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R-96-10-24-10E - 10/24/1996TEXAS, ATTEST: WHEREAS, the City of Round Rock, Texas ( "Participant ") wishes to enter into a Participation Agreement with the Comptroller of Public Accounts, acting by and on behalf of the Texas Treasury Safekeeping Trust Company ( "Trust Company "), to have an account established in its name with the Trust Company's Local Government Investment Pool, ( "TexPool "), for the purpose of transmitting local funds for investment by the Trust Company in TexPool, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, That the Mayor is hereby authorized and directed to execute on behalf of the City said Participation Agreement, a copy of same being attached hereto as Exhibit A. RESOLVED this the 24th day of October, 1996. AP Ai Al AL] 1 E LAND, City Secretary B: \UP ROCS \RESOLUTI \RS61O24B.14PD /ecg RESOLUTION NO. R- 96- 10- 24 -10E CHARLES CULPEP R, Mayor City of Round Rock, Texas Co , % F X \� 512/463 -1000 LBJ Scat Office Building Mr. David Kautz City of Round Rock 221 East Main Avenue Round Rock, Texas 78664 -5271 Dear David: As you know, the State Treasury was merged with the Comptroller of Public Accounts on September 1, 1996. Hopefully, that merger has been transparent to you in your interaction with TexPool. As a result of the merger and recent amendments to the Public Funds Investment Act, we have updated the Participation Agreement which has been enclosed. Also enclosed is a summary of the revisions to the Agreement To ensure your continued participation in the program, you must return the signed agreement by November 20. 1996. All current agreements v ill expire on that date. I am also pleased to announce that I am reducing the management fee from 9 basis points to 8 basis points. That makes our fee almost 10 basis points cheaper than our closest competitor! Please be assured that I intend to see that TexPool continues to provide you vtith the same high - quality service at the lowest possible price. In addition to improving the efficiencies at TexPool, I intend to explore other options that could provide further savings for our participants. Some of the proposals I am considering include: keeping TexPool as is hiring a private investment company to manage the fund: or perhaps allowing a private investment company to assume control of all operations of TexPool at some point in the future. Any future decisions relating to TexPool will be based on your best interest and the interest of the taxpayers of Texas. If other options do not improve service and lower your costs, we will continue as is. We will provide advance notice to you before implementing any changes. If you have any questions or need more information, please do not hesitate to call either Oscar Ramirez or Steve Garven with my TexPool staff at 1- 800 -234- 54=1 Sincerely, JO E-jdv SHARP Co ptroller of Public Accounts Enclosures cc Oscar Ramirez Steve Garven John Sharp Comptroller of Public Accounts Dustin, Texas 7877-1 October 10, 1996 SUMMARY OF REVISIONS TO TEXPOOL PARTICIPATION AGREEMENT Following is a summary of revisions to the TexPool Participation Agreement: The TexPool Participation Agreement has been revised to reflect current statutory references resulting from recent amendments to the Public Funds Investment Act and the constitutional amendment which abol- ished the office of the State Treasurer and transferred the Treasurer's duties and responsibilities to the Comp- troller effective September 1, 1996. The detailed operating procedures defining authorized investments, deposit and withdrawal proce- dures by ACH or wire transfer have been removed from the former Agreement and are documented sepa- rately in the "Operating Procedures" that will accompany the revised Agreement. This will allow for revisions of the procedures when appropriate without having to amend the Agreement. Participants will be notified in advance of any changes in the Operating Procedures but approval from each Participant's governing body will no longer be required. The former Agreement requires the Advisory Board to review and approve an investment policy for TexPool. The former Agreement also makes the Advisory Board responsible for any modification or other amendment of the fee structure. Recent amendments to the Public Funds Investment Act make it clear that the Advisory Board's role is purely advisory. The revised Agreement reflects those amendments. With the exception of approving fee increases, the Advisory Board will act in an advisory capacity only. The former Agreement requires that amendments to the Agreement be signed by the Trust Company and the participant. The revised Agreement