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City Council |
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Agenda Request |
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Agenda Of: |
05-19-09
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Agenda Request
No: |
V-C |
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Initiated By: |
Donna Svatek,
Treasury Manager |
Responsible
Department: |
Fiscal Services |
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Presented By: |
Linda Symank, Director
of Fiscal Servi ces |
Department
Head: |
Linda Symank,
Director of Fiscal Servi ces |
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Additional
Department. Head (s): |
n/a |
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Subject /
Proceeding: |
Qualified
Investment Brokers Consideration and
Approval of Resolution 09-16 |
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Exhibits: |
Resolution 09-16 List of
Authorized Individuals |
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Clearances |
Approval |
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Legal: |
Joe Morris City Attorney |
Executive
Director: |
n/a |
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Purchasing: |
n/a |
Asst. City
Manager: |
N/A |
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Budget: |
n/a |
City Manager: |
Allen Bogard |
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Budget |
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Expenditure
Required: $ |
N/A |
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Amount
Budgeted/Reallocation: $ |
N/A |
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Additional
Appropriation: $ |
N/A |
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Recommended
Action |
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Consideration and approval of Resolution 09-16 authorizing the opening of securities trading accounts with Apex Securities, Inc. and the continuance of accounts with First Southwest Company, Coastal Securities, Duncan Williams, Wachovia Securities, and Wells Fargo Brokerage Services. |
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Executive
Summary |
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Pursuant to the City’s Investment Policy and the Public Funds Investment Act, City Council must annually review and adopt a list of six qualified broker/dealers to engage in investment transactions with the City. Staff mailed questionnaires to 35 broker/dealers and banks in March 2009 and a request for qualifications was published in the City’s official newspaper and on the Bidsync website. The City received eleven responses by the April 3rd deadline. Of the qualified responses received, six are recommended for approval by the City Council. Five of the firms, First Southwest Company, Coastal Securities, Duncan Williams, Wachovia Securities, and Wells Fargo Brokerage Services are currently on the City’s list of approved broker/dealers. Staff recommends adding one new firm to the list, Apex Securities, Inc., for a total of six authorized broker/dealers. As required by the Public Funds Investment Act and the City’s Investment Policy, all investment purchases are competitively bid. There are no fees charged directly for these services. The broker who offers the best return to the City is awarded the sale in each individual transaction. The City’s Investment Policy identifies several criteria to be used in the selection process, including the types of securities traded, volume of trading, percent of transactions failing, and similar client base. In addition, firms are required to provide any litigation of a material nature requiring disclosure in the firm’s annual financial report and references to similar clients. The City’s Investment Policy and the Public Funds Act also require that the qualified representative of the firm execute a written instrument stating in effect that the qualified representative has: 1. Received and thoroughly reviewed the investment policy of the City; and 2. Acknowledged that the firm has implemented reasonable procedures and controls in an effort to preclude imprudent investment activities arising out of investment transactions conducted between the City and the organization. All six recommended firms have executed such an agreement. |
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Exhibits |
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RESOLUTION NO. 09-16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR
LAND, TEXAS, AUTHORIZING THE OPENING OF SECURITIES ACCOUNTS WITH APEX SECURITIES,
INC., AND THE CONTINUANCE OF SECURITIES ACCOUNTS WITH WACHOVIA SECURITIES,
DUNCAN WILLIAMS, INC., FIRST SOUTHWEST COMPANY, WELLS FARGO BROKERAGE SERVICES
AND COASTAL SECURITIES.
WHEREAS,
Section 2256.025 of the Government Code requires the City of Sugar Land (City)
to annually review, revise and adopt a list of qualified brokers that are
authorized to engage in investment transactions with the City; and
WHEREAS,
the City is authorizing the opening of securities accounts with Apex Securities,
Inc. and the continuance of securities accounts with Wachovia Securities,
Duncan Williams, Inc., First Southwest Company, Wells Fargo Brokerage Services
and Coastal Securities; NOW THEREFORE;
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SUGAR LAND, TEXAS:
Section
1. That it authorizes the opening of securities
accounts with Apex Securities Inc. and the continuation of securities accounts
with Wachovia Securities, Duncan Williams, Inc., First Southwest Company, Wells
Fargo Brokerage Services and Coastal Securities (Broker).
Section
2. That the securities accounts are for the
purpose of purchasing and selling securities, as provided by the City's
investment policy. All orders and
instructions, written or oral, relating to the securities accounts must be
given to the Broker by any two of the individuals designated as
"Authorized Individuals" in Exhibit A, and any two of them is
authorized and directed to purchase and sell any and all securities for the
City, including the power to deliver, or accept delivery of securities.
Section
3. That the Broker may deal with any of the
Authorized Individuals as though the Broker was dealing with the City directly.
Section
4. That each of the Authorized Individuals is
authorized and directed to execute and deliver to the Broker on behalf of the
City all agreements, documents, contracts, and other writings that the Broker
may require.
Section
5. That the City Secretary (or other duly
designated officer) of the City is authorized and directed to certify, under
the City Seal, or otherwise to the Broker:
(a) A true copy of this Resolution;
(b) Specimen signatures of each individual
empowered by this Resolution;
(c) A certificate (which, if the Broker
requires, is supported by an opinion of the general counsel of the City, or
other counsel satisfactory to the Broker) that the City is duly organized and
existing, that its charter empowers it to transact the business contemplated in
this Resolution, and that no limitation has been imposed upon those powers by
constitution, statute, regulations, charter, by-law, or otherwise.
Section
6. That the Broker may rely upon any
certification given in accordance with this Resolution as continuing fully
effective unless and until the Broker receives written notice of an amendment,
modification or rescission of this Resolution or certification. The Broker is not liable for any action taken
or not taken upon instruction of any Authorized Individual prior to the
Broker’s actual receipt of written notice of the termination or impairment of
the person's authority. The failure to
supply any specimen signature or any other documentation does not invalidate
any transaction which is in accordance with the authority actually granted.
Section
7. That if there is any change in the office or
powers empowered by this Resolution, the City Secretary (or other duly
designated officer) will certify the changes to the Broker, in writing, which
certification, when the Broker receives it, will terminate the powers of the
persons previously authorized and empower the persons thereby substituted.
Section
8. That Resolution No. 07-04 is repealed.
APPROVED
on _______________________________, 2009.
____________________________
James
A Thompson, Mayor
ATTEST: Reviewed
for Legal Compliance:
___________________________
Glenda Gundermann, City Secretary
Attachment: Exhibit
A - Authorized Individuals
EXHIBIT A
AUTHORIZED
INDIVIDUALS
I, Glenda Gundermann, in my official capacity as
City Secretary, certify that any two of the following officers or individuals
have been duly authorized to issue instructions concerning the securities
account, and that the following are their true signatures.
Name Title Signature
Linda Symank Director
of Fiscal Services ___________________________
Donna Svatek Treasury
Manager ___________________________
Alka Shah Accounting
Manager ___________________________
In Witness Whereof, I have hereunto affixed my
hand and the Seal of the City, this ____ day of _________________, 2009.
______________________________
Glenda Gundermann, City Secretary