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Home My WebLink About2009.07.21_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: July 21, 2009 TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch A Notice of the meeting and agenda filed in the office of the City Clerk and posted at City Hall at 5:00 p.m. on Friday, July 17, 2009. c�e� �r �k 11 iann M. Stevens, Deputy City Clerk AGENDA Call to Order Chairman Stephen Cataudella 2. Roll Call 3. Consideration and appropriate action relating to a request for approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of the July 7, 2009 Regular Meeting. Attachment # 3 -A B. Approval of Claims. Attachment # 3 -B C. Acknowledgement of receiving the monthly FY 2008 -2009 budget status report. Attachment # 3 -C O: \MANAGERIAL \Agendas \OP WA \2009 \0721.doc Owasso Public Works Authority July 21, 2009 Page 2 4. Consideration and appropriate action relating to items removed from the Consent Agenda. 5. Consideration and appropriate action relating to a request for Trustee approval of Resolution No. 2009 -05, adopting an investment policy for the City of Owasso. Ms. Hess Attachment # 5 Staff will recommend Trustee approval of Resolution No. 2009 -05. 6. Report from OPWA Manager. T Report from OPWA Attorney. 8. New Business. (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) 9. Adjournment. O: \MANAGERIAL \Agendas \OP W A\2009 \0721. doc OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, July 7, 2009 The Owasso Public Works Authority met in regular session on Tuesday, July 7, 2009 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5:00 p.m. on Thursday, July 2, 2009. ITEM 1. CALL TO ORDER Chairman Cataudella called the meeting to order at 6:58 p.m. ITEM 2. ROLL CALL PRESENT ABSENT Steve Cataudella, Chairman Doug Bonebrake, Vice Chair Wayne Guevara, Trustee Jon Sinex, Trustee Bryan Stovall, Trustee A quorum was declared present. STAFF Rodney Ray, Authority Manager ITEM 3. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA A. Approval of the Minutes of the June 16, 2009 Regular Meeting. B. Approval of Claims. Mr. Guevara moved, seconded by Mr. Sinex, to approve the OPWA Consent Agenda with claims totaling $645,917.23. The payroll payment report for pay period ending 6/20/09 was included for review. YEA: Bonebrake, Cataudella, Guevara, Sinex, Stovall NAY: None Motion carried 5 -0. Owasso Public Works Authority July 7, 2009 ITEM 4. CONSIDERATION AND APPROPRIATE ACTION RELATING TO ITEMS REMOVED FROM THE CONSENT AGENDA No action was required on this item. ITEM 5. REPORT FROM OPWA MANAGER No report ITEM 6. REPORT FROM OPWA ATTORNEY No report ITEM 7. NEW BUSINESS None ITEM 8. ADJOURNMENT Mr. Guevara moved, seconded by Mr. Sinex, to adjourn. YEA: Bonebrake, Cataudella, Guevara, Sinex, Stovall NAY: None Motion carried 5 -0 and the meeting was adjourned at 6:59 p.m. Pat Fry, Minute Clerk Stephen Cataudella, Chairman Claims List 07/21/09 Budget Unit Title Vendor Name Payable Description Payment Amouni OPWA ADMINISTRATION UNIFIRST HOLDINGS LP UNIFORM SERVICE 35.95 JPMORGAN CHASE BANK TRAVEL EXPENSE 247.58 JPMORGAN CHASE BANK TRAVEL EXPENSE 16.00 JPMORGAN CHASE BANK TRAVEL EXPENSE 1.00 JPMORGAN CHASE BANK TRAVEL EXPENSE 36.00 JPMORGAN CHASE BANK TRAVEL EXPENSE 22.67 JPMORGAN CHASE BANK TRAVEL EXPENSE 16.00 OFFICE DEPOT INC OFFICE SUPPLIES 7.31 DOERNER, SAUNDERS, DANIEL & ANDERSO RWD #3 VS CITY OF OWASSO 4,112.94 OFFICE DEPOT INC OFFICE SUPPLIES 239.59 JPMORGAN CHASE BANK MEETING EXPENSE 84.00 TREASURER PETTY CASH PER DIEM /PARKING/TOLLS 56.58 AEP /PSO ELECTRIC USE 738.51 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 34.09 AT &T CONSOLIDATED PHONE BILL 322.94 JPMORGAN CHASE BANK TRAVEL EXPENSE 12.83 JPMORGAN CHASE BANK LODGING EXPENSE 298.35 JPMORGAN