provides that amendments to the Agreement take effect 45 days after participants are notified of an amendment without action by the participants. Participants retain their right to terminate the Agreement upon 30 days written notice to the Trust Company. These time periods allow participants to review an amendment and to terminate the Agreement prior to an amendment's effective date, if the amendment is not acceptable for some reason. New Section 6.10 of the Agreement provides that the Trust Company may retain an outside party to manage TexPool in accordance with applicable laws and as directed by the Trust Company. If in the future the Comptroller determines that participants' interests are best served through the creation of a successor pool, Section 6.10 allows the Trust Company to assign its rights and obligations and take the necessary steps to effect the transition to the successor pool. A REVIEW OF THIS SUMMARY SHOULD NOT BE SUBSTITUTED FOR A REVIEW OF THE REVISED PARTICIPATION AGREEMENT THAT IS ENCLOSED. THIS SUMMARY IS PROVIDED ONLY AS A USEFUL SYNOPSIS OF SOME OF THE MORE SIGNIFICANT CHANGES TO THE PARTICIPATION AGREEMENT AND DOES NOT EXPLAIN EVERY CHANGE TO THE PARTICIPATION AGREEMENT. ONLY A REVIEW OF THE REVISED PARTICIPATION AGREEMENT CAN PROVIDE THE PARTICIPANT WITH COMPLETE IN- FORMATION TO MAKE AN INFORMED DECISION REGARDING THE REVISED AGREEMENT. Texas Local Government Investment Pool Participation Agreement PREAMBLE This participation agreement (the "Agreement ") is made and entered into by and between the Comptrol- ler of Public Accounts (the Comptroller ), acting by and on behalf of the Texas Treasury Safekeeping Trust Company (the Trust Company ), Trustee of the Texas Local Government Investment Pool (TexPool), and City of Round Rock (the "Participant "). WHEREAS, the Participant may have been a party to an earlier participation agreement with the Texas State Treasurer (the Treasurer ); I WHEREAS, the Treasurers office was abolished on September 1,1996 pursuant to Acts 1995, 74th Leg. S.J.R. No. 1 and the adoption of a constitutional amendment to Article W,, § 1 of the Texas Constitution adopted by the voters on November 7, 1995; WHEREAS, the Participant and the Comptroller desire to enter into this Agreement to replace and supersede any prior participation agreement to properly reflect changes in the Public Funds Investment Act, the abolition of the Treasurer s office and other matters; WHEREAS, the Interlocal Cooperation Act, TEX. GOV'T CODE ANN. ch. 791 and TEX. GOV'T CODE ANN. ch. 2256 (the "Acts") provide for the creation of public funds investment pools to which any local government may del- egate, by contract, the authority to hold legal title as custodian and to make investments purchased with local investment funds; WHEREAS, the Trust Company is a limited purpose trust company authorized pursuant to TEX. GOV'T CODE ANN. § 404.103 to receive, transfer and disburse money and securities belonging to state agencies and local political subdivisions of the state and for which the Comptroller is the sole officer, director and shareholder, WHEREAS, TexPool is a public funds investment pool, which funds are invested in certain eligible investments as more fully described hereafter, i WHEREAS, the Participant has determined that it is authorized under the Acts and other applicable law to enter into this Agreement; and WHEREAS, in an effort to ensure the continued availability of an investment pool as a vehicle for investment of local government funds and simultaneously provide for potential enhancement in services and potential decreases in man- agement and administrative fees, Participant and Trust Company desire to provide in this Agreement for the Trust Company to obtain professional private management services and/or a potential assignment of the Trust Company s managerial obligations relative to TexPool. NOW THEREFORE, for and in consideration of the mutual promises, covenants and agreements herein con- tained, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree with each other as follows: 1 ARTICLE L DEFINITIONS "Account" shall mean any account or accounts, including any sub accounts, established by the Participant in TexPool in accordance with this Agreement and the Operating Procedures (as defined herein), which Account represents an undivided beneficial ownership in TexPool. "Authorized Investments" shall mean those investments which are authorized by the Investment Act (as herein defined) for investment of public funds. "Authorized Representative(s) of the Participant" shall mean any individual who is authorized to execute documents and take such other necessary actions under this Agreement