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HomeMy WebLinkAbout1998-02-17 - Special City CouncilMINUTES OF SPECIAL MEETING City of Stephenville - City Council TUESDAY, FEBRUARY 17, 1998 - 5:30 P.M. The City Council of the City of Stephenville, Texas, convened in special session on Tuesday, February 17, 1998, at 5:30 p.m., in the Council Chambers at City Hall, 298 West Washington Street, with the meeting being open to the public and notice of said meeting, giving the date, time, place and subject thereof, having been posted as prescribed by Chapter 551, Government Code, Vernon's Texas Codes Annotated, with the following members present, to wit: Mayor: Mayor Pro -Tem: Councilmembers: John Pollan Bill Corbin Marshall Shelton Joel Hillin K. H. Conatser Bea Marin Billy Bob Hodges Barbara Terrell Absent: Jerry B. Madkins Others Attending: I. CALL TO ORDER Don Davis, City Administrator Cindy L. Stafford, City Secretary Randy Thomas, City Attorney Mayor Pollan called the meeting to order at 5:30 p.m. and declared a quorum present. H. AUDIT REPORT FOR FISCAL YEAR 1996 -97 Lewis Crain of Rutledge, Crain and Company, presented the audit report. He first said that when his firm conducted the audit, the city offices were being relocated to its present facility. Upon seeing the completion of the remodeling and knowing the cost of same, he said he is astounded and impressed with the results. He complimented those responsible for achieving such beautiful results and such a low cost. Crain reported that the General Fund added a little over $600,000 to reserves for fiscal year 1997 -98. He said that is particularly good if you look in the financial statements at the budget report. You realize then, that $800,000 of that was in revenue more than what was projected. He said that from a conservative standpoint, the City has done well at estimating revenues at "what you think you're going to get and then seeing a surplus come in, it really makes you feel good ". Also, in operating expenses in the departments, there was a positive variance of $300,000. He said that anytime more money comes in than was budgeted and staff holds down expenses, spending less than was budgeted, it February 17, 1998 -Minutes of Special Meeting is very important. He called the Council's attention to page 20 of the audit report. He pointed out that the reserves in the General Fund should be adequate to give the city enough "operating capital" for 90 to 180 days in case of a drastic occurrence, i. e. tornado. He said a problem he has with many clients sit that they work too closely to "the edge" and never prepare for emergencies. Crain said that it is appreciated to work with a client like the City of Stephenville who is conservative. Crain also emphasized a recommendation which is made to the city staff in their report. He brought up the problem that will arise with computers when we reach the year 2000. Crain said that he was pleased that this problem has been given attention for years. He complimented the City's Finance Director, Mark Kaiser, for having the foresight to deal with this problem far in advance. Council member Corbin made a motion that the audit report be accepted and referred to the Finance Committee. Council member Terrell seconded the motion which passed by unanimous vote. City Administrator Don Davis commended Finance Director, Mark Kaiser, for his work. Davis also expressed appreciation to Mr. Crain for their work. III. WATER PLANNING COMMITTEE -- Consider the Approval of Plans and Specifications for Relocation of Water Line along US Hwy. 67/377 Mayor Pollan explained that this project is necessary due to the widening of U.S. Hwy. 67/377 between Dublin and Stephenville. He also mentioned that two cuts will be made in the water line to better enable development of the newly annexed land in that area. There was clarification that $334,240 is estimated for this project. Council member Hillin moved to approve the plans and specifications for the relocation of a 16 inch water line along US 67/377. Council member Terrell seconded the motion which passed by unanimous vote. IV. FINANCE COMMITTEE Ordinance for TU Electric Rate Reduction Council member Corbin moved to adopt Ordinance No. 1998 -4 approving retail base rate reductions for Texas Utilities Electric Company. Council member Marin seconded the motion, which passed by unanimous vote. Quarterly Hotel/Motel Tax Reports from the Chamber of Commerce Teresa Buske, Executive Vice President of the Stephenville Chamber of Commerce, presented the Chamber's tourism report. She presented the report of events which the Chamber assists with funding for promotions. The second report is a budget worksheet which