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RES 1513 09/22/2015 RESOLUTION NO. 1513 Resolution to Participate WHEREAS, the Public Funds Investment Act, Texas Government Code, Section 2256.001 et seq. (the "Act"), requires the governing body of each local government in this State to adopt investment policies in accordance with the terms of the Act; and WHEREAS, pursuant to the requirements of the Act, the City Council (the "Governing Body") of the CITY OF CIBOLO (the "Local Government") has previously reviewed and adopted an investment policy (the "Policy") that provides in part that the funds of the local government will be Invested in investments permitted by the Act In order to: (1) Invest only in investments legally permitted under Texas law; (ii) minimize risk by managing portfolio investments so as to preserve principal and maintain a stable asset value; (ill) manage portfolio investments to ensure that cash will be available as required to finance operations; and (iv) maximize current income to the degree consistent with legality, safety and liquidity; and WHEREAS, pursuant to the Policy and the Act, the Local Government has appointed ANNA MIRANDA AND ROBERT T.HERRERA (the "Investment Officer") to act as the Investment officer of the Local Government; and WHEREAS, the Act provides that funds under the control of a Local Government may be invested through investment pools meeting the standards of Section 2256.016 of the Act; and WHEREAS, the Local Government has received and reviewed the Information Statement, dated October 1, 2013 (the "Information Statement"), of Texas Cooperative Liquid Assets Securities System, an investment pool administered by Public Trust Advisors, LLC, (the "Program"), which sets forth the Information required by Section 2256.016(b) of the Act; and WHEREAS, the Local Government has determined that the investments proposed to be acquired by the Program are of a type that are permitted by the Act and are consistent with the Policy; and WHEREAS, the Local Government has determined that an investment in the Program will assist the Local Government in achieving the goals set forth in the Policy, and will tend to preclude imprudent Investment activities arising out of investment transactions conducted between the Local Government and the Program; and WHEREAS, the Local Government understands that the Program operates through the Sixth Amended and Restated Trust Agreement dated as of August 16, 2013 (the "Trust Agreement'), which provides the terms on which the Program will operate and the rights of the participants in the Program and sets forth the responsibilities of Public Trust Advisors, LLC, as the administrator of the Program (the "Administrator"), and of Wells Fargo Bank as custodian (the"Custodian"); 999 18th Street, Suite 1230 T 800-707-6242 clientservices@texasclass.com Denver, CO 80202 F 855-848-9910 www.texasclass.com Page 3 Texas 0�� CLOSQ NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE LOCAL GOVERNMENT: That the form, terms and provisions of the Trust Agreement, a draft of which was presented and reviewed at this meeting, providing for the creation of the Program and for the rights of the Program participants and the duties and responsibilities of the Administrator, be and the same are hereby approved and adopted; and that the Investment Officer be and he or she is hereby authorized and directed to execute and deliver to the Administrator and the Custodian in the name and on behalf of the Local Government, a participation certificate evidencing the agreement of the Local Government to be bound by the Trust Agreement substantially in the form of the Trust Agreement reviewed and approved at this meeting, together with such changes therein as may be approved by the said officer, such approval to be conclusively evidenced by the execution thereof; and be it further Resolved, that the investment program established by the Trust Agreement is hereby found and determined to be consistent with the Policy, and to preclude imprudent investment activities arising out of Investment transactions conducted between the Local Government and the Program; and be it further Resolved, that the Governing Body hereby officially finds and determines that the facts and recitations contained in the preamble of this Resolution are true and correct; and be it further Resolved, that the Governing Body hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted for the time required by law preceding this meeting, and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter thereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551,Texas Government Code, as amended, and the Act; and be it further Resolved, that the officers of the Local Government, and each of them, shall be and each is expressly authorized, empowered and directed from time to time to do and perform all acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the Local Government all certificates, Instruments and other papers, whether or not herein mentioned, as they may determine to be necessary or desirable