as evidenced by the duly enacted Resolution of the Participant. "Authorized Representative(s) of the Trust Company" shall mean any employee of the Comptroller who is designated in writing by the Comptroller to act as the authorized Trust Company representative for purposes of the Agreement and shall include employees of any private entity performing the obligations of the Comptroller under this Agreement. "Board" shall mean the advisory board provided for in the Investment Act (as defined below). "Investment Act" shall mean the Public Funds Investment Act, TEX. GOVT CODE ANN. ch. 2256, as amended from time to time. "Investment Policy" shall mean the written TexPool Investment Policy, as amended front time to time, relating to the investment and management of funds in TexPool as established by the Trust Company consistent with the Investment Act. "Letter of Instructions" shall mean a written authorization and direction to the Trust Company signed by an Authorized Representative of the Participant. - "Operating Procedures" shall mean the written procedures established by the Trust Company describing the management and operation of TexPool, and providing for the establishment of, deposits to and withdrawals from the Accounts, as amended from time to time. "Participant" shall mean any entity authorized by the Acts to participate in a public funds investment pool that has ex- ecuted an A_reement pursuant to a Resolution. "Resolution" shall mean the resolution adopted by the governing body of a local governmental entity authorizing that entity participation in TexPool and designating persons to serve as Authorized Representatives of the Participant. ARTICLE IL GENERAL ADMINISTRATION Section 2.01. TexPool Defined. (a) TexPool is a public funds investment pool created pursuant to the Acts. r (b) Subject to Section 6.10, the Trust Company agrees to manage the Participant's Account in accordance with the Investment Act and the Investment Policy. Section 2.02. Board. (a) The Board is composed of members appointed pursuant to the requirements of the Investment Act. (b) The Board shall advise the Trust Company on the Investment Policy and on various other matters affecting TexPool, and shall approve fee increases. 2 Section 2.03. General Administration. (a) The Trust Company shall establish and maintain the Investment Policy specifically identifying the Authorized Investments consistent with the Investment Act and the general policy and investment goals for TexPool. (b) The Trust Company shall establish and maintain the Operating Procedures describing the management and operation of TexPool and providing for procedures to be followed for the establishment of, deposits to, and _ withdrawals from the Accounts and such other matters as are necessary to carry out the intent of this Agree- ment. (c) The Trust Company shall have the power to take any action necessary to carry out the purposes of this Agree- ment, subject to applicable law and the terms of the Agreement. Section 2.04. Ownership Interest. Each Participant shall own an undivided beneficial interest in the assets of TexPool in an amount proportional to the total amount of such Participant's Accounts relative to the total amount of all Participants' Accounts in TexPool, computed on a daily basis. Section 2.05 Independent Audit. TexPool is subject to annual review by an independent auditor consistent with the Investment Act. In addition, reviews of TexPool are required to be conducted by the State Auditor's Office and by the Internal Auditor of the Comptroller s Office. The Trust Company may obtain such legal, accounting, financial or other professional services as it deems necessary or appropriate to assist TexPool in meeting its goals and objectives. Section 2.06. Liability. Any liability of the Comptroller, the Comptroller's Office, the Trust Company, represen- tatives or agents of the Trust Company, any Comptroller employee, or any member of the Board for any loss, damage or claim, including losses from investments and transfers, to the Participant shall be limited to the full extent allowed by applicable Laws. The Trust Company's responsibilities hereunder are limited to the management and investment of TexPool and the providing of reports and information herein required. ARTICLE III. PARTICIPATION REQUIREMENTS Section 3.01. The Participation Agreement. The Participant must execute this Agreement and provide a Resolu- tion authorizing participation in TexPool and designating persons to serve as Authorized Representatives of the Participant and any other documents as are required under, and substantially in the form prescribed by, the Operating Procedures before depositing