provides information on what is budgeted for the years 1997 and 1998. The third r February 17, 1998 - Minutes of Special Meeting report is a year -end report for 1997. She said that the Chamber of Commerce is making a concentrated effort to provide direction on tourism and focus on doing a better job by promoting Stephenville through tourism. Council member Corbin moved to accept the Chamber of Commerce proposed budget. Council member Marin seconded, which passed by unanimous vote. Amendments to the Investment Policy Council member Corbin advised that the last legislature approved some new requirements for investment policies in the Public Funds Investment Act. The City has amended its policy to comply with the new legislature. Council member Corbin moved to adopt the changes in the Investment Policy. Council member Hillin seconded the motion, which passed by unanimous vote. Don Davis mentioned that the quarterly investment report would be made a part of the monthly status reports. V. NOMINATIONS COMMITTEE Consider an Ordinance Creating the Stephenville Fourth of July Family Fun Fair Committee Council member Terrell reported that no formal Council action has ever been taken to create a board which would organize the Stephenville Fourth of July Family Fun Fair. Terrell made a motion to adopt Ordinance No. 1998 -5 creating the Fourth of July Family Fun Fair Committee. Council member Conatser seconded the motion. Council member Marin raised the question why membership was set out as "a thirty- member committee made up of fifteen couples ". Terrell explained that while a large number of the committee members may be married couples, there are single persons serving on the committee as well. After discussion, Terrell made an amendment to her motion to provide that the words "made up of fifteen couples" be deleted from the ordinance. Conatser seconded the amendment, which passed by unanimous vote. Vote was then taken on the amended motion, and it passed by unanimous vote. Consider Appointments to the Fourth of July Fun Fair Committee Council member Terrell made a motion to appoint the following people to the Stephenville Fourth of July Family Fun Fair Committee: Russell and Lani Fairchild Hadley and Crystal Woemer Randy and Polly Clements Steve and Julie Thomas Tim and Loreen Bliss February 17, 1998 -Minutes of Special Meeting VI. CONSIDER AN ORDER CALLING AN ELECTION FOR MAY 2, 1998 Council member Hillin moved to call an election for May 2, 1998 to elect a mayor and four council members to Place 2, 4, 6, and 8. Council member Hodges seconded the motion which passed by unanimous vote. VIL CONSIDER A CONTRACT WITH THE ERATH COUNTY CLERK FOR THE PURPOSE OF CONDUCTING EARLY VOTING FOR THE MAY 2, 1998 ELECTION Council member Shelton moved to approve the contract between the City and the Erath County Clerk for the clerk to conduct and supervise early voting for the May 2, 1998 election and to pay the clerk $480.00 for such services. Council member Marin seconded the motion, which passed by unanimous vote. VIII. REPLACE BALLFIELD LIGHTING AT THE OPTIMIST PARK SOFTBALL Ronnie Isham, Director of Community Services, explained a critical situation with the infield light standards located on the first and third base sides of the Optimist Field in City Park. He displayed an overhead drawing showing that the poles and cross arm assemblies are deteriorating and unstable, which causes a very dangerous and hazardous situation. Isham said these light standards, which are 25 years old, have been inspected and condemned and are beyond repair. Isham reported that different options to address this problem had been researched. There are not many contractors who perform this type work. The contractor who installed the poles is out of business, but recommended someone else. Pecan Valley Electric Co., Inc. was contacted, and they were willing to inspect the problem and set out some options, which are as follows: 1) Replace 2 `B" wood poles with new 60 -foot class 1 wood poles, new steel cross arms and reuse existing fixtures, $11,500.00. 2) Replace 2 "B" wood poles with new 60 -foot powder coated steel poles, steel stub bases, new steel cross arms and reuse existing fixture, $13,900.00. 