ORDER NO. 30713 PARTICIPATION IN TEXPOOL AND DESIGNATING AUTHORIZED REPRESENTATIVE Came to be heard this the 28th day of January, 2008, with a motion made by Commissioner Baldwin, seconded by Commissioner Letz. The Court unanimously approved by vote of 4-0-0 to: Participate and authorize the Resolution upon joint authorization of the Treasurer and the Auditor. ~07J3 ~,~1 COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN (10) COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT MADE BY: Jeannie Hargis MEETING DATE: January 28, 2008 OFFICE: Auditor's Office TIME PREFERRED: SUBJECT: Consider, Discuss and Take Appropriate Action to authorize participation in TexPool and Designating Authorized Representative. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Jeannie Hargis ESTIMATED LENGTH OF PRESENTATION: 2 Minutes IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS RQUEST RECEIVED ON: 5:00 PM previous Tuesday @ .M. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. ~, tl -..,~ 90.6 K ~_.,~ ~h' ~~' ~~~~~~~ i3xa Ye~.vea~rtet$t Scrvlcc fnr l~astsite F`~ax~r3~ Resolution Authorizing Participation in TexP ool and Designating Authorized Representatives WHEREAS, I l ~ P~~ ~L, t~:`T1/ ~ ~ X ~ S ("Participant") is a local government or state agency of the State of Texas and is empowered to delegate to the public funds investment pools the authority to invest funds and to act as custodian of investments purchased with local investment funds; and WHEREAS, it is in the best interest of the Participant to invest local funds in investments that provide for the preservation and safety of principal, liquidity, and yield consistent with the Public Funds Investment Act; and WHEREAS, the Texas Local Government Investment Pool; ("TexPool"), public funds investment pools, were created on behalf of entities whose investment objectives in order of priority are preservation and safety of principal, liquidity, and yield consistent with the Public Funds Investment Act. NOW THEREFORE, be it resolved as follows: A. That Participant shall enter into a Participation Agreement to establish an account in its name in TexPool, for the purpose of transmitting local funds for investment in TexPool. B. That the individualg, whose signatures appear in this Resolution, are authorized representatives o#'the Participant and are}~~h~rveby authorized to transmit funds for investment in TexPool and are? ~tf~'ther authorized to withdraw funds from time to time, to issue letters of instruction, and to take all other actions deemed necessary or appropriate for the investment of local funds. List the authorized representatives of the Participant. These individuals will be issued Personal Identification Numbers (PIN'S) to transact business via the phone with a Participant Services Representative. . Name: Paula J. Hargis Title: Kerr County Auditor Phone/Fax/Email: g30-792-2235/830-792-2238/-jharais@co kerr.tx.us Signature: 2. Name: Mindy L. Williams Title: Kerr County Treasurer Phone/Fax/Email: 830-792-2275/830-257-9228/williams@co.kerr.tx. us ~~ ,~ .. _ Signature: ~ r~.~7°~L~i:~~~,~ 3. Name: Title Phone/Fax/Email: Signature: ORIGINALS REQUIRED TEX - ENROLL TexPool Participant Services • Lehman Brothers 600 Travis St., Suite 7200 • Houston, TX 77002 • wv,~-.texnooLcom • 1-866-839-7665 4/04 4. Name: Title: Phone/Fax/Email: Signature: List the name of the Authorized Representative provided above that will have primary responsibility for performing transactions and receiving confirmations and monthly statements under the Participation Agreement. Name: In addition and at the option of the Participant, one additional authorized representative can be designated to perform inquiry only of selected information. This limited representative cannot make deposits or withdrawals. If the Participant desires to designate a representative with inquiry rights only, complete the following information. 5. Name: Title Phone/Fax/Email: C. That this resolution and its authorization shall continue in full force and effect until amended or revoked by the Participant, and until TexPool receives a copy of any such amendment or revocation. This esolution is hereby introduced and adopted by the Participant at its regular/special meeting held on the a Day of ~Iq N N F} (Ly , 20 ~~ NAP"" "T' PARTICII BY: Jann t Pieper, rr County_ Clerk ATTEST: BY Si ture Cheryl A, Thompson Printed Name Deputy Title OFFICIAL SEAL ORIGINALS REQUIRED ENROLL TEX - TexPool Participant Services • Lehman Brothers 600 Travis St., Suite 7200 • Houston, TX 77002 • w«~-_texnool.com • 1-866-83}7665 4/04 .-, .. . TEXA TEXAS TREASURY S_ TRUST SAFEKEEPING TRUST COMPANY C(l~ltPl';.~,.ti=.R.~ tiAN CY1+.ti.6S.CF1 .,,~ February 1 1, 2008 Mindy Williams Kerr Coumty 700 Main St., RM CB 103D Kerrville, Texas 78028 Dear Mindy, FED 1 3 2C~3 BY: With regret, I am returning the enrollment paperwork that was sent to TexPool for the following reasons: ^ Your signature is missing on the Bank Information Sheet ^ On the Resolution Authorizing Participation in TexPool and Designating Authorized Representatives, page 2 has a section that needs to be completed with the name of the person, either you or Paula Hargis, who will be the primary person on the account. I have marked the spot. • Page seven of the Participation Agreement was not signed by Cheryl A. Thompson. I have marked the spot where she needs to sign. ^ I need a copy of the si ned court order that documents the review and approval of the investment policy by Commissioner's Court. If you have any questions or need assistance, please feel free to give me a call. Sin er ly, c ~c^e~c~ .C'e2~tR/ Dianne Parker TexPool Participant Services Coordinator TexPool Participant Services, c/o Lehman Brothers, 600 Travis, Suite 7200, Houston, Texas 77002 Phone 1-866-839-7665. Fax 1-866-839-3291. www.texpool.com ~EX~®®L *********** An Investment Service for Public NWds Please check all that apply. a Add new account Q Wire and ACH ** Q Primary*** Add new Banking Instructions ~ Change Banking Instructions Delete Banking Instructions *Location Wire Only Primary*** ACH On-y** Primary*** 449lfEXPOOL *Pool # Account Number BANK INFORMATION SHEET *EFFECTIVE DATE: KERR COUNTY Participant ame 700 MAIN *Street Address 700 MAIN, RM CB103D *Mailing Address KERRVILLE TX 78028 KERR *City *State *Zip *County MINDY L. WILLIAMS *Primary Representative 830-792-2275 830-257-9228 *Phone *Fax KERR COUNTYTREASURER/TREAS ACCT willianis@co.kerr.tx.us *Account Name Email By initialing here I acknowledge that I have chosen TexPool -Prime and understand that it invests in comrnercial paper. I realize that this is consistent with my investment policy. nvsTRUCT10Ns *Bank Name SECURITY STATE BANK & TRUST *Bank Address 1130 JUNCTION HIGHWAY *City KERRVILLE *Texas Zip 78028 *Bank ABA No. 114921949 *County KERR *Bank Account No 1013531 *Bank Account Name Kerr County Treasurer/Treas Acct Bank Contact Ava Jones Credit Information Correspondent Bank (if any) Name/City Bank ABA