any funds into TexPool. Section 3.02. Operating Procedures. (a) The Participant acknowledges receipt of a copy of the Operating Procedures. The Operating Procedures describe in detail the procedures required for the establishment of accounts, deposits to and withdrawals from TexPool, and related information. (b) The Operating Procedures may be modified by the Trust Company as appropriate to remain consistent with established banking practices and capabilities and when such modification is deemed necessary to improve the operation of TexPool. (c) The Participant hereby concurs with and agrees to abide by the Operating Procedures. ARTICLE IV. INVESTMENTS Section 4.01. Investments. All monies held in TexPool shall be invested and reinvested by the Trust Company or Authorized Representatives of the Trust Company only in Authorized Investments in accordance with the Agreement, the Investment Policy and the Investment Act. Participant hereby concurs with any such investment so made by the Trust 3 Company. TexPool's available funds that are uninvested may be :teld at the Trust Company's account at the Federal Reserve Bank of Dallas or any designated custodian account. All investment as and collateral will be in the possession of the Trust Company and held in its book -entry safekeeping account at the Federal Reserve Bank or any designated custodian account. Section 4.02. Failed Investment Transactions. In the extraordinary event that a purchase of securities results in a failed settlement, any resulting uninvested funds shall remain in the Trust Company's Federal Reserve Bank of Dallas account or any designated custodian account. If an alternative investment can be secured after the failure of the trade to settle, TexPool will receive all the income earnings, including but not limited to, any compensation from the purchaser failing in the trade and the interest income from the alternative investment. Section 4.03. Investment Earnings and Losses Allocation. All interest earnings in TexPool will be valued daily and credited to the Participant's Accounts monthly, on a pro rata allocation basis. All losses, if any, resulting from the investment of monies in TexPool shall also be allocated on a pro rata allocation basis. All earnings and losses will be allocated to the Participants Accounts in accordance with generally accepted accounting procedures. Section 4.04. Commingling of Accounts. Participant agrees that monies deposited in TexPool may be com- mingled with all other monies held in TexPool for purposes of common investment and operational efficiency. However, each Participant will have separate Accounts on the books and records of TexPool, as further provided for in the Operating Procedures. ARTICLE V. FEES, EXPENSES AND REPORTS Section 5.01. Fees and Expenses. The Participant agrees to pay the amount set forth in the fee schedule. Partici- pant agrees that all fees shalt be directly and automatically assessed and charged against the Participant's Accounts. The basic service fee shall be calculated as a reduction in the daily income earned, thus only the net income shall be credited to the Participant's Account. Fees for special services shall be charged to each Participant's account as they are incurred or performed. A schedule of fees shall be provided to the Participant annually. Each Participant will be notified thirty (30) days prior to the effective date of any change in the fee schedules. Section 5.02. Reports. The Participant shall be provided a monthly statement within the first five (5) business days of the succeeding month. The monthly statement shall include a detailed listing of the balance in the Participant's Accounts as of the date of the statement; all account activity, including deposits and withdrawals; the daily and monthly yield information; and any special fees and expenses charged. Additionally, copies of the Participant's reports in physical or computer form will be maintained for a minimum of three prior fiscal years. All records shall be available for inspection at all reasonable hours of the business day and under reasonable conditions. Section 5.03. Confidentiality. The Trust Company and any private entity acting on behalf of the Trust Company for purposes of this Agreement will maintain the confidentiality of the Participant's Accounts, subject to the Public Infor- mation Act, TEX. GOVT CODE ANN. ch. 552, as amended 4 Section 6.01. Notices. Any notices, Letters of Instructions or other information required or permitted to be given hereunder shall be submitted in writing and shall be deemed duly given when deposited in the U.S. mail postage prepaid or successfully transmitted via facsimile addressed