3) Replace 2 "B" wood poles with new 60 -foot powder coated steel poles, steel stub bases, new Qualite cross arms, 12 new 1650 watt Qualite Luminaries (6 each pole) remote ballast assemblies and wiring harnesses, $19,500.00. [Recommended option.] Council member Shelton moved to accept Option No. 3 to replace 2 `B" wood poles with new 60 -foot powder coated steel poles, steel stub bases, new Qualite cross arms, 12 new 1650 watt Qualite Luminaries (6 each pole) remote ballast assemblies and wiring harnesses for $19,500.00. Council member Corbin seconded the motion, which passed by unanimous vote. February 17, 1998 - Minutes of Special Meeting Council member Hillin moved to approve the Consent Agenda as follows: IX. CONSENT AGENDA - -Bid Awards A. Mow Tractor B. Street Sweeping C. Turf Vehicles D. Annual Chlorine Contract Council member Conatser seconded the motion, which passed by roll call vote. X. ADJOURN There being no further business, the meeting adjourned at 6:22 p.m. ATTEST: February 17, 1998 - Minutes of Special Meeting Jo ollan, Mayor CONTRACT FOR ELECTION SERVICES wlTll ERATII COUNTY CLERK AND CITY OF STEPHENVILLE This contract made this 20th day of February, 1998, by and between the CITY OF STEPHENVILLE, hereinafter referred to as "City ", and the County Clerk of Erath County, Texas, hereinafter referred as "Clerk ", for the conduct and supervision of early voting for the City of Stephenville General Election on May 2, 1998. This agreement is entered into in consideration of the mutual covenants and promises hereinafter set out: Duties and Services of Clerk The Clerk shall be responsible for performing the following duties: A. Arrange for the selection, notification, and training of a deputy early voting clerk. B. Supervise and conduct early voting in person at the office of the County Clerk in the Erath County Courthouse. Early voting in person shall begin at 8:00 a.m. on April 15, 1998 and shall end at 5:00 p.m. on April 28, 1998, and shall continue from 8:00 a.m. until 5:00 p.m. each weekday during said term. C. Secure the early voting ballot box and the unvoted ballots at the close of early voting each day; and remove the ballot box and ballots at the beginning of early voting the following day. D. Provide the advisory services in connection with early voting in person. E. Deliver all voted and unvoted ballots to the main polling place at the close of voting on the last day of voting at the early voting polling place. Duties and Services of City The City shall, at its sole cost and expense, perform the following: A. Procure and distribute all necessary election supplies, including: (1) ballots; (2) election kits and supplies; (3) voter registration list; and (4) ballot boxes. Early Voting Contract - Page 1 February 19, 1998 B. Prepare all election orders, resolutions, notices, and other statutory documents for adoption and for execution by the appropriate officer. Take all actions required by law for calling the election, handling contests, canvassing the returns, and deelazing the results. C. Prepare and publish in the official newspaper, or post, all required election notices. D. Deliver to the Clerk the official ballot. E. Prepare and submit to the U.S. Department of Justice under the Federal Voting Rights Act of 1965, the required submissions on voting changes and procedures. General Conditions A. Nothing contained in this contract shall authorize or permit a change in (1) the officer with whom or the place at which any document or record relating to the election is to be tiled; (2) the place at which any function is to be carried out; (3) the officers who will prepare the official canvass of the election returns; (4) the officer who will serve as custodian of the voted ballots or other election records; and (5) any other nontransferable functions specified by section 31.096 of the Texas Election Code. B. The Clerk is the agent of the City for the purposes of contracting with the third parties, with respect to the election expenses within the scope of the Clerk's duties; and the Clerk is not liable for the governing body's failure to pay a claim. C. The Clerk shall file copies of this contract with the County Judge and the County Auditor of Erath County, Texas. Payment for Services 1998. The City of Stephenville shall pay to the Erath County Clerk the sum of $480.00 on May 1, WITNESS the following signatures and seal: CITY OF STEPHENVILLE BY d� Jo Pollan, Mayor Early Voting Contract - Page 2 February 19, 1998 ORDINANCE NO. 1998 -4 -' AN ORDINANCE APPROVING RETAIL BASE RATE REDUCTIONS FOR TEXAS UTILITIES ELECTRIC COMPANY; PROVIDING AN EFFECTIVE DATE THEREFORE; APPROVING A MOST FAVORED NATION PROVISION; PROVIDING AN EFFECTIVE DATE; AND FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS; this City is a regulatory authority under the Utilities Code and has original jurisdiction over the rates of Texas Utilities Electric Company (TUEC); and WHEREAS, TUEC's retail base rates should be adjusted because of changes that have occurred since such rates were last reviewed in PUC Docket No. 11735; and WHEREAS, on December 22, 1997, TUEC filed with the Governing Body of this municipality