Na: Account Name Account No. CONFIRM THE INSTRUCTIONS FOR WIRE AND ACH TRANSFERS WITH YOUR LOCAL BANK. ACH INSTRUCTIONS MAY VARY FROM YOUR BANK'S WIRING INSTRUCTIONS IF THE LOCAL BANK IS NOT ON-LINE WITH THE FEDERAL RESERVE. IF ACH INSTRUCTIONS DIFFER FROM WIRING INSTRUCTIONS, PLEASE COMPLETE AN ADDI110NAL BANK INFORMATION SHEET. **If ACH availability is selected, I hereby authorize State Street Bank to directly deposit and withdraw funds by means of ACH electronic transfer to and from the financial institution and the account designated above ("Designated Account"). I agree that this authorization may be withdrawn with at least 45-days advance written notice to TexPool Participant Services. I understand that the TYust Company reserves the right to discontinue ACH electronic transfer without advance notice. I also authorize State Street Bank to deduct from the Designated Account or from subsequent deposits made to the Designated Account all amounts deposited in error. In the event the Designated Account is closed or contains an insufficient balance to allow deduction for amounts deposited in error, I agree that State Street Bank may withhold any payments owing to me by the State of Texas until such amounts deposited in error aze repaid. Likewise, I authorize State Street Bank to credit all amounts withdrawn in error to Designated Account. *** If you have multiple wiring instructions attached to the same account you must select the applicable instructions for that transaction. Indicate if instructions referenced represent primary instructions by checking the appropriate box. Trades placed via EDCrEnet or the VRU wilt always be sent to the primary instructions. If you need funds wired to another set of instructions please call a Participant Service Representative. NOTE This authorization must be executed by two current Authorized Representatives of the Participant as set forth in the duly enacted Resolution of the Participant, which is on file with TexPool. As a current Authorized Rep esentative, 1 certify that the above information is both true and correct. ~}'~ - _ , _ INDY L. WILLIAMS TREASURER 2/1/08 A orized R esentati ,Signature *Printed Name Title Date ,u,~ PAULA J. HARGIS COUNTY AUDITOR 211 /08 Au horized R ~r entative S' nature *Printed Name Title Date ORIGINALS REQUIRED *REQUIRED FIELDS TEX -BANK TexPool Participant Services• Lehman Brothers 600 Travis St., Suite 7200• Houston, TX 77002 • www.texpool.com Phone 1-866-839-7665 •Fax t-S66-839-3291 9/06 1 .aex lca.v~W:e~ac,,..~ S~rxcr~ ic;i Y'te~sl2t r~~xxreta Resolution Authorizing Participation in TexPool and Designating Authorized Representatives WHEREAS, I l F_ ~Z~ ~~-` ~~~ ~ ~ X ~ ("Participant") is a local government or state agency of the State of Texas and is empowered to delegate to the public funds investment pools the authority to invest funds and to act as custodian of investments purchased with local investment funds; and WHEREAS, it is in the best interest of the Participant to invest local funds in investments that provide for the preservation and safety of principal, liquidity, and yield consistent with the Public Funds Investment Act; and WHEREAS, the Texas Local Government Investment Pools ("TexPool"), public funds investment pool;, were created on behalf of entities whose investment objectives in order of priority are preservation and safety of principal, liquidity, and yield consistent with the Public Funds Investment Act. NOW THEREFORE, be it resolved as follows: A. That Participant shall enter into a Participation Agreement to establish an account in its name in TexPool, for the purpose of transmitting local funds for investment in TexPool. B. That the individualS, whose signatures appear in this Resolution, are authorized representatives o#~ the Participant and are)~~i~i~~by authorized to transmit funds for investment in TexPool and are~~t~ther authorized to withdraw funds from time to time, to issue letters of instruction, and to take all other actions deemed necessary or appropriate for the investment of local funds. List the authorized representatives of the Participant. These individuals will be issued Personal Identification Numbers (PIN'S) to transact business via the phone with a Participant Services Representative. Name: Paula J. Hargis Title: Kerr County Auditor Phone/Fax/Email: g30-792-2235/830-792-2238/-jhargis@co.kerr.tx. us Signature: 2. Name: Mindy L. Williams Title: Kerr County Treasurer Phone/Fax/Email: 830-792-2?_75/830-7.57-9228/williams@co. kerr. tx. us ` i Signature: ~~ ~..G{.c. o , `TitiG~.(.~(-~'..,,.,.-+~ 3. Name: Title Phone/Fax/Email: Signature: ORIGINALS REQUIRED ENROLL TexPool Participant Services • Lehman Brothers 600 Travis St., Suite 7200 • Houston, TX 77002 • vvv~~-.texpool.com • 1-866-839-7665 TEX - 4/04 4. Name: Title: Phone/Fax/Email: Signature: List the name of the Authorized Representative provided above that will have primary responsibility for performing transactions and receiving confirmations and monthly statements under the Participation Agreement. Name: Mindy L Williams In addition and at the option of the Participant, one additional authorized representative can be designated to perform inquiry only of selected information. This limited representative cannot make deposits or withdrawals. If the Participant desires to designate a representative with inquiry rights only, complete the following information. 5. Name: Title Phone/Fax/Email: C. That this resolution and its authorization shall continue in full force and effect until amended or revoked by the Participant, and until TexPool receives a copy of any such amendment or revocation. Th~is~[esolution is hereby introduced and adopted by the Participant at its regular/special meeting held on the a 4~"'^Day of ~p N N H (Ly , 20 ~~ NAME OF PARTICIPANT: I~~-fiZ.R ~C:'t"1 ~`/ ~ '\ BY: Si Printed Name ~-~ Title Jann t ??ieper, rr County Clerk ATTEST: BY: Sig ture Cheryl A, Thompson Printed Name Denut~~ Title OFFICIAL SEAL ORIGINALS REQUIRED TEX - ENROLL TexPool Participant Services • Lehman Brothers 600 Travis St., Suite 7200 • Houston, TX 77002 • vv~~~-.texpool.com • 1-866-837665 4/04 Texas Local Government Investment Pool TexPool Participation Agreement PREAMBLE This participation agreement (the "Agreement") is made and entered into by and between the Comptroller of Public Accounts (the "Comptroller"), acting through the Texas Treasury Safekeeping Trust Company (the "Trust Com any" Trustee of the Texas Local Government Investment Pool (TexPool), and KEF~R C~UNTY (the "Participant"). WHEREAS, the Interlocal Cooperation Act, TEX GOVT CODE ANN, ch. 791 and the Public Funds Investment Act, TEX. GOVT CODE ANN. ch. 2256 (the "Acts") provides for the creation of a public funds investment pool to which any local government or state agency may delegate, by contract, the authority to hold legal title as custodian and to make investments purchased with local funds; WHEREAS, the Trust Company is a special purpose trust