to the parties as follows: To the Participant: Participant Name: City of Round Rock Address: 221 E. Main Street City, State, Zip: Round Rock, Texas 78664 Telephone: 512/218 -5400 Fa 512/218 -5442 To the Trust Company: Texas Treasury Safekeeping Trust Company Attn: TexPool P.O. Box 12608 Austin, Texas 78711- 2608 Telephone No. (512) 463 -2950 FAX No. (512) 463 -0823 The Participant and the Trust Company agree to notify the other of any change affecting this information and agree that unless and until so notified, the other party shall be entitled to rely on the last information provided. Section 6.02. Taxpayer Identification Number. The Participant's taxpayer identification number assigned by the Internal Revenue Service is: 74 6017485 . The Participant hereby agrees to notify the Trust Company of any change affecting this Taxpayer Identification number and agrees that unless and until so notified, the Trust Company shall be entitled to rely on same in providing any and all reports or other information necessary or required by the Federal tax laws as amended from time to time. Section 6.03. Severability. If any provision of this Agreement shall be held or deemed to be in fact illegal, inopera- tive or unenforceable, the same shall not affect any other provision or provisions herein contained or render the same invalid, inoperative or unenforceable to any extent whatsoever. Section 6.04. Execution of Counterparts. This Agreement may be simultaneously executed in several separate counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 6.05. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any dispute under this Agreement shall be in Travis County, Texas. Section 6.06. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions, articles or sections of this Agreement Section 6.07. Amendments. ARTICLE VI. MISCELLANEOUS (a) The Trust Company shall advise the Participant in writing of any amendments to this Agreement no less than 45 days prior to the effective date of such amendment. The Participant may ratify the proposed amendment of this Agreement by letter to the Trust Company. In the event the Participant elects not to ratify the amendment, the Participant may terminate this Agreement in accordance with Section 6.08. In the event the Participant fails to respond in writing to a notice of amendment prior to the effective date of such amendment, this Agreement shall be deemed amended. (b) The Trust Company may periodically revise the Operating Procedures from time to time as it deems necessary for the efficient operation of TexPool. The Participant will be bound by any amendment to the Operating Procedures with respect to any transaction occurring subsequent to the time such amendment takes effect, provided, however, that no such amendment shall affect the Participant's right to cease to be a Participant. 5 Section 6.08. Termination. This Agreement may be terminated by either party hereto, with or without cause, by tendering 30 days prior written notice in the manner set forth in Section 6.01 hereof. Section 6.09. Tenn. Unless terminated in accordance with Section 6.08, this Agreement shall be automatically renewed on each anniversary date hereof. Section 6.10. Assignment The Trust Company may enter into an agreement with a third party investment man- ager to perform its obligations and services under this Agreement, provided that such third party investment manager shall manage TexPool according to the Investment Act, Investment Policy and in a manner consistent with that directed by the Trust Company. The Trust Company also shall have the right to assign its rights and obligations under the Agreement to a third party investment manager if the Trust Company determines that such assignment is in the best interest of the State and Participants. In the event a successor pool to TexPool is deemed by the Trust Company to be in the best interest of the State and the Participant, the Trust Company may take any action it deems necessary to assign its rights and benefits under any third party agreements and transfer the assets from TexPool to any successor pool. The Trust Company will provide advance written notice to Participant before any such assignment. In Witness Whereof, the parties hereto have caused this Agreement to be executed as of the dates set forth below, and the Agreement shall be effective as of the latest such date. PARTICIPANT TEXAS TREASURY SAFEKEEPING TRUST COMPANY By: Name: Title: Mayor Date: October 24, 1996 Charles Culpepper By: Comptroller of Public Accounts By: Name: - Title: Date: 6 I Charles Culpepper duly appointed, acting, and qualified of the City of Round Rock An Investment Service for Public Funds CERTIFICATE OF INCUMBENCY Mayor hereby certify that I am the I am authorized to execute and deliver this Certificate, and I do hereby further certify as follows: Charles Culpepper Mayor INCUMBENCY Signature Title Assistant City Manager /City Secretary and that The following person is the duly appointed, acting, and qualified officer of the City of Round Rock who, in the capacity set forth below is authorized to execute the TexPool Participation Agreement. NAME TITLE IN WITNESS WHEREOF, I have duly executed this certificate as of the 24th day of October 19 �. 