CHASE BANK DRY CLEANING - UNIFORMS 5.60 JPMORGAN CHASE BANK DRY CLEANING - UNIFORMS 7.00 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 141.24 JPMORGAN CHASE BANK DRY CLEANING - UNIFORMS 8.40 UNIFIRST HOLDINGS LP UNIFORM SERVICE 32.25 TOTAL OPWA ADMINISTRATION 6,476.83 UTILITY BILLING SAV -ON PRINTING & SIGNS LLC WHITE ENVELOPES 186.00 TYRONE EUGENE DINKINS METER READER 581.10 TODD C. KIMBALL METER READER 161.55 KATHLEEN A BALSIGER METER READER 254.70 DAVID R. OLINGHOUSE METER READER 441.00 BERNIE SHAINE BURNS METER READER 244.35 JPMORGAN CHASE BANK POSPAPER- RECEIPT PAPER 94.33 AMERICAN MUNICIPAL SERVICES LTD COLLECTION SERVICES 261.40 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 2,066.82 OFFICE DEPOT INC OFFICE SUPPLIES 17.09 JPMORGAN CHASE BANK SHI INT'L- OFFICE 2007 316.00 DAVID R. OLINGHOUSE METER READER 272.25 KATHLEEN A BALSIGER METER READER 153.90 TYRONE EUGENE DINKINS METER READER 296.60 MARK MEYER METER READER 382.95 NOLAN RAY LANE METER READER 75.15 MARK MEYER METER READER 320.40 TOTAL UTILITY BILLING 6,125.59 WATER CITY GARAGE CITY GARAGE OVERHEAD 833.33 JPMORGAN CHASE BANK BUMP TO BUMP -PARTS 8.25 Page 1 Claims List 07/21/09 Budget Unit Title Vendor Name Payable Description Payment Amouni WATER... CITY GARAGE CITY GARAGE PARTS 76.55 JPMORGAN CHASE BANK FASTENAL -BOLTS 41.16 JPMORGAN CHASE BANK FASTENAL -BOLTS 20.50 JPMORGAN CHASE BANK FASTENAL -BOLTS 10.25 JPMORGAN CHASE BANK FASTENAL - WASHERS 4.83 UNIFIRST HOLDINGS LP UNIFORM SERVICE 6633 JPMORGAN CHASE BANK WATER PROD -METER CANS 191.50 JPMORGAN CHASE BANK WATER PROD -METER CANS 788.00 JPMORGAN CHASE BANK DELL - MONITOR 207.18 FLEETCOR TECHNOLOGIES FUELMAN - JUNE 09 1,144.00 JPMORGAN CHASE BANK WATER PROD -FIRE HYDRANT 1,370.40 JPMORGAN CHASE BANK WATER PROD - SUPPLIES /PARTS 2,930.06 JPMORGAN CHASE BANK WATER PROD - SADDLES /CANS 1,515.50 JPMORGAN CHASE BANK WATER PROD -METER SET 1,082.55 AEP /PSO ELECTRIC USE 386.73 JPMORGAN CHASE BANK BROWN FARMS -SOD 80.00 JPMORGAN CHASE BANK BROWN FARMS -SOD 80.00 TREASURER PETTY CASH LICENSE /MAGGARD 66.50 SCHUERMANN ENTERPRISES, INC RADIOS /SURGE SUPPRESSORS 1,785.41 JPMORGAN CHASE BANK CITY OF TULSA -WATER 99,000.00 JPMORGAN CHASE BANK CITY OF TULSA -WATER 84,383.57 JPMORGAN CHASE BANK DEO- CERTIFICATION RENEWAL 644.00 JPMORGAN CHASE BANK WATER PROD - REPAIR PARTS 47.14 JPMORGAN CHASE BANK LOWES- LADDER 195.18 JPMORGAN CHASE BANK BUMP TO BUMP -PARTS 8.25 UNIFIRST HOLDINGS LP UNIFORM SERVICE 64.85 GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES AND GLOVE 45.04 OWASSO TOP SOIL YARD DIRT 40.00 TOTAL WATER 197,117.06 WASTEWATER TREATMENT GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES AND GLOVE 45.04 JPMORGAN CHASE BANK WASTE MGMT- SLUDGE REMOVAL 2,763.16 UNIFIRST HOLDINGS LP UNIFORM SERVICE 62.94 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 60.38 JPMORGAN CHASE BANK WATER PROD - COPPER SULFATE 412.50 AT &T CONSOLIDATED PHONE BILL 119.02 INSTRUMENT & SUPPLY, INC REPAIR PARTS 390.55 AEP /PSO ELECTRIC USE 12,855.56 JPMORGAN CHASE BANK WALMART -BLANK DISCS 4.94 UNIFIRST HOLDINGS LP UNIFORM SERVICE 75.16 OFFICE DEPOT INC OFFICE SUPPLIES 19.04 FLEETCOR TECHNOLOGIES FUELMAN - JUNE 09 603.27 JPMORGAN CHASE BANK WALMART- PEROXIDE 0.98 CITY GARAGE CITY GARAGE PARTS 342.76 JPMORGAN CHASE BANK HOME DEPOT -TOOLS 279.44 Page 2 Claims List 07/21/09 Budget Unit Title Vendor Name Payable Description jPayment Amount WASTEWATER TREATMENT.. CITY GARAGE ICITY GARAGE OVERHEAD 250.00 TOTAL WASTEWATER TREATMENT 18,284.74 WASTEWATER COLLECTION: CITY GARAGE CITY GARAGE OVERHEAD 625.00 CITY GARAGE CITY GARAGE PARTS 6.31 JPMORGAN CHASE BANK WAYEST- SUPPLIES 75.80 UNIFIRST HOLDINGS LP UNIFORM SERVICE 39.49 UNIFIRST HOLDINGS LP UNIFORM SERVICE 39.49 FLEETCOR TECHNOLOGIES FUELMAN - JUNE 09 1,012.72 