a Petition and Statement of Intent to implement base rate reductions for its retail electric service customers within this municipality, which base rate reductions are components of a settlement reached among various parties set forth in a Stipulation and Joint Application for Approval Thereof (Stipulation) filed with the Public Utility Commission of Texas (PUC) on December 17, 1997; and WHEREAS, TUEC's rates should be reviewed to reflect load growth, cost reductions, debt refinancing, the possible synergistic savings attributable to the merger with Enserch, declining rate base and declining cost of capital, all of which could have occurred since base rates were last reviewed in PUC Docket No. 11735; and WHEREAS, the Stipulation calls for recording depreciation that would normally be charged against transmission and distribution assets as additional depreciation on nuclear production assets; and WHEREAS, this City desires the PUC to review the Stipulation, PUC Docket No. 18490, and asks the PUC to review the shifting of depreciation from transmission and distribution assets to nuclear production assets, as called for in the Stipulation and to determine whether the provisions of the Stipulation are consistent with sound regulatory and public policy. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS: SECTION 1. The retail base rate reduction tariffs filed by TUEC (Rider RRD - Residential Rate Reduction, Rider GSRD - General Service Secondary Rate Reduction, and Rider RD - Rate Reduction) are hereby approved effective January 1, 1998. The referenced schedules shall remain in effect until such time as they may be changed, modified, or amended by the approval of the City Council. The filing of the rate schedules shall constitute notice to the consumers of electricity, within this municipality, of the availability and application of such rate schedules. SECTION 2. Nothing contained in this Ordinance shall be construed now or hereafter as limiting or modifying in any manner the right and power of the Governing body of this municipality under the law to regulate the rates, operations, and services of TUEC. SECTION 3. Notwithstanding any other provision of this Ordinance, the rates authorized for electric service in this municipality shall not exceed the lowest rates available to residents of any other municipality served by TUEC finally resulting from TUEC's filing of the Stipulation and any other appeals from City ordinances connected therewith. SECTION 4. This Ordinance shall be in full force and effect from and after its passage, and it is so ordained. SECTION 5. It is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public and as required by law and that public notice of the time, place and purpose of said meeting was given as required. PASSED AND APPROVED at a Regular Meeting of the City Council of the City of Stephenville, Texas, on this the 17th. day of February, 1998. ATTEST: Cindy afford , City , ffibrctary eb, &W \ — Reviewed by Donald B. Davis, City Administrator Randy Thomas, City Attorney Approved as to form and legality r —4� Jo ollan, Mayor CITY OF STEPHENVILLE INVESTMENT POLICY I. POLICY STATEMENT This document is to establish an investment policy which provides clear and concise guidelines for investing City of Stephenville funds; providing for security of capital, diversification and maximum return. It is the policy of the City of Stephenville, Texas ( "City") that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal invested through limitations and diversification while meeting the daily cash flow needs of the City and conforming to all applicable state and City statutes governing the investment of public funds. The receipt of a market rate of return will be secondary to the requirements for safety and liquidity. It is the intent of the City to be in complete compliance with local law and the Texas Public Funds Investment Act. The earnings from investment will be used in a manner that best serves the public trust and interests of the City. H. SCOPE This investment policy applies to all the investment activities and financial assets of the Government of the City. All financial assets of all funds of the City at the present time and any funds to be created in the fixture will be administered in accordance with the provisions of these policies. All funds are accounted for in the City's Comprehensive Annual Financial Report (CAFR). This policy serves to satisfy the statutory requirement to define and adopt a formal investment policy. The City commingles its fixnds into one pooled investment fixnd for investment purposes for efficiency and maximum investment opportunity. These funds are defined in the CAFR and