company authorized pursuant to TEX. GOVT 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; WHEREAS, the Participant has detei7nined that it is authorized to invest in a public funds investment pool created under the Acts and to enter into this Agreement; WHEREAS, the Participant acknowledges that the Trust Company is not responsible for independently verifying the Participant's authority to invest under the Acts or to enter this Agreement; WHEREAS, the Participant acknowledges that the performance of TexPool is not guaranteed by the State of Texas, the Comptroller, or the Trust Company; 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 enhancement in services and potential decreases in management and administrative fees, Participant and Trust Company desire to provide in this Agreement that the Trust Company may obtain private professional investment management and related services. NOW THEREFORE, for and in consideration of the mutual promises, covenants and agreements herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree with each other as follows: ORIGINALS REQUIRED Page 1 TEX -ENROLL ARTICLE I. DEFINITIONS "Account" shall mean any account or 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 or Trust Company who is designated in writing by the Comptroller or the Trust Company's Chief Executive Officer to act as the authorized Trust Company representative for purposes of this Agreement and shall include employees of any private entity performing the obligations of the Comptroller under this Agreement. "Board" shall mean the advisory board provrled 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 from 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 Instruction" 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 '1 exPool, 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 executed this Agreement pursuant to a Resolution. "Resolution" shall mean the resolution adopted by the governing body of a local governmental entity authorizing the entity's participation in TexPool and designating persons to serve as Authorized Representatives of the Participant. ORIGINALS REQUIRED Page 2 TEX -ENROLL ARTICLE II. GENERAL ADMINISTRATION Section 2.01. TexPool Defined. (a) TexPool is a public funds investment pool created pursuant to the Acts. (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. 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 Agreement. (c) The Trust Company shall have the power to take any action necessary to carry out the purposes of this Agreement, subject to applicable law and the terms of this 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 Ch. 2256, TEX GOVT CODE ANN. In addition, reviews of TexPool may be conducted by the State Auditor's Office and 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, representatives or agents of the Trust Company, any Comptroller employee, Trust Company 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. ORIGINALS REQUIRED Page 3 TEX -ENROLL ARTICLE III. PARTICIPATION REQUIREMENTS Section 3.01. The Participation Agreement. The Participant must execute this Agreement and provide a Resolution 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 Company. TexPool's available funds that are uninvested may be held at the Trust Company's account at the Federal Reserve Bank of Dallas, or any designated custodian account, or with a custodian selected by the Trust Company. All investment assets and collateral will be in the possession of the Trust Company and held in its book- entry safekeeping account at the Federal Reserve Bank, any designated custodian account, or with a custodian selected by the Trust Company. Section 4.02. Failed Investment Transaction. 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 Bank of Dallas account, any designated custodian account or with a custodian selected by the Trust Company. 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 Participant's Accounts in accordance with generally accepted accounting procedures. Section 4.04. Commingling of Accounts. Participant agrees that monies deposited in TexPool may be commingled 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. ORIGINALS REQUIRED Page 4 TEX -ENROLL 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. Participant agrees that all fees shall 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 schedule. Section 5.02. Reports. A monthly statement will be mailed to the Participant 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 Information Act, TEX GOVT CODE ANN. ch. 552, as amended. ARTICLE VI. MISCELLANEOUS 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 Address City, State, Zip KERR COUNTY 700 MAIN, ROOM CB103D KERRVILLE, TX 78028 Telephone 830-792-2275 Fax 830-257-9228 To Trust Company with respect to contractual matters or disputes under this Agreement: Texas Treasury Safekeeping Trust Company Attn: TexPool Rusk State Office Building 208 East 10`h Street Austin, TX 78701 Telephone: (512) 463-3716 FAX No.: (512) 463-0823 ORIGINALS REQUIRED Page 5 TEX -ENROLL To TexPool with respect to operational matters, including enrollment documents; changes to Authorized Representatives; Bank Information Sheets; initiation of deposits or withdrawals of fiords; changes to addresses; audit confirmation requests; and account inquiry: TexPool Participant Services C/O Lehman Brothers Attn: Participant Services 600 Travis St., Suite 7200 Houston, TX 77002 Telephone: 1-866-839-7665 (1-866-TEX-POOL) FAX No.: 1-866-839-3291 (1-866-TEX-FAX1) 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: 74-6001494 .The Participant hereby agrees to notify the Trust Company of any change affecting this Taxpayer Identification number and agrees that unless and until so notifies, 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, inoperative 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 defined, limit or describe the scope or intent of any provisions, articles or sections of this Agreement. Section 6.07. Amendments. (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. If 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. 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. Term. Unless terminated in accordance with Section 6.08, this Agreement shall be automatically renewed on each anniversary date hereof. ORIGINALS REQUIRED Page 6 TEX -ENROLL Section 6.10. Assignment. The Trust Company may enter into an agreement with a third party investment manager to perform its obligations and service 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. 