JPMORGAN CHASE BANK DELL - KEYBOARD 11.99 JPMORGAN CHASE BANK WATER PROD -PARTS 238.47 VERDIGRIS VALLEY ELECTRIC COOP GARRETT CREEK ELECTRIC 193.90 VERDIGRIS VALLEY ELECTRIC COOP GARRETT CREEK ELECTRIC 261.57 JPMORGAN CHASE BANK ATWOODS -PAPER PRODUCTS 20.78 VERDIGRIS VALLEY ELECTRIC COOP WATER CONTROL ELECTRIC 15.30 JPMORGAN CHASE BANK LOWES- CONCRETE 13.20 AEP /PSO ELECTRIC USE 2,966.45 VERDIGRIS VALLEY ELECTRIC COOP COFFEE CREEK ELECTRIC 306.49 JPMORGAN CHASE BANK ARMOR PERSONAL - GLOVES 14.50 VERDIGRIS VALLEY ELECTRIC COOP DOUBLE OAKS ELECTRIC 8.44 JPMORGAN CHASE BANK AMERIFLEX -HOSE FITTINGS 121.30 MIKE OZBUN ENTERPRISE INC REPAIR PARTS 1,472.00 GARY PANGBORN MARKETING CO DOUBLE MECHANICAL SEAL 686.00 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 184.10 AT &T CONSOLIDATED PHONE BILL 57.47 ALL AEROBIC SERVICES, LLC PUMP 3 LOADS FROM TANK 600.00 JPMORGAN CHASE BANK GRAINGER- REBUILD KITS 204.32 JPMORGAN CHASE BANK GELLCO -BOOTS 128.69 GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES AND GLOVE 45.04 TOTAL WASTEWATER COLLECTIONS 9,348.82 OPWA E 76TH ST N SANITAR` GREELEY & HANSEN, LLC LBX 619776 ENG SVCS - E 76 ST N SANI 15,527.45 TOTAL OPWA E 76TH ST N SANITARY 15,527.45 REFUSE COLLECTIONS MCNEILUS FINANCIAL INC DBA MCNEILUS AUTOMATED ARM REF VEHICLE 24,518.39 ALSUMA TRUCK & EQUIP REPAIR REPAIR. PARTS 486.69 JPMORGAN CHASE BANK WASTE MGMT -REF TIP FEES 7,355.10 ALSUMA TRUCK & EQUIP REPAIR REPAIR HYDRAULIC LEAK 350.20 BUMPER TO BUMPER AUTO PARTS AUTO PARTS 16.49 DAVID L. HARGER FINAL PMT FOR POLE BARN 7,475.00 AT &T CONSOLIDATED PHONE BILL 19.21 GEORGE & GEORGE SAFETY & GLOVE SAFETY SUPPLIES AND GLOVE 45.05 THE METROPOLITAN ENVIRONMENTAL TRUS MET MEMBERSHIP DUES 3,375.87 NATIONAL POWER WASH, INC POWER WASH REFUSE VEHICLE 150.00 Page 3 Claims List 07/21/09 Budget Unit Title Vendor Name Payable Description Payment Amouni REFUSE COLLECTIONS... QUIKSERVICE STEEL CO STEEL 80.72 UNIFIRST HOLDINGS LP UNIFORM SERVICE 59.21 MOTOROLA, INC RADIO FOR REFUSE TRUCK 3,296.24 JPMORGAN CHASE BANK AMERIFLEX- HYDRAULIC HOSE 76.80 FLEETCOR TECHNOLOGIES FUELMAN - JUNE 09 5,191.56 NATIONAL WASTE & DISPOSAL, INC. HALE ACRES CLEANUP 2,070.00 JPMORGAN CHASE BANK SOUTHWEST INTL -VALVE 41.68 JPMORGAN CHASE BANK TRAVEL EXPENSE 6.99 JPMORGAN CHASE BANK DELL - KEYBOARD 11.99 UNIFIRST HOLDINGS LP UNIFORM SERVICE 50.21 JPMORGAN CHASE BANK BUMP TO BUMP -FLOOR DRY 42.33 JPMORGAN CHASE BANK BUMP TO BUMP -TOOLS 4.25 JPMORGAN CHASE BANK BUMP TO BUMP -TOOLS 6.41 CITY GARAGE CITY GARAGE PARTS 1,815.50 JPMORGAN CHASE BANK ATWOODS- HOOKS /HITCH 81.37 CITY GARAGE CITY GARAGE OVERHEAD 3,333.33 TOTAL REFUSE COLLECTIONS 59,960.59 RECYCLE CENTER CITY GARAGE CITY GARAGE OVERHEAD 41.66 UNIFIRST HOLDINGS LP UNIFORM SERVICE 14.58 JPMORGAN CHASE BANK SHI INT'L- OFFICE 2007 316.00 AEP /PSO ELECTRIC USE 60.08 NATIONAL WASTE & DISPOSAL, INC. GLASS ROLLOFFS -JUNE 09 200.00 JPMORGAN CHASE BANK WASTE MGMT -REC ROLLOFFS 3,442.10 JPMORGAN CHASE BANK WASTE MGMT -REC ROLLOFFS 4,283.69 JPMORGAN CHASE BANK WASTE MGMT -REC TIP FEES 1,802.55 TERMINIX RENEWAL TERMITE SERVICES 199.00 UNIFIRST HOLDINGS LP UNIFORM SERVICE 14.58 AT &T CONSOLIDATED PHONE BILL 19.22 TOTAL RECYCLE CENTER 10,393.46 OPWA DEBT SERVICE THE BANK OF NEW YORK TRUST CO NOTE 06 - ATOR 1,000.00 THE BANK OF NEW YORK TRUST CO SERIES 2004 NOTE 100.00 TOTAL OPWA DEBT SERVICE 1,100.00 FUND GRAND TOTAL 324,334.5 OPWA GRAND TOTAL $324,334.54 Page 4 Department OPWA Administration Utility Billing Water Wastewater Wastewater Collection Refuse Recycle Center OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING 07/04/09 Payroll Expenses Total Expenses 13,190.75 4,619.21 10,097.14 12,154.04 6,082.52 11,087.23 1,046.40 18,648.98 7,339.46 16,349.46 19,253.53 10,019.30 16,404.79 1,800.37 FUND TOTAL 