in order to carry out the terms and provisions of this Resolution and of the Trust Agreement hereby authorized and approved, such determination to be conclusively evidenced by the performance of such acts and things and the execution of any such certificate, financing statement, instrument or other paper; and be it further Resolved, that this Resolution shall take effect and be In full force and effect upon and after its passa . �z l Lisa M. Jackson Signature of Mayor Date Printed Name Peggy Cimics Signature of City Secretary Date Printed Name 999 18th Street, Suite 1230 T 800-707-6242 clientstrr Denver, CO 80202 F 855-848-9910 com Page 4 CL�$o Exhibit D - Participation Certificate The undersigned CITY OF CIBOLO (the "Local Government") does hereby request that it be admitted as a Participant pursuant to Section 2.3 of the Sixth Amended and Restated Trust Agreement (the"Agreement") dated as of August 16, 2013 by and between the Participants, Wells Fargo Bank, as Custodian, and Public Trust Advisors, LLC. By executing this Participation Certificate, the undersigned agrees that, upon the execution hereof by the Program Administrator, it will become subject to the same obligations and shall have the same rights as if it had executed the Agreement. The undersigned hereby certifies that ANNA MIRANDA AND ROBERT T. HERRERA (the "Investment Officer") Is the duly designated Representative of the undersigned as required by the Agreement. The undersigned hereby certifies that Its governing body has taken all actions required by Section 2256.016 of the Public Funds Investment Act, Texas Government Code, in order for it to participate in the Trust created by the Agreement. CITY OF CIBOLO Entity Name g� 9 as-oS CITY SECRETARY Signature Date Title Accepted by Administrator (to be completed by Texas CLASS): Signature Date Title 999 18th Street, Suite 1230 T 800-707-6242 clientservices@texasciass.com Denver, CO 80202 F 855-848-9910 www.texasclass.com Page 5 STANDARD&POURS POOL PROFILE RATINGS SERVICES March 39, 2015 IIceN/.YlN IWNCIU Texas Cooperative Liquid Assets Securities System Principal Stability Fund Ratings Definitions AAAm Afund rated About the Pool AAAm'aemonsaa0es Pool Rating pggm extremely strong capeolty,to maintain prindpalsmity pool Type Stable NAV Government Portfolio Composition as of March 31 2015 and to limit exposure to Investment Pool p prindpel losses due to credit ' risk GovAGcv Investment Adviser Public Trust Advisors, LLC V-A 'AA016 CDaAm'ts tits highest ras prlwipal atabinty fund rating CORP / assigned by Standard& REPO e.2% Poon s: 7.0% "\ AArn A fund rated'Mm' Portfolio Manager Randy Palomba, CFA&Neil Waud,CFA ^sae% demonstrates very strong CaWly b malntaln Mnolpal stability and to limn exposure topdnclpalImes due to Pool Rated Since March 2009 credit dsk.ltdHlersfrom theCustodian Wells Fargo Bank N.A. AacP highest-rated funds only to a 39.3% small degree. Distributor Public Trust Advisors,LLC CP-Commercial Paper;ABS-Asse4backeo commerical paper,REPO Repurchase Agreement;CORP-Corporate;GOV-AGCY-Agency and Am A haul rated'Am' Owemment;CD's-Certificates o1 Deposit t demonstrates strong calwity to matntaln principal stability Rationale (PFIA)guidelines and may include U.S.Treasuries, amIll limit exposure to Texas Cooperative Liquid Assets Securities System agencies,state and local government obligations, pdttdpellosses due toCredit!(Texas CLASS)is rated'AAAm'by Standard& collateralized certificates of deposit, repurchase risk,but Is somewhat mom Poor's.This rating demonstrates that the pool has agreements(REPOs),and highly-rated commercial j ecfthe adverse effects oChanges ln an extremely strong capacity to maintain principal paper.These securities,at the time of purchase, are dreumstanoesand emnomic !stability and to limit exposure to principal losses rated in the highest rating category by one or more Conditions than kinds In due to credit risk.This is accomplished through nationally recognized statistical ratings higherreledcategories conservative investment practices and strict internal organizations which regularly rate such obligations. controls.Standard&Poor's monitors the portfolio The portfolio's weighted average maturity to reset SeBm A(undrated on a weekly basis. (WAM(R))is kept under 60 days,which further i'BBBm'ecat-sathelps to enhance liquidity and limits market price adequatecapacttyto Overview exposure. Portfolio securities are priced to market maintain exposure pty limitand to Texas CLASS was created specifically for the use on a weekly basis. pdnditaifo sesdotocredit of Texas local government entities and seeks to dsk.However,adverse provide safety,liquidity,convenience,and ecnnomlc CDnftASter competitive rates of return.The program is designed I "gl`s dreumstances ae to meet the needs of Texas public sector investors. more likely to lead to a j re&adcapacityamainlaln It purchases securities that are legally permissible {pdndpal stability. under state statute and available for investment by j Texas counties,cities,school districts,municipal SBm A fund rated SBrW utility