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 Signature ~ Printed Name PAT TINLEY Title COUNTY JUDGE Date FEBRUARY 1, 2008 CERTIFICATE OF INCUMBENCY The preceding signatory is a duly appointed, acting, and qualified officer of the Participant, who, in the capacity set forth above is authorized to execute this Agreement. IN WITNESS WHEREOF, I have duly executed this certificate as of the 1 ST day of FEBRUARY 20 08 . Signature ON Comptroller of Public Accounts Signature Printed Name Title Date Printed Name CHERYL A. TROMPS Title DEPUTY COUNTY CLERK OFFICIAL SEAL ORIGINALS REQUIRED Page 7 TEX -ENROLL ~. ORDER NO. 30508 KL:RR COl1NTY INVESTMENT POLICY Came to be heard this the IOth day of September, 2007, ~~ith a motion made by Commissioner Williams, seconded by Commissioner I.etr. `f'lee Court ~manimously approved by vote of 4-0-0 to: npprove of the Inveshnent Policy as presented by the Auditor ~+nd the County Crcasurer. t ~QJ Q~ i •~ ~D COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN (101 COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT 'tirr MADE BY: Jeannie Hargis OFFICE: County Auditor MEETING DATE: September 10, 2007 TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action on Kerr County Investment Policy. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Jeannie Hargis ESTIMA"I~ED LENGTH OF PRF,S};NTATION: IF PERSONNF,L MATTER - NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 PM previous Tuesday THIS REQUEST RECEIVED BY: THIS RQUEST RECEIVED ON: @ .M. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will he appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. `~ Kerr County, Texas Investment Policy Court Order 30508 Date i. General Policy It is the policy of Kerr County (the "County's to administer its funds and the investment of those funds, as its highest public trust. The funds shall be invested in a manner, which provides for maximum safety of principal through risk management and diversification while meeting the County's daily cash needs. The investment of the County's funds should provide a reasonable investment return. The earnings from investment will be used in a manner that best serves the interests of the County. The County shalt administer its investment activities in conformance with the Public Funds Investment Act, Chapter 2256, Texas Government Code (the "Act"), the Public Funds Collateral Act (Texas Government Code, Chapter 2257) and in conformance with any applicable state and federal regulations, applicable bond resolution requirements, and this Investment Policy. 2. Scope This Investment Policy governs the investment of all financial assets of the County as accounted for in the County's Comprehensive Annual Financial Report. This includes the available financial assets of the following funds: a. general fund, b. special revenue fund, c. trust and agency funds, to the extent not required by law or existing contract to be kept segregated and managed separately, d, debt service fund, including reserve and sinking funds, to the extent not required by law or existing contract to be kept segregated and managed separately, and e. any new fund created by the County, unless specifically exempted from this Policy by the County or by law. 3. Goals and Objectives Investment of County funds shall be governed by the following investment objectives, in their order of priority: a. Safety Safety of principal is the foremost objective of the investment program of the County. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital and avoids security defaults or erosion of market values. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. b. liquidity The County's investment portfolio will remain sufficiently liquid to enable the County to meet all operating requirements that might be reasonably anticipated. Ongoing cash flow analysis will be used to identify changing liquidity needs. A reasonable amount of demand deposits or other liquid investments should be maintained to avoid the need to liquidate securities prior to maturity. To the extent possible, the County will attempt to match its investment maturities with anticipated liabilities and cash flow requirements. Unless matched to a specific cash flow requirement, the County will not directly invest in any securities maturing more than three (3) year from the date of purchase. Such specific cash flow requirements would include operating funds, construction funds, and debt service funds. To reFled the cash Flow requirements and risk tolerance levels of the County, the weighted average maturity of the overall portfolio shall not exceed six (6) months. c. Diversification In order to minimize investment and market risk, the County will diversify its investments by market sector (security type) and maturity. The portfolio will be designed to avoid unreasonable risks within one market sector or from an individual financial institution. Yield The County's investment portfolio shall be designed with the objective of attaining a reasonable rate of return throughout budgetary and economic cycles, commensurate with the County's investment risk constraints and the cash flow characteristics of the portfolio. The portfolio(s) risk shall be measured periodically against a benchmark based on cash flow analysis and the authorized portfolio structure. The overall portfolio shall have a maximum weighted average maturity of six (6) months. To measure the overall risk of the portfolio, a benchmark of the six- month Treasury Bill shall be reported. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The County shall maintain a cash management program, which includes collection of accounts receivable, prudent investment of its available cash, disbursement of payments in accordance with invoice terms and the management of banking services. 4. Investment Strategy The portfolio will be designed on projected cash flows to provide for all anticipated liquidity needs of the County. Investments are to be chosen in a manner, which promotes portfolio diversity, by market sector, credit and maturity. The choice of high-credit quality government investments and high-grade, money market instruments are designed to assure the marketability of those investments should liquidity needs arise. The investment process shall be designed to produce a reasonable return commensurate with low- risk securities and designed to meet cash flow demands. The County may commingle its funds for maximum investment efficiency and maintain an internal investment pool for use by all funds under this Policy, The unique needs of each fund in the pool will be recognized in the management of the funds. All County funds will be included in the pool unless otherwise required by the County Council, state or federal regulations, or applicable bond resolution requirements. a. Operating funds and commingled pools containing operating funds have as their primary objective to assure that anticipated cash flow needs are met with adequate investment liquidity. The secondary objective is to obtain a reasonable yield with minimal volatility. This may be accomplished by purchasing high credit quality securities matched to known liabilities. A maximum dollar weighted average maturity of six (6) months will be established based on the stated final maturity date of each security. b. Debt service funds shall be invested to ensure adequate funding for each consecutive debt service payment. Funds