include all City funds. Ill. OBJECTIVES AND STRATEGY It is the policy of the City that all funds shall be managed and invested with four primary objectives, listed below in order of their priority. These objectives encompass: Safety and Security of Principal The primary objective of the City's investment activity is the preservation of capital in its overall financial portfolio. Each investment transaction will seek first to ensure that capital losses are avoided, whether they be from securities defaults or erosion of market value. To obtain this goal, diversification is required in the portfolio's composition. The suitability of each investment decision will be made on the basis of these objectives. Page 1 -- DAWP- FILESWARKUNVEST2.1`01, Liquidity The City's investment portfolio will remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated. Liquidity will be achieved by matching investment maturities with cash flow requirements. Return on Investment The City's investment portfolio shall be designed with the objective of regularly exceeding the average rate of return on three -month US Treasury Bills. The investment program will seek to augment returns above this threshold consistent with the cash flow of the portfolio, risk limitations identified herein, and prudent investment principles. Local Considerations The City seeks to attain market rates of return on its investments, consistent with constraints imposed by its safety and security objectives, cash flow consideration, and state and local laws that restrict the placement of certain public funds. Strategy The primary objective for these funds will be liquidity and reasonable market yield. Funds will be invested in accordance with the City's Investment Policy. The authorized securities chosen or pool utilized for this portfolio will be of the highest credit quality and marketability supporting the City's objectives of safety and liquidity. Securities, when not matched to a specific liability, will be short term and of a liquid nature to provide adequate liquidity for the City. The portfolio shall be diversified to protect against market and credit risk in any one sector. The weighted average maturity on the pooled investment group will be no greater than one year. Because the finds are pooled for investment purposes, the portfolio will address the varying needs of all funds in the pooled fund group, recognizing liquidity needs as well as the desire to extend slightly for incremental return on core funds in the pool. IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY The City intends for all investment activities to comply with state and local laws. Direct specific investment parameters for the investment of public funds in Texas are found in the Public Funds Investment Act, Chapter 2256, Texas Government Code, (the "Act "). The Act is attached as Exhibit A. The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies collateral requirements for all public funds deposits. The Collateral Act is attached as Exhibit B. The Interlocal Cooperation Act, Chapter 791, Texas Government Code, authorizes local governments in Texas to participate in an investment pool established thereunder. That statute and reference to authorized investment in investment pools in the Act, is primary authority for use of investment pools by political subdivisions of the State of Texas. i Page 2 -- DAAT- FILMMARK\INVEST2.1`0L V. DELEGATION OF INVESTMENT AUTHORITY The Financial Director, acting on behalf of the City Council, is designated as the Investment Officer of the City and is responsible for investment management decisions and activities. The Council is also responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. The Council may contract with a registered Investment Advisor to assist the Investment Officer in the fulfillment of his responsibilities. All participants in the investment process shall seek to act responsibly as custodians of the public trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment officer and approved by the City Manager. VI. PRUDENCE The standard of prudence to be used in the investment function shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. This standard states: "Investments shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived." Limitation of Personal Liability The Investment Officer and those delegated investment authority under this policy, when acting in accordance with the written procedures and this policy and in accord with the Prudent Person Rule, shall be relieved of personal responsibility and liability in the management of the portfolio provided that deviations from expectations for a specific security's credit risk or market