58,277.29 89,815.89 OWASSO PUBLIC WORKS AUTHORITY - OPERATING FUND FISCAL YEAR 2008 -2009 Statement of Revenues & Expenses As of June 30, 2009 — MONTH YEAR PERCENT TO -DATE TO -DATE BUDGET OF BUDGET OPERATING REVENUES Water 319,715 3,841,583 3,950,000 97.26% Wastewater 259,195 2,958,318 2,808,600 105.33% Refuse & recycle 148,520 1,547,236 1,495,200 103.48% Other fees 34,166 453,052 367,100 123.41% Interest & other 2,340 919,258 1,225,065 75.04% TOTAL OPERATING REVENUES 763,936 9,719,448 9,845,965 98.72% OPERATING EXPENSES: Personal services 178,526 2,131,684 2,203,063 96.76% Materials & supplies 241,652 2,588,397 2,588,215 100.01% Other services 191,588 1,265,386 1,289,296 98.15% Capital outlay 168,365 1,286,198 2,048,630 62.78% Debt service 114,552 1,811,800 2,206,571 82.11% TOTAL OPERATING EXPENSES 894,684 9,083,464 10,335,775 87.88% REVENUES OVER EXPENSES (130,747) 635,984 (489,810) TRANSFERS IN (OUT) Transfers out - (11,678) - NET INCOME (LOSS) (130,747) 624,306 (489,810) WORKING CAPITAL - Beginning Balance 1,915,867 954,839 WORKING CAPITAL - Ending Balance 2,540,173 465,029 **Note: Report is not final for fiscal year end. Accounts Payable are still in process. MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO THE HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY THE HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC GOLF AUTHORITY FROM: ANGELA HESS FINANCE DIRECTOR SUBJECT: RESOLUTION ADOPTING AN INVESTMENT POLICY DATE: July 17, 2009 BACKGROUND: Currently there is not a formally adopted written investment policy for the City of Owasso or the Trust Authorities. While Oklahoma law (OS Title 62, Chapter 2, Section 348.1) provides a basic framework for investment direction, a written investment policy is a recommended practice of the Government and Finance Officers Association (GFOA). The investment policy dictates, among other things, what investments may be entered into and for what purposes. Oklahoma statutes are restrictive and very specific regarding the types of authorized investments and the collateralization methods required for municipalities. This policy will not change the investment practices currently in use by the City. The policy creates a formal record of the procedures and documents the City Council and Authority approval. The primary purpose for the City's investment policy is to ensure that City funds are invested in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow needs of the city and complying with all state statutes governing the investment of public funds. ADDITIONAL INFORMATION: Attached is a written investment policy for the City of Owasso and its Trust Authorities. The proposed investment policy is based on model investment policies developed by the GFOA and Crawford & Associates with modifications taken from the investment policies of other municipalities. REQUESTED ACTION: Staff recommends Trustee approval of a resolution adopting the investment policy. ATTACHMENTS: Investment Policy Resolution 2009 -05 sd The City Without Limitst5. Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 Purpose The purpose of the City of Owasso's Investment Policy is to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow needs of the city and comply with all state statutes governing the investment of public funds. The Investment Policy shall comply with the Owasso Code of Ordinances, 7 -101. The Investment Policy shall comply with Oklahoma State Statute 62 -348.1 as it pertains to authorized investments and disposition of income. Policy Statement Effective cash management is recognized as essential to good fiscal management. An aggressive cash management and investment policy will take advantage of investment interest as a viable and material revenue source for all operating