1L/L /L1 / i 00.127 (496) I. Establishment of Accounts TEXPOOL OPERATING PROCEDURES A. To open an initial TexPool account, the following documents are required: 1. Resolution a. The Resolution must be adopted by the governing board of the Participant, authoriz- ing the use of TexPool to invests funds on behalf of the Participant. b. The Resolution must also designate up to three (3) officers, employees or other agents of the Participant as "Authorized Participant Representatives ". Designated Authorized Participant Representative are authorized to transfer funds to the Trust Company for investment in TexPool and are further authorized to withdraw funds from time to time, to issue letters of instructions, and take all other actions deemed necessary or appropriate for the investment of local funds. c. A Resolution and a sample are enclosed with the enrollment packet. a 2. Certificate of Incumbency a. The Certificate of Incumbency certifies that a person who signs the Participation Agreement is authorized to execute the Agreement. b. The official/officer signing the Participation Agreement must provide a specimen signature on the Certificate of Incumbency. c. The official/officer executing the Certificate of Incumbency must be someone other than the one signing the Participation Agreement. d. A Certificate of Incumbency and a sample are enclosed with the enrollment packet. 3. Participation Agreement a. The Participation Agreement is the contract between the Participant and the Comp- troller of Public Accounts, and defines the duties and responsibilities of the parties. b. The Participation Agreement must be executed in accordance with the Resolution and the Certificate of Incumbency. 4. Bank Information Sheet a. The Bank Information Sheet authorizes and provides TexPool with the necessary information for the establishment of a specific account. A separate Bank Informa- tion Sheet with the signatures of two (2) Authorized Participant Representatives must be completed for each account and subaccount. b. If ACH availability is desired, the back page of the Bank Information Sheet must be completed. 1 B. TexPool must receive all documents with original signatures at the following mailing address: Comptroller of Public Accounts TexPool P.O. Box 12608 Austin, Texas 78711 -2608 OR 200 E. 10th Street Austin, Texas 78701 C. Once the documents with original signatures are received: 1. The documents are reviewed by the TexPool staff and legal counsel. The approved documents are signed by the Comptroller of Public Accounts or Deputy Comptroller. If there are any problems or questions, the Participant will be contacted. 2. Participant's account numbers are assigned and the information is then entered in the TexPool systems. 3. Unique Personal Identification Numbers (PINs) are assigned to each Authorized Particpant Representative as indicated in the Resolution. An Account Information Re- port will be generated by TexPool which details the pertinent account information and numbers. . ._ 4. Documentation will ordinarily be processed within ten (10) business days of receipt. Copies of the original documentation including the Account Information Report, Wir- ing Instructions, PINs, and IVR and OnLAN instructions and transaction worksheet will be mailed to the Participant. D. Adding, Changing or Deleting Accounts. 1. Accounts may be added or changed by submission of a Bank Information Sheet, signed by two (2) Authorized Participant Representatives. 2. Accounts may be deleted or closed by submission of a Letter of Instruction signed by two (2) Authorized Participant Representatives. The Letter of Instruction should in- clude instructions on disposition of the fund balance, if any. E. Adding, Changing or Deleting Authorized Participant Representatives. 1. Authorized Participant Representatives may be added or changed by completing the Resolution Amending Authorized Representative form. Authorized Participant Repre- sentatives may be deleted by a letter signed by the remaining Authorized Participant Representives. 