price change or portfolio shifts are reported in a timely manner and that appropriate action is taken to control adverse market effects. VII. INTERNAL CONTROLS The Investment Officer shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the City. The controls shall be designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, unanticipated market changes, or imprudent actions by employees of the City. Cash Flow Forecasting Cash flow forecasting is designed to protect and sustain cash flow requirements of the City. Supplemental to the financial and budgetary systems, the Investment Officer will maintain a cash flow forecasting process designed to monitor and forecast cash positions for investment purposes. Cash flow will include the historical researching and monitoring of specific cash flow items, payables and receivables as well as overall cash position and patterns. Page 3 -- DAWP- FILES\MARK \INVEST2.P0L Weighted Average Maturity The portfolio will be structured so that the maximum weighted maturity of the overall portfolio based on the stated maturity dates, will not exceed ones VIII. AUTHORIZED INVESTMENTS Acceptable investments under this policy shall be limited to the instruments listed below. The investments are to be chosen in a manner which promotes diversity or market sector and maturity. The choice of high -grade government investments and high -grade money market instruments is designed to assure the marketability of those investments should liquidity needs arise. A. Obligations of the United States Government, its agencies and instrumentalities, and government sponsoring enterprises, excluding collateralized mortgage obligations (CMOs), not to exceed two year to stated maturity; B. Fully insured or collateralized certificates of deposit from a bank domiciled in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed one year to the stated maturity; C. Commercial paper rated A -1/P -1 or the equivalent by at least two nationally recognized rating agencies not to exceed 180 days to stated maturity; D. Repurchase agreement and reverse repurchase agreements as defined by the Public Funds Investment Act, not to exceed 180 days to stated maturity, provided an executed PSA Master Repurchase Agreement is on file with the City and the counter party bank or primary dealer; and E. Texas Local Government Investment Pools as defined by the Public Funds Investment Act. If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment by the City until this policy has been amended and the amended version approved by the City Council. Competitive Bidding Requirement All securities, including certificates of deposit, will be purchased or sold after three (3) offers/bids are taken to verify that the City is receiving fair market value /price for the investment. Delivery versus Payment All security transactions, including collateral for repurchase agreements, entered into by the City, shall be conducted on a delivery versus payment (DVP) basis. i i Page 4 -- D: \WP- FILES\MARK \INVFST2.P0L i IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS All investments made by the City will be made through either a regional or primary broker /dealer which complies with the City's requirements. The City, or its Investment Advisor, shall maintain a list of financial institutions which are authorized to provide investment services. The list of Q12roved broker /dealers is attached as Exhibit D and part of this policy for Council approval purposes. At a minimum the City shall conduct an annual evaluation of each bank's creditworthiness to determine whether it should be on the "Qualified Institution" listing. Banks shall continuously provide their most recent "Consolidated Report of Condition" (call report). Securities broker /dealers shall meet certain criteria as determined by the Investment Officer. A list of no more than five (5) authorized broker /dealers will be established and maintained. The following criteria must be met by those firms on the list: - provision of an audited financial statement for the most recent period, -proof of certification by the National Association of Securities Dealers (NASD), -proof of current registration with the State Securities Commission, and - completion of a City questionnaire. Every dealer with whom the City transacts business will be provided a copy of this Investment Policy to assure that they are familiar with the goals and objectives of the investment program. The broker /dealer will be required to return a signed copy of the Certification Form substantially in the form provided as Exhibit C. X. DIVERSIFICATION AND MATURITY LIMITATIONS It is the policy of the City to diversify its investment portfolio. Invested