shall be invested in such a manner so as not to exceed an "unfunded" debt service date with the maturity of any investment. (An unfunded debt service date is defined as an interest or principal payment date that does not have cash or investment maturities targeted to satisfy said payment.) The maximum dollar weighted average maturity of such funds shall be six (6) months. c. Capital project or special purpose funds shall have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. These portfolios should include at least 10% in liquid securities to allow for Flexibility and unanticipated project outlays. The stated final maturity dates or securities held should not exceed the estimated project completion date. 5. Investment OfFcers The County Treasurer is authorized by Commissioner's Court to administer the investment activities of the County and, is designated as Investment Officer for the purposes of this Policy. Upon recommendation of the Commissioners Court, the Court may designate one or more additional qualified employees, or an SEC Registered Investment Adviser, as Investment Officer(s). The designation of additional Investment Officers shall be by court order, or award of contract. Authority and designation as Investment Officer is effective until rescinded by the Commissioner's Court (Court Order) or until termination of employment. All Investment Officers shall be familiar with this Policy and its underlying procedures. No Investment Officer may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Commissioner's Court. A trading resolution is established by adoption of this Investment Policy authorizing the Investment Officer(s) to engage in investment transactions on behalf of the County. The persons so authorized to transact business are also authorized to approve wire transfers used in the process of investing. Training All Investment Officer(s) shall attend ten (10) hours of training in accordance with the Act within twelve (12) months of assuming responsibilities and attend ten (10) hours of training each successive two-year period. Training shall be provided or endorsed by the Government Finance Officers Association of Texas, the Government Treasurers Organization of Texas, or the Texas Municipal League. Training should include topics such as investment controls, security risk, market risks, diversification of the investment portfolio, and compliance with State laws. 6. Standard of Care The standard of care to be used by the County's Investment Officers shall be the "prudent person standard" and shall be applied in the context of managing the overall portfolio, rather than a consideration as to the prudence of a single investment. The standard states: Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the probable safety of the capital as well as the probable income to be derived. Investment Officers acting in accordance with the Investment Policy and exercising due diligence, shall be relieved of personal liability for an individual security's credit risk or market price change, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments. Standard of Ethics Investment Officers shall act as custodians of the public trust and avoid any transaction that might involve a conflict of interest or the appearance of a conflict of interest, or any activity that might otherwise discourage public confidence. Investment Officers shall refrain from personal business activity that could conFlict with proper execution of the investment program or that could impair their ability to make impartial investment decisions. An Investment Officer who has a personal or business relationship with an individual or organization seeking to sell an investment to the County shall file a disclosure statement with the Texas Ethics Commission and the Commissioner's Court in accordance with the Act. 8. Investment Advisors and Broker/Dealers The County recognizes that all investment decisions regarding the County's portfolio are ultimately the responsibility of the Commissioner's Court and its Investment Officers. However, all investment advisors and broker/dealers conducting business with the County shall make every reasonable effort to adhere to the spirit, philosophy, and specific terms of this Investment Policy. All investment advisors and broker/dealers shall avoid recommending or suggesting transactions outside the spirit, philosophy, and specific terms of this Investment Policy. The county shall not enter into any investment transaction with an investment advisor or broker/dealer prior to receiving the written instrument described below. a. Broker/Dealers A list of not less than five broker/dealers shall be maintained to assure a competitive process. Investment Officers will establish the criteria, monitor the service, and evaluate the broker/dealers based on their: 1. adherence to the County's policies and strategies, 2. transaction pricing, 3. responsiveness to the County's requests for service and information, 4. the quality of communications, and 5. understanding of the inherent fiduciary responsibility of public funds. Financial institutions and broker/dealers who desire to transact business with the County must supply the following documents to the Investment Officer or Investment Adviser (as applicable): • Current year audited financial statements • National Association of Securities Dealers (NASD) certification and NASD's Central Depository Registration (CRD) number. • Proof of Texas State Securities registration. Broker/dealers shall also provide timely trade documentation and confirmations. Certification Before transacting any business with the County, the County Treasurer shall present broker/dealers, or any firm attempting to sell financial transactions to the County, with a current copy of the County's Investment Policy and an authorized representative of the firm shall, in writing to the County, certify substantially to the effect that: 1, the firm and representative has received and reviewed the County's Investment Policy, and 2. the firm has implemented reasonable procedures and controls to preclude investments with the County not authorized by the Policy. If material changes are made to the Investment Policy and updated copy shall be provided to the authorized broker/dealers for re-certification. b. Investment Adviser Investment advisers shall be required to be registered with the U.S. Security and Exchange Commission and shall provide their SEC ADV Form to the County on an annual basis. The County Treasurer shall present investment advisers with a current copy of the County's Investment Policy and an authorized representative of the firm shall, in writing, certify substantially to the effect that: 1. the applicable advisers have received and reviewed the County's Investment Policy, and 2. the firm has implemented reasonable procedures and controls to preclude investments with the County not authorized by the Policy. The County shall not enter into any investment transaction with an investment advisor or broker/dealer prior to receiving the written instrument described above. 