and capital funds. The City's portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. It is the policy of the City that, giving due regard to the safety and risk of investment, all available funds shall be invested in conformance with legal and administrative guide lines and, to the maximum extent possible, at the highest rates obtainable at the time of investment. Scope This Investment Policy applies to all financial assets of the City of Owasso, and its Trust Authorities. These assets are accounted for in the various funds of the City of Owasso and include the general fund, special revenue funds, capital project funds, enterprise funds, internal service funds, trust and agency funds and any new fund established by the Owasso City Council. Prudence Investments shall be made with judgment and care, emphasizing the preservation of capital as well as the income to be derived. Objectives The primary objectives of investment activities, in order of priority, shall be safety, diversification, liquidity and return on investment. The city without Limits. Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 Safety -- Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to reduce credit risk and interest rate risk. Diversification - -The investments will be diversified by security type and institution in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. Liquidity- -The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. Return on Investment- -The investment portfolio shall be designed with the objective of obtaining a rate of return throughout the budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio. Delegation of Authority to Make Investments The City Treasurer or designee shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this Investment Policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral /depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the established procedures. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Ethics and Conflict of Interest Any officers or employees of the City of Owasso involved in the investment process shall refrain from personal business activity that could conflict or give the appearance of conflict with the proper execution of the investment program or impair their ability to make impartial decisions and shall at least annually advise the City Manager or City Manager designee of any personal financial interest in any financial institution that conducts business with the City of Owasso. The officers or employees shall refrain from undertaking personal investment transactions with the same individual or broker /dealer with which business is conducted on behalf of the City of Owasso. The city without Limits. Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 Authorized Financial Institutions /Financial Dealers Public deposits of funds shall be made in qualified public depositories authorized to do business in the State of Oklahoma. The City Council shall approve and designate additional authorized depository institutions by resolution. Funds may be invested in certificates of deposit (CDs) in institutions which have been approved by the City Council as a depository banking institution and which meet the following requirements: 1. Sufficient collateral to equal the amount of 100 percent of the City's investments shall be pledged prior to the deposit of the funds and for the terms of the investment, in accordance with this policy; 2. Established record of fiscal health and service, as determined by a rating of "C minus" or above by independent rating agencies (such as Lace Financial Corporation or Sheshunoff Bank Rating Service) or equivalent past dealings with the City Treasurer's office; 3. Collateral agreements must be approved prior to deposit of the