funds shall be diversified to minimize risk or loss resulting from over - concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. At a minimum, diversification standards by security type and issuer shall be: U.S. Treasuries and securities with the US Government's guarantee 100% U.S. Government agencies and instrumentalities not to exceed 50% Fully insured or collateralized CDS Repurchase agreement 100% Local Government Investment Pools Liquidity Pools 100% Maximum percent ownership of pool not to exceed 20% The portfolio shall be diversified by maturities. The Investment Officer, to the extent possible, will attempt to match investment with anticipated cash flow requirements. Matching maturities with cash Page 5 " - -" DAWP- FILES\MARK\INVEST2.P0L flow dates will reduce the need to sell securities prior to maturity, thus reducing market risk. Unless matched to a specific requirement, the Investment Officer may not invest more than 20% of the portfolio for a period greater than one (1) year. XI. SAFEKEEPING AND COLLATERALIZATION All securities shall be brought on a delivery versus payment basis and be held in safekeeping by either the City, an independent third party financial institution, or the City's designated depository. All safekeeping arrangements shall be designated by the Investment Officer and an agreement of the terms executed in writing. The third party custodian shall be required to issue safekeeping receipts to the City listing each specific security, rate, description, maturity, cusip number, and other pertinent information. Each safekeeping receipt will be clearly marked that the security is held for the City or pledged to the City. All securities pledged to the City for certificates of deposit or demand deposits shall be held by an independent third party bank domiciled in Texas. The safekeeping bank may not be within the same holding company as the bank from which the securities are pledged. Collateralization Collateralization shall be required on two types of investments: a. certificates of deposits over the FDIC insurance coverage of $100,000, and b. repurchase agreements. In order to anticipate market changes and provide a level of additional security for all funds, the collateralization level required will be 102% of the market value of the principal and accrued interest. XIL PERFORMANCE EVALUATION AND REPORTING The Investment Officer shall submit quarterly and annual reports to the City Council containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program. At a minimum, these summary management reports shall contain: Beginning and ending market value of the portfolio by market sector and total portfolio, Beginning and ending book value of the portfolio by market sector and total portfolio, Transactions which change market and book value, Overall current yield of the portfolio, Overall weighted average maturity of the portfolio, Maximum maturities, by security, in the portfolio, Total earnings for the month and fiscal year -to -date, and Performance comparison including average yield on 3 -month US Treasury Bill. The detail reports with full information on each individual position in the portfolio including: Page 6 - DAWP- FILESWARK\INVESTIPOL f Par amount Coupon or rate Maturity date Yield -to- maturity Yield at cost Cusip Total coupon interest received Amortization/Accretion Book value (Beg and End) Market Value (Bee and End) Gain/loss Interest earning accrued The reports will be prepared jointly by all involved in the investment activity and be signed by all staff involved in accordance with the Act. Market Price An independent source will be used to obtain accurate market prices for all securities in the portfolio in order to assure accurate reporting. XIII. DEPOSITORIES The City will designate one banking institution through a competitive process as its central banking services provider at least every three years. This institution will be used for normal banking services including disbursements, deposits, lockbox, controlled disbursement and safekeeping of securities. XIV. INVESTMENT POLICY ADOPTION BY CITY COUNCIL The City's investment policy shall be adopted by the City Council. The policy shall be reviewed on an annual basis by the City Manager and City Council. After its annual review. the Council shall adopt a written resolution approving the Policy and recognizing any changes made to that Policy. PASSED AND APPROVED this the day of 11998. Pollan, Mayor Page 7 D:\WP-F1LES\MARK\1NVFST2.P0L Page 8 DAWP- FILES\MARK \IN VEST2.POL EXHIBITS A AND B PUBLIC FUNDS INVESTMENT ACT (Texas Government Code Section 2256) PUBLIC FUNDS COLLATERAL. ACT (Texas Government Code Section 2257) EXHIBIT