9. Authorized Investments Authorized investments under this Policy shall be limited to the instruments listed below and as further described by the Act. a. Obligations of the United States Government, its agencies and. instrumentalities, excluding mortgage backed securities, with a stated final maturity not to exceed three (3) years. b. Fully collateralized or insured certificates of deposit from banks doing business in Texas with a final stated maturity not to exceed twelve (12) months, Certificates of deposit shall be; 1. guaranteed or insured by the Federal Deposit Insurance Corporation or its successor, or 2. secured by obligations as defined by this Policy, and 3. governed by a written Depository Agreement that complies with federal and state regulations for properly securing a pledged security interest. ~c. Commercial paper rated Al/Pl or its equivalent by two (2) nationally recognized rating agencies and with a final stated maturity not to exceed ninety (90) days. d. SEC registered money market mutual funds, striving to maintain a $1 net asset value, continuously rated not less than AAA or equivalent by at least one nationally recognized rating firm. / e. Constant-dollar, Texas Local Government Investment Pools, approved by resolution of the Commissioner's Court and conforming in every respect to the Act. The County shall not invest, in the aggregate, more than 75 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in approved investment pools. The County shall not invest its funds, including bond proceeds and reserves and other funds held for debt service, in any investment pool where the County's investment exceeds 5 percent of the total assets of the pool. f. Fully collateralized repurchase agreements transacted with a primary securities dealer as defined by the Federal Reserve, under a written Bond Market Association Master Repurchase Agreement, with a defined termination date, secured by obligations as defined by this Policy held by an independent third party custodian approved by the County, and with a stated final maturity not to exceed ninety (90) days. This authorization includes flexible repurchase agreements ("flex repos") to be utilized only in the investment of bond proceeds vrith a stated final maturity not to exceed the expenditure plan on the bond proceeds. g. Fully collateralized or insured demand deposit accounts at authorized County depositories, under the provisions of a written collateral/depository agreement. Unauthorized Securities The County is not authorized to invest in the following securities: 1. Interest-Only mortgaged backed securities (IO) whose payment represents only the coupon payments on outstanding principal balances of underlying mortgage. 2. Principal only mortgage backed securities (PO) whose payment represents only the principal stream from underlying mortgages. 3. Collateralized mortgage obligations (CMO) with a stated final maturity date of greater than ten (10) years. 4. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the change in a market index. If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment by the County until this policy has been amended and the amended version adopted by the Commissioner's Court. Delivery versus Payment All security transactions shall be transacted on a delivery versus payment (DVP) basis through the County's depository bank in order to assure that the County has total control of its investments and its funds at all times. Competitive Bidding All investment transactions, including certificates of deposit, will be made on a competitive basis to assure that the County is receiving fair market prices. 10. Collateralization Consistent with the requirements of the Act and the Pubic Funds Collateral Act, the County shall require collateral on all repurchase agreements and all time and demand deposits above the limits of federal insurance. Time and Demand Deposits -Pledged Collateral Financial institutions serving as County depositories will be required to execute a Depository Agreement with the County outlining, among other conditions, collateral conditions and limitations. The Agreement shall define the County's rights to the collateral in case of default, bankruptcy or closing. Collateral authorized by the County will be limited to the following 1. Obligations of the US Government, its agencies and instrumentalities, including mortgage backed securities, which pass the bank test. 2. Obligations of any Us state, their agencies and instrumentalities, and municipalities rated A or better by two nationally recognized rating agencies. Collateral pledged to the County must be maintained with a margin of 102% of the time or demand amounts being collateralized. The banking institution shall be held contractually liable for monitoring and maintaining the required margins at all times. All collateral shall be held by an independent third party banking institution outside the holding company of the pledging bank. A clearly marked evidence of ownership (safekeeping receipt) must be provided to the County for all securities pledged and must clearly state that the security is pledged to the County. Substitution of collateral shall only be made after prior written approval by the County. The pledging institution shall be responsible for providing a monthly report on pledged collateral listing at a minimum, the security description, cusip, par value, maturity date, and current market value. Repurchase Agreement -Owned Collateral Collateral under a repurchase agreement is owned by the County. It will be held by an independent third party safekeeping agent approved by the County under an executed Bond Market Master Repurchase Agreement. Collateral with a market value totaling 102% of the principal and accrued interest is required and the counter-party is responsible for the monitoring and maintaining of collateral and margins at all times. ii. Safekeeping and Custody of County Owed Securities The laws of the State, this Policy, and prudent treasury management require that all securities be settled on a delivery versus payment basis and be held in safekeeping by an independent third party financial institution approved by the County. The County shall contract with its banking services depository or another financial institution(s) for the safekeeping of any securities owned by the County. The designated Custodian will be responsible for the clearing and safekeeping of all security trades and will provide a monthly report of holdings. All securities held by the Custodian on behalf of the County shall be evidenced by a safekeeping receipt. The purchase of individual securities shall be executed on a "delivery-versus-payment" (DVP) basis through the County's Safekeeping Agent. The DVP method prevents the County's funds from being released until the County has received, through the Safekeeping Agent, the securities purchased. 