2 2. The Resolution Amending Authorized Representatives form must be signed by all remaining Authorized Participant Representatives and new Authorized Participant Rep- resentatives. This Resolution will supersede all prior resolutions. II. Transactions Procedures A. Wire Transfers 1. Notification: TexPool must be notified by 10:30 a.m. (central time) for all wire trans- fer activity. 2. Methods of Notification to TexPool of wire transfer activity: a. IVR - (Integrated Voice Response) telephone system b. OnLAN - (Local Area Network) computer access system c. Verbal notification by an Authorized Participant Representative to a TexPool staff person. Any verbal notification of a withdrawal must be followed by a Letter of Instruction signed by two Authorized Participant Representatives and faxed to TexPool. The original Letter of Instruction must be mailed to the TexPool office. 3. Information required for all wire transfer activity: All the information excluding PIN can be found on the TexPool generated Accounts Information Report. a. Location Number (5 digits) - Unique to each Participant. b. PIN Number (4 digits) - for one of the 3 authorized representatives. c. TexPool account numbers for wire transfers corresponding to a specific local de- pository account. Series and Fund numbers must be used jointly for each transac- tion. 4. Wire transfer withdrawals are sent in accordance with the prearranged information as provided on the Bank Information Sheet corresponding to that specific TexPool account or subaccount. TexPool must receive a Letter of Instruction signed by two (2) Authorized Representatives by fax before initiating a wire transfer withdrawal per verbal notification. An original Letter of Instruction must then be mailed to TexPool. 5. Wire transfer deposits must be sent by the Participant, by providing the following wiring instructions to the Participant's local depository: $Deposit Amount$ TX COMP AUSTIN ABA Routing 114900164 BNF TEXPOOL ACCT 440474002 Location - Series - Fund Participant Name 3 6. TexPool will attempt to contact the Participant or Participant's local depository repre- sentative if the wire transfer deposits have not been received by 1:00 p.m. (central time). 7. Wire transfer deposits received after 2:00 p.m. (central time) will not be invested until the following business day. The deposit will remain uninvested in the Trust Company's Federal Reserve ( "FED ") account or any designated custodian account and will be invested only after receiving new deposit instructions from the Participant. 8. Wire transfer deposits sent to TexPool without prior notification to TexPool through IVR, OnLAN, or aTexPool staff person may be rejected and returned to the originating local depository. TexPool will attempt to contact the Participant for investment in- structions, but is not obligated to do so. 9. In the event that an outgoing wire from TexPool is rejected back to the Trust Company's FED account due to incorrect wiring instructions, the Participant will be contacted for proper instructions as well as for additional approval from the Participant for releasing the wire transfer. A new or revised Bank Information Sheet will be required to correct future wiring instructions. 10. Outgoing wire transfers from TexPool are typically sent through the FED between 12:00 noon (central time) to 12:30 p.m. Some delay may occur, depending on unfore- seen circumstances. , 11. Transaction confirmations for wire transfers are generated every Thursday, and mailed to the Participant on Friday provided both are not bank holidays. B. Automated Clearing House ( "ACH") Transfers 1. TexPool must be notified by 2:00 p.m. (central time) for all ACH transfer activity one day prior to the actual settlement of the funds. 2. Methods of Notification to TexPool of ACH transfer activity: a. IVR - (Integrated Voice Response) telephone system b. OnLAN - (Local Area Network) computer access system c. Verbal notification to a TexPool staff person. Any verbal notification of a with- drawal must be followed with a Letter of Instruction signed by two Authorized Par- ticipant Representatives faxed followed by an original mailed to the TexPool office. 3. Information required for all ACH activity: a. Location Number (5 digits) - Unique to each Participant. b. PIN Number (4 digits) - for one of the 3 authorized representatives. 4 c. Series Number (4 digits) and Fund Number (3 digits) - Specified TexPool account numbers for ACH transfers corresponding to a specific local depository account. Series and Fund numbers must be used jointly for each transaction. 