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
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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.
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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.
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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
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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
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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
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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:
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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.
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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.
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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.
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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.
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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.
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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
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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:
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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.
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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
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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.
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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
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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
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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
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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
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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
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(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
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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
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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.
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(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
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(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
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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.
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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
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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
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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
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(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
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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.
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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
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802.001;
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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
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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
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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:
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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
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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
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Lisa Aguilar. Assistant City .Attomcy
tan000.or4
A9pit W. 1999
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APPENDIX B
List of Authorized City Representatives
City of
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APPENDIX C
City's Code of Ethics Ordinance
tellease
City of
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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
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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
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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
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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.
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(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.
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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.
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(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)
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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.
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(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
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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
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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
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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
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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
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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)
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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
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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
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-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
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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
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(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
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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
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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
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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
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APPENDIX E
Wire and Electronic Services
liasasSar
City of
corpus
Christi
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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
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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.
C. an dial Yeas a Ilan a Moawin awe lona as la is a 'Fal' aaalIra saasatnals
('�Ya as. as a alio ass r
Was aa mai as Camp suesueis via Oaesre ar ma Ilia ib aas la sr s a la — a eso r an
Sas an asaa nionow aaalb Wr e
dlanes asaarrssoa
eararr Yeso
alt WRACK
sol
1. Is d nes r ria. Can s alalias Ss 00110111a ark an Y as d ata AAL ea til Pit an at Aaac s
a sCsS inss lonalama wawa Sas In la Ma a aasamara Tawnail sssaaa nasaaslaas Sana
Ina iassrs•arwsaaal. t ears MOO -- Sir —anlaamI In Ss Ow Samarlaa 1291/amaewSarwa•sr
Man lar nar w Sasasraanis I2Saaasoaaraean assaalattoaarla Ow Tn Daaaalaa fl _Saaaa.glaara
ea Wano awn owr-t_ •a ala =paa aasaasngaaaaaaarsaaaMrao__. anSIlassOa=aakWOr
a assaaosnasaYisaaaaaaaaeaaaasseraaas anoSrsarasaasaAaaswassa►sasaaa Ysasa
Yt.. as The lallanlin IS In IS a INlonaaa . 'Mail SSaaal OOolasaSasl.saslraUMW
assns Sue laai s ass a a Y w m Maw wants as Ya MIMES USA amaY ea d ansa w oras at an
,,,,aesas�n w Ca ssa.a■a1s•aasw.(ila a s d Sea wars. eawa alas s Osman lei .:ansa it OR S Sans'
r4 as. arras. a to aawaas asaaantOlin aaaaa a Yana So=
Alr�sa�..
Canaria
ram
(0 Oaisna ea Y'aasaaas Wain" Oa. Coes _L,_- eeosee nas aereta it
YSaatsaatea saaraaY►mlalaairolasr fnn irises• was ow' aaaaa Moll a• SICar
•Saar Ian Oa aria. saw sew ass Y awnans a. saaifis Dobie aosalMaSap Osiklma ansa
as .m asaa.aeaaasrwssawsWYtal.a.alWasa=lo a t .
OS limb s eaa s-_ swan Sr a aas a a an as anis a sal of a0 wowateas or ear in
aaaaaaaa.awns
M Maness aesa mean= s Y Oa tns► warn an was. oa aw a a sante air Ys Ya chin is
again lows anal
14 Vows Mu Odes Mite aras.masposr Final kssrPal3<r•pwarAiiaae Sake aaaMIR water al
aalms .assaWale.
3. Sir.ws Cala aaway asaBaantarYw.panstoawn.Ssarint awidSanaaaraeY
asoill a•aassdagarw Gina aOaawsala . anal t Ade SYS Ilse
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FO QANY: OE ATNG SANKt
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Accord ss to tot
James R. Bray. Jr.
[,ad WAttomsy, 0A,t�a
E. Aser.'a'st My Attorney
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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
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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
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