12. Diversification Diversification by security types shall be established by the following maximum percentages of investment type to the total County investment portfolio: Obligations of the US Government 90 Obligations of US Agencies/Instrumentalities 80 Certificates of Deposit 30 Limitation by banking institution 10 Commercial Paper 20 % Limitation by issuer S Money Market Mutual Funds 70 % Limitation by ownership in fund S Constant Do/!a~ Texas Investment Pools 90 Limitation by ownership of pool 5 Maximum percentages listed above are to be based on amortized book value. 13. Internal Control The County Treasurer shall maintain a system of internal controls over the investment activities of the County and his/her subordinate employees. The controls shall be designed to address fraud, employee error, misrepresentation by third parties, unanticipated market changes, and imprudent actions. Controls deemed most important would include: control of collusion, separation of duties, custody and safekeeping, delegation of authority, securities losses and remedial actions, and documentation on all transactions. The County's internal controls over investment activities, and quarterly investment reports, shall be reviewed annually by the County's independent auditor as part of the annual audit process. Any irregularities or suggestions for improvement shall be reported to the Commissioner's Court. Cash Flow Forecasting Cash flow forecasting is a control designed to protect and sustain cash flow requirements of the County. The Investment Officer will maintain a cash Flow forecasting process designed to monitor and forecast cash positions for investment purposes. 14. Reporting The County Treasurer will submit monthly investment reports to the Court, and not less than quarterly, the County Treasurer shall report to Commissioner's Court regarding the County's investment activities for the quarter in compliance with the Act. The reports shall contain sufficient information to permit an informed outside reader to evaluate the performance of the investment program. At a minimum the report shall include: - description of each investment and depository position. - book and market values at the beginning and end of the reporting period - additions, and changes to the market value during the period - book value and market value of each separately invested asset at the beginning and end of the reporting period market sector and fund - maturity date of each separately invested asset - account, fund, or pooled group fund for which each investment was acquired. - earnings for the period - overall yield for the portfolio(s) in comparison to its benchmark yield for the period Market prices for market value calculations shall be obtained from independent sources. The quarterly report shall be signed by the Investment Officer and Investment Adviser as applicable. 15. Depositories The County will designate one banking institution through a competitive process at least every five years as its central banking services provider according to local government code. In selecting a depository, the services, cost of services, credit worthiness, earnings potential, and collateralization of each financial institutions shall be considered. This institution will be used for normal banking services including disbursements, deposits, and safekeeping of securities. Depository agreements, executed in accordance with FIRREA (Financial Institutions Resource and Recovery Act), will be established before funds are transferred. Other banking institutions from which the County may purchase certificates of deposit will also be designated as depositories and must execute a written depository (collateral) contract in accordance with the provisions of this Policy. 16. Policies and Strategy Review The Commissioner's Court shall review and adopt the County Investment Policy and incorporated strategy not less than annually. The Commissioner's Court shall adopt a written instrument by court order stating that it has reviewed the Policy and strategy and the adoption of the court order shall record any changes made. 10 1 2 3 4 6 8 9 1C 11 12 13 14 1 16 i~ 18 19 20 21 22 23 2q ~c z 1 2 3 4 c 6 8 lU 11 7.2 13 14 15 16 i7 18 79 ?C 21 2L 2: 2~ 7_: PAGE 5 8 14 17 23 29 30 39 42 43 47 48 55 I N D E X September 10, 2007 --- Commissioners' Comments 1.1 Update on the L.I. F.E. Program 1.2 Consider/discuss, take appropriate action to accept resignation of Charles Donellan from Alamo Area Senior Advisory Committee and appoint Patrice B. Doerries to fill vacancy 1.3 Consider/discuss, take appropriate action on autopsy transportation and pauper cremation charges paid r_o funeral service providers 1.4 Consider/discuss, take appropriate action in 2007-2008 budget process to use some money in Fund 20 to pur~:hase used excavator 1.5 Consider/discuss, take appropriate action for Revision of Plat of Vistas Escondidas de Cypress Springs, & set public hearing for same 1.6 Consider/discuss take appropriate action for Pre- liminary Plat of Vistas Escondidas (to be renamed) 1.7 Consider/discuss, take appropriate action for Revision of Lots 99, 100 and 101 of The Horizon, and set date for public hearing for same 1.8 Consider/discuss, take appropriate action for revision of Lots 25 & 26 of The Horizon, and set date for public hearing for same 1.10 Consider/discuss, take appropriate action on Kerr County Investment Policy 1.11 Consider/dis^~.~ss, take appropriate action to hire Patterson and Company as investment advisers for Kerr County 1.9 Request to raise or build a new high water bridge on Town Creek Road and Old Harper Road, Silver Saddle Housing Subdivision 1.12 Consider/discuss, take appropriate action to establish the cost for obtaining a copy of the FY 2007-08 Kerr County Budget from County Clerk 3 1. 2 3 9 5 5 7 8 9 10 1 ~- 12 i3 14 15 16 1.7 18 1~ 2C ~,, 2: 2 2 I N D E X September 10, 2007 PAGE 13 1 Consider/discuss, take appropriate action to . further discuss new policy, fee schedule and booking agent for Kerr County Exhibition Center & rescind all. previous orders pertaining to such 56 14 1 Consider/discuss, take appropriate action to . appoint a new Constable for Precinct 1 67 15 1 Consider/discuss, take appropriate action on . proposed changes for FY 2007-08 budget 71 21 1 Consider/discuss, take appropriate action on . governance issues related to the Kerrville/ Kerr County Joint Airport Board 115 1.16 Consider/discuss, take appropriate action to time, and place of public hearing on set date , Kerr County FY 2007-08 budget 125 17 1 Consider/discuss, approve by record vote the . proposed Kerr County 2007 Tax Rate and set date, and place of first and second public time , hearings on such tax rate 129 18 1 Consider/discuss, take appropriate action to . authorize publication of notice(s) of proposed salary, expenses, and other allowances of Kerr County elected county or precinct officers for FY 2007-08 and set date, time, and place of 