C BROKER/DEALER CERTIFICATION FORM as required by Texas Government Code 2256.005(k) CITY OF STEPHENVILLE, TEXAS I, as a registered principal for the firm do hereby certify that I, and the broker covering this account, have received and both have thoroughly reviewed the investment policy of the City. The firm has implemented reasonable internal procedures and controls in an effort to preclude investments transactions between this fine and the City which do not comply with this policy. kl� Title: Date: EXHIBIT D Page 9 D AW- FILESWARKQN V ES T2.POL APPROVED BROKER/DEALERS as required by Texas Government Code 2256.025 CITY OF STEPHENVILLE, TEXAS Broker/Dealers First Chicago Securities Fuji Securities Smith Barney Stephenville Bank & Trust Local Government Investment Pool t 4", 016E r k Page 10 -- DAWP- FILESWARMINVESTIPOL ORDINANCE NO. 1998 -5 AN ORDINANCE CREATING THE FOURTH OF JULY FAMILY FUN FAIR COMMITTEE WHICH SHALL ORGANIZE, PROMOTE AND ADMINISTER THE STEPHENVILLE FOURTH OF JULY FAMILY FUN FAIR; PROVIDING FOR MEMBERSHIP ON SUCH COMMITTEE; AND DEFINING THE DUTIES AND RESPONSIBILITIES OF THE COMMITTEE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS: Section One -- Members There is hereby created a thirty- member committee which shall be called the Stephenville Fourth of July Family Fun Fair Committee. This committee may also be referred to as the "Fun Fair Committ ee ". The Nomination Committee of the Stephenville City Council shall nominate the members of the Fun Fair Committee. All nominations to the Fourth of July Family Fun Fair Committee will be subject to approval by the City Council. The members of the Fun Fair Committee shall hold office for three years, with ten persons being appointed each year. All members of the committee shall be residents of Erath County, Texas. Should vacancies occur on the committee, such vacancies shall be filled in the same manner as original appointments, except such terms shall only be for the remainder of such unexpired term. The City Council shall approve the appointment of new committee members prior to January 1, as the term of office will run from January 1 to December 31. The Director of Community Services of the City of Stephenville and the Vice President of the Stephenville Chamber of Commerce shall serve as ex- officio members of the Fun Fair Committee. Section Two -- Duties and Responsibilities The Fun Fair Committee shall organize, administer, and promote the programs and activities of the Stephenville Fourth of July Family Fun Fair, and shall perform such functions as may be duly delegated to it from time to time by the City Council. Section Three -- Organization The committee is hereby empowered to establish its own parliamentary procedure, provided that such shall not be in conflict with the City Charter or other provisions of law, and organizational makeup. Fun Fair Board - Page 1 Section Four -- Meetings -- The committee shall hold meetings at a location, time, and place as determined by the committee. All meetings of this committee shall be in accordance with the Texas Open Meeting Law. A quorum at any meeting of the Fun Fair Committee will be established by the presence of at least sixteen (16) members. The chairman shall be entitled to vote upon any issue, but shall have no veto power. Section Five -- Attendance at Meetings The committee may establish its own rules as to the attendance of its members to its meetings, and in furtherance of such, the committee may, by a majority vote, expel any member who, in the opinion of the committee, misses an unreasonable number of meetings. PASSED and APPROVED this the 17th day of February, 1998, at a special meeting of the City Council of the City of Stephenville, Texas. Q'4z �� Joh ollan, Mayor ATTEST: W 'U _ Reviewed by Donald B. Davis, City Administrator Approved as to form and legality Randy Thomas, City Attorney i Fun Fair Board - Page 2 ORDER OF GENERAL ELECTION FOR CITY OF STEPHENVILLE, TEXAS An election is hereby ordered to be held on May 02, 1998 for the purpose of electing a Mayor and one (1) councilmember to each of the following places: Place 2 Place 4 Place 6 Place 8 Early voting by personal appearance will be conducted each weekday at: Office of the County Clerk Erath County Courthouse 100 West Washington Street Stephenville, Texas between the hours of 8:00 a.m. and 5:00 p.m. beginning on April 15, 1998 and ending on April 28, 1998. Applications for ballot by mail shall be mailed to: Cindy L. Stafford 298 West Washington Street Stephenville, TX 76401 Applications for ballots by mail must be received no later than the close of business on April 24, 1998. Issued this the 17th day of February, 1998. Jo ollan, Mayor