districts,college districts,and other public demonstratesspecdatve agencies. Texas CLASS is a full-service cash calwity,to ma andin Pdr pal management and investment program designed stalill �anglry to maintain specifically to make the function of managing nd lassesduemcredit p Y g g public Pd Pa funds safer and more simple while it provides risk.yhavesuchhmdswfR competitive returns. Texas CLASS has operated poladv caaderistics,tur quality since 1996. prolective dtaradedstk:s, these may be outweighed by large uncertalntlesormajor Management exposures to adverse i Public Trust Advisors,LLC serves as the pool's cortdlllons, administrator and investment adviser.The Dm Afund ratad'Dm'has marketing and operation functions of the portfolio failed to malrtialnprincipai are also performed by Public Trust Advisors, LLC. st"ItIf resulting in arealized The pool is subject to the general supervision of the or unrealized Im of Board of Trustees and its Advisory Board,both of ^bid which are elected by the Texas CLASS Participants.Wells Fargo Bank, N.A.serves as custodian for the pool. Portfolio Assets Portfolio Assets aim to comply with the Public Funds Investment Act,Texas Government Code j Plus(+)or Minus(-) Thet angsmaybemoomw iStandard&Poor's Analyst: Joel Friedman-(1)212-438-5043 wwwstandardandpoors.com mi the addition)s1finof h glia t`i or Partici nts should consider the Investment objectives,risks and char minus(-1 sign a snow Pa J gas and expenses of the pool before investing. The investment guidelines f rew"standing will*the which can be obtained from your broker-dealer,contain this and other information about the pool and should be read carefully before L investing. Principal Stability Rating Texas Cooperative Liquid Assets Securities System AAAm Approach and Criteria A Standard 8 Pco's Data Bank as of March 31,2015 Principe!stability fund rating, Net Asset Value per Share.............. $1.00006 Net Assets(millions)...........,....... $3,567.97 Inception Date....................... January 1996 also krcvm as$'money WAM(R). 51 days WAM(F)"...............: market king'.fund Ise ty 55 days 7 Day Yield............................. 0.14% forwarddooking opinion about Weighted Average Maturity(Resell "Weighted Average Maturity(Final) a fixed income funds c to maintain stable principal Net Assets,WAM(R)and WAM(F) (net asset value).When Portfolio Maturity Distribution as of March 31,2015 assigning a prim stability rating lo a had,Standard& 4500 ----- 120 ,'Pooes analysis focuses primarily on the 3750 / 100 loo o creditworthiness of the funds a InV8emleR 3000 80 so P' lllSBand courtarpx0es,and also its 2250 `� e -�f MvesimenWmaturity alruclure P _- ao g and managements ability and 1500 .. 40 g 40 �. policies to maintain the funds — stable net asset value. 750 20 20 , i Principal stabIlityfund slings o are assigned lo funds that ° $ seek to maintain a stable or an ° ,, M g t z z s z z a z z z 9 m a accumulating 110i 84aef V81Ue. R R R R R R R R R R R R9 9 m tui R Generally,when faced with 3 k 3 8 1 & 4 3 Days an unantkipaled level of redemption requests during - W A...1. --wont rRm• --Wnxt(F) periods of high market stress, the manager of any fund may suspend redemptions for upto; Portfolio Credit Quality as of March 31,2015' 'five business days or meet Portfolio 7 Day Net-Yield Comparison" redemption requests with payments In-kind in lieu of 1.0 cash A temporary suspension' of redemptim or meeting i redemption requests with o.ax I dls fttk ns in-kind does not j oxatiw6e a(alum to maintain 0.6% i stable nota"values. However,higher rated!funds 0.4% are expected to have stronger 1 A-1 capacities to pay Investor i47.4%— 0.2% redemptions.In cash during ------------------------------------- limes of high market stress A-1- 0.0% because comprise shorter maha52.61Aity and NgkerquallfyInvestments. $ A a e a d ri biz a Principal stability fund ratings,of money market full --SEP RaleA niP IMerbPe «..Fund I sBWga,are Identified by 818'm' `S&P Money Furl Indices are calculated weekly by iMoneyNet,Inc,and are comprised SUIfiX(e.g.,'AAAmj 'As assessed by Standard&Poors of funds rated or assessed by S&P to within the specific rating categories.The S&P Rated tti8etmgrtsh Ute principal GIP Indices are calculated weekly by S&P and are comprised of'AAAm'and'AAm' I stability rating from a Standard government investment pools. &Pools traditional issue or The yield quoted represents past performance.Past performance does not Issuer credit sung,s guarantee future results Current eld may be lower or her than the veld traditional issue o issuer 9 Yl Y �9 Y credit rating regecls standard i quoted &Pdoesview of a borrower's ability lo meet its financial obilgdtim&Principal staMity fund singe aro not Pool portfolios are monitored weekly for developments that could cause changes in the ratings.Rating decisions are based on periodic 'commentaries on yield levels, f meetings with senior pool executives and public information. Standard&Pooes Is neither associated nor affiliated with the fund. 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