143 public hearing on same 19 1 Consider/discuss, take appropriate action to amend . the Kerr County EDAP Application, requesting only Planning Activities Funding 147 20 1 Consider/discuss, take appropriate action to . amend the contract for services with Tetra Tech 147 to provide p]_anning services q,0 Approval Agenda (Bills, budget amendments, reports) 156 1 5.0 Reports (Commissioners, Elected Officials, 161 ~ Department Heads) 180 5 --- Adjourned 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (No response.) JUDGE TINLEY: That motion does carry. Let's move to Item 10, if we might. Consider, discuss, and take appropriate action on Kerr County investment policy. MS. HARGIS: I think all of you have a copy. I actually handed out another copy this morning. COMMISSIONER LETZ: Is this different than the other one? MS. HARGIS: No. I just wanted to make sure you had one this morning. COMMISSIONER WILLIAMS: I got to find it. COMMISSIONER BALDWIN: Very well done, good and faithful servant. MS. HARGIS: Again, mostly -- mostly mirrors the Public Fund Investment law. If you would like to include some additional investments that are not here, you know, I'll be glad to -- there are other investments, but they're -- I don't consider them -- you know, we can do foreign bonds now. I don't think we want to consider something like that. COMMISSIONER LETZ: We need to stay with the law explicitly. MS. HARGIS: I think simple is better. COMMISSIONER WILLIAMS: And the Treasurer, who is the constitutional investment officer, is in complete support of this new policy? 9-10-07 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 44 MS. HARGIS: Yes. MS. WILLIAMS: Yes, sir. Yes, I am. JUDGE TINLEY: Merely because we authorize additional investments does not mean we would be required or otherwise compelled to invest in those particular investment products, does it? MS. HARGIS: That's correct. It just gives you the capability, so you don't have to change your policy as often. JUDGE TINLEY: I gather from what you're telling us is that worst case or best case scenario, or as the case may be, you can't see us going with any investment products which are outside of those within the authorized investments as set forth in this policy? MS. HARGIS: Not at this time, unless there's legislation -- there is additional legislation that comes up with a -- an investment that I think is fairly safe. JUDGE TINLEY: Well, of course, at that point in time, we'd be required to look at the policy as we are, what, once a year, plus anytime the legislature meets, anyway. MS. HARGIS: Right. JUDGE TINLEY: Okay. COMMISSIONER WILLIAMS: But even though we're required only to review it once a year, we can change it, or the Judge? MS. HARGIS: The Judge. 9-10-07 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 45 COMMISSIONER LETZ: Second. JUDGE TINLEY: Motion made and seconded to approve the proposed investment policy. Any further question or discussion? COMMISSIONER BALDWIN: I have a question. Depositories. At what point do we -- do we name the county depository? MS. HARGIS: You sent out an RFP, I think -- I want to say two and a half years ago, and it's a four-year agreement. I think that's pretty much Court policy. I would suggest that we -- I would like to do it now, but we can't because we do have a contract with them, but I think you need to do one at least every three years because of -- of the new banking products that are out there. You need to be sure they're competitive, that they offer us the products that we can be more productive with. I'm not necessarily sure that we have that now. I've learned over time that sometimes the -- even though we don't necessarily always like the bigger banking institutions, they offer us services that increase our productivity, perhaps even take the place of an employee, so sometimes it's good to look at that, at least every three years. But this is a four-year contract, so we really can't 9-10-07 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 46 do anything until next year. Probably the end of next year, we'll start looking at RFP's. That's a pretty long process. It's -- I would say it's about a six-month process, because you need to send out the RFP's; it takes them a while to get them back to you because they are so detailed. Rex and I will have a fun time going over them. JUDGE TINLEY: That's a four-year contract that we're on now. Did not the Legislature recently authorize those contracts to be two-year contracts? MS. HARGIS: That is correct. And -- but I don't know that we can get out of this one now, because it was a four-year contract. But now they can't make you do more than a two-year contract, so that's good. COMMISSIONER LETZ: When we get to that point, this is just a -- make sure we work closely also with the Human Resources Department because of payroll deductions and things of that nature that are kind of all related with this. And I recall some problems in that area, or some costs and things with our current depository that we didn't really address last time, 'cause we really didn't do many direct deposits. MS. HARGIS: That's one of the services you want them to provide to you free, because you're giving them your business. COMMISSIONER LETZ: Right. MS. HARGIS: Keep in mind, you have a really large 9-10-07 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 47 book of business, so you want to try to negotiate those kind of things. COMMISSIONER LETZ: Right. That's just something I'm bringing up, that we need to keep that on the burner as i well. COMMISSIONER WILLIAMS: Don't our depository agreements run on a calendar year, not a budget year? MS. HARGIS: You know, to be honest with you, I haven't seen an agreement. I think you signed it -- I don't know. I really don't know. COMMISSIONER WILLIAMS: Okay. JUDGE TINLEY: Any further question or discussion on the motion? All in favor of the motion, signify by raising your right hand. (The motion carried by unanimous vote.) JUDGE TINLEY: All opposed, same sign. (No response.) JUDGE TINLEY: That motion does carry. Let's move to Item 11; consider, discuss, take appropriate action to hire Patterson and Company as investment advisers for Kerr County. MS. HARGIS: We all just got a copy of this. I just gave a copy of this contract to Rex, so if you're not comfortable approving this yet, I would understand that. COMMISSIONER LETZ: I think we ought to defer. We can certainly give the County Attorney time to review it. 9-10-07 1 2 3 4 5 6 7 8 9 10 11 12 13 19 15 16 1i 18 19 2U 21 22 23 24 7.5 181 STATE OF TEXAS I COUNTY OF KERR The above and foregoing is a true and complete transcription of my stenotype notes taken in my capacity as County Clerk of the Commissioners Court of Kerr County, Texas, at the time and place heretofore set forth. DATED at Kerrville, Texas, this 14th day of September, 2007. JANNETT PIEPER, Kerr County Clerk BY : _ _ _ [~~___________ Kathy anik, Deputy County Clerk Certified Shorthand Reporter 9-.0-C7