted in Resolution No. 022390 on October 24, 1995, amended in Resolution No. 022980 on July 8, 1997; amended in Resolution No. 023133 on November 18, 1997; and amended in Resolution No. 023472 on October 27, 1998; WHEREAS, the Texas Legislature recently adopted an amendment to the Public Funds C Investment Act to allow a governing body to approve contracting with an investment management firm for the management of its funds; C WHEREAS, City of Corpus Christi Investment Committee reviewed the proposed amendments to the Investment Policy identified in the attached summary and recommends that the City Council amend the City Investment Policy; CWHEREAS, as provided in Section IL C. of the Investment Policy, the City Council must review the Investment Policy on or before December 31 of each year. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: l SECTION 1. The City Investment Policy is hereby amended and adopted. A summary of the amendments is attached and incorporated as Exhibit A. A copy of the amended City Investment Policy is attached and incorporated as Exhibit B. ATTEST: THE CITY OF CORPUS CHRISTI City Secretary MAYOR The City of Corpus Christi C Approved this the day of 11999. i James R. Bray, Jr., City Attorney i By: (' Lisa Aguilar L LOAkes.0l0 70 Assistant City Attorney CORPUS CHRISTI, TEXAS DAY OF , 19 The above resolution was passed by the following vote: Samuel L. Neal, Jr. Javier D. Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales Rex A. Kinnison Betty Jean Longoria John Longoria Mark Scott LOAkes.010 71