4. ACH transfer withdrawals are sent in accordance with the prearranged information as provided on the Bank Information Sheet corresponding to that specific TexPool ac- count or subaccount. TexPool must receive a Letter of Instruction signed by two (2) Authorized Representatives by fax before initiating a ACH withdrawal per verbal noti- fication. An original Letter of Instruction must then be mailed to TexPool. 5. It is not necessary to instruct the local depository of ACH activity. 6. If the Participant has elected not to utilize the ACH transfer availability as noted on the Bank Information Sheet, the ACH request will not originate and the Participant will be contacted. 7. TexPool will credit/debit the Participant's TexPool account for ACH activity the busi- ness day following the request. 8. In the event of an ACH rejection, TexPool will contact the Participant to confirm the rejection. TexPool will credit/debit the Participant's account accordingly including any interest eamed from the date of the ACH rejection. 9. Transaction confirmations for ACH transfers are generated every Thursday, and mailed to the Participant on Friday provided both are not bank holidays. C. TexPool Fee 1. TexPool charges { a fee based on an amount sufficient to reimburse the Trust Company for costs of administration. 2. The fee is calculated on `basis points ". One percent (1 %) is equal to 100 basis points and 1 basis point is equal to 1 /100 of a percent. 3. The TexPool basic service fee is eight (8) basis points annually, calculated daily on the TexPool fund balance. 4. The TexPool fee is deducted from the gross interest earning. There is no direct reduc- tion to the Participant's account. 5. All TexPool rates are quoted net of fees. There are no hidden costs or additional reduc- tion to Participants' accounts. 5 6. Any increase in the TexPool fee is subject to review and approval by the TexPool Advi- sory Board. The fee may only be increased with board approval and will be effective after 30 days notification to Participants. D. Integrated Voice Response System (IVR) Telephone Access 1. TexPool provides an instruction card for the IVR in the enrollment packet. 2. IVR utilizes a toll -free number for various TexPool services. The IVR services in- clude: a. ACH deposit - 21# b. ACH withdrawal - 22# c. Wire deposit - 31# d. Wire withdrawal - 32# e. Interfund transfer - 41# f. Current principal balance - 11# g. Daily message - 15# h. Deposits (last 3) - 12# i. Information - 10# j. Main Menu - 90# k. TexPool yield - 14# 1. Withdrawals (last 3) - 13# 3. The TexPool daily rate and allocation factor for the previous day are available by 9:00 a.m. (central time) each morning. E. OnLAN (Local Area Network) Computer Access 1. OnLAN is a software program available at no cost to TexPool Participants. 2. OnLAN requires a DOS based computer with a Modem 3. The TexPool enrollment packet includes an application for the OnLAN software pro- gram. The form requires specific information on the Participant's local computer sys- tem as well as telephone dialing information. 4. OnLAN utilizes a toll-free number for various TexPool services. The OnLAN services include: a. Wire Transfers i. Add a new wire transfer ii. Inquire on a wire transfer iii. Delete a wire transfer b. ACH Transfers i. Add a new ACH transfer ii. Inquire on a ACH transfer iii. Delete a ACH transfer 6 F Reports c. Transaction Inquiry for each series and fund. d. Current balance for each account and subaccount. e. Interfund transfers f. TexPool general information i. TexPool total fund balance ii. TexPool daily rate and allocation factor iii. TexPool phone numbers iv. TexPool system messages g. Account confirmations and reports can be printed locally h. Preload for wire transfers (internal transfer also) i. Preload for ACH transfers j. TexPool Portfolio can be printed locally 1. Monthly statements detailing the previous month's activity will be mailed on or about the fifth Business Day of the following month. 7 DATE: October 22, 1996 SUBJECT: City Council Meeting, October 24, 1996 ITEM: 10. E. Consider a resolution authorizirig the Mayor to execute a participation agreement with the Texas Local Govemment Investment Pool (TEXPOOL). STAFF RESOURCE PERSON: David Kautz The City currently invests funds with TEXPOOL as authorized under state law. The purpose of this new participation agreement is to reflect the merger of TEXPOOL with the State Comptroller's Office. Additionally, the participation agreement incorporates current statutory references resulting from recent amendments to the Public Funds Investment Act. This agreement does not create substantive changes to the City's investments or investment transactions. TEXPOOL is currently rated 'AAAm' as an investment pool by Standard and Poor's, the highest money market rating available. Staff recommends approval.