funds as provided for in the "Security for Local Public Deposits Act ". Authorized and Suitable Investments The City Treasurer is empowered by the City Council to invest in any of the securities authorized in the Oklahoma State Statutes, Title 62, Section 348.1- 348.3. Investments where collateral or funds to be invested has been deposited with a trustee or custodian bank in irrevocable trust may also invest in any or all of the following: a. Obligations of the United States government, its agencies and instrumentalities; Defined as: A debt security issued by a federal agency. Most federal agencies are not backed by the full faith and credit of the U.S. government. GNMA (Government National Mortgage Association) is an example of an agency security backed by the U.S. Government, but FNMA (Fannie Mae), FHLB (Federal Home Loan Bank), FHLM (Federal Home Loan Mortgage) and others are not backed. The City will use only agency securities that are backed by U.S. Government or have an AAA rating. b. Collateralized or insured certificates of deposit and other evidences of deposit at banks, savings banks, savings and loan associations and credit unions located in this state, or fully insured certificates of deposit at banks, savings banks, savings and loan associations and credit unions located out of state; The City Without Limits`. Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 Defined as: CDs are similar to savings accounts in that they are insured and thus virtually risk free; they are "money in the bank" (CDs are insured by the FDIC for banks or by the NCUA for credit unions). They are different from savings accounts in that the CD has a specific, fixed term (often three months, six months, or one to five years), and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest. In exchange for keeping the money on deposit for the agreed -on term, institutions usually grant higher interest rates than they do on accounts from which money may be withdrawn on demand. c. Savings accounts or savings certificates of savings and loan associations, banks, and credit unions, to the extent that the accounts or certificates are fully insured by the FDIC; d. County, municipal, or school district direct debt obligation for which an ad valorem tax may be levied or bond and revenue anticipation notes, money judgments against such county municipality or school district ordered by a court of record or bond and revenue anticipation notes issued by a public trust for which the City of Owasso is beneficiary thereof; Negotiable certificates of deposit issued by a nationally or state - chartered bank, a savings bank, a savings and loan association or a state - licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed ten percent (10 %) of the surplus funds of the city or county which may be invested pursuant to this section. Not more than one - half (1/2) of the ten percent (10 %) limit shall be invested in any one financial institution specified in this paragraph; Defined as: A certificate of deposit with a minimum face value of $100,000. These are guaranteed by the bank and can usually be sold in a highly liquid secondary market, but they cannot be cashed -in before maturity. Prime bankers' acceptances which are eligible for purchase by the Federal Reserve System and which do not exceed 270 days' maturity. Purchases of prime bankers' acceptances shall not exceed ten percent (10 %) of the surplus funds of the City or county which may be invested pursuant to this section. Not more than one -half (1/2) of the ten percent (10 %) shall be invested in any one commercial bank pursuant to this paragraph; Defined as: A short -term credit instrument created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market on the basis of the credit quality of the guaranteeing banks. These instruments have become a popular investment for money market funds. Also called acceptance. �C;> The city without LIMitSR'. Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 g. Prime commercial paper which shall not have a maturity that exceeds one hundred eighty (180) days nor represent more than ten percent (10 %) of the outstanding paper of an issuing corporation. Purchases of prime commercial paper shall not exceed seven and one - half percent (7% %) of the surplus funds of the city which may be invested pursuant to this section; Defined as: Highly -rated commercial paper that is considered investment grade. Commercial paper is an unsecured promissory note sold by a corporation. It has a fixed maturity of 1 to 270 days and is usually sold at a discount from face value. Repurchase agreements (Repo) that have underlying collateral consisting of those items specified in paragraphs a through a of this subsection; and Defined as: A form of short -term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. For the party selling the security (and agreeing to repurchase it in the future) it is a repo; for the party on the other end of the transaction, (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement. Repos are classified as a money- market instrument. They are usually used to raise short - term capital. Money market mutual funds regulated by the Securities and Exchange Commission and which investments consist of those items and those restrictions specified in paragraphs a through f of this subsection. Defined as: Mutual funds that invest solely in money market instruments (short term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repurchase agreements, agency securities, and federal funds). sd The City Without Limits. Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 Collateral ization The City Treasurer is authorized by statute to invest in certain securities when those securities are collateralized, as evidenced by pledge of joint custody. In all cases of collateralization, the collateral shall be held by a third party custodian with whom the City has a current custodial agreement or be held in the name of parties by the Federal Reserve Bank servicing Oklahoma. The custodian shall issue a custody receipt to the City Treasurer identifying the security and stating that it is pledged to the City of Owasso. The amount of collateral to be pledged for the security of the City's deposits and securities shall be consistent with the provisions of the Oklahoma "Security for Local Public Deposits Act" and additional standards established by the City Treasurer for the purpose of securing public funds and deposits of the City. Collateral Requirements To qualify as depositor, a bank, trust company, savings and loan association, or savings bank must collateralize City deposits, including interest earned and /or accrued (the amount of money on deposit with an institution at any given time) with any combination of securities, Federal Home Loan Bank letters of credit, or corporate surety bonds at the cost to the depository. Required collateralization levels shall be as follows: Surplus cash in demand deposit account 100% Certificate of deposits 100% Repurchase agreement 100% Acceptable instruments for collateralization of cash in demand deposit accounts and certificates of deposit are listed below: (a) Direct obligations of the United States Government, its agencies or instrumentalities to the payment of which the full faith and credit of the U.S. Government is pledged, or obligations to the payment of which the full faith and credit of this state is pledged. (b) Obligations of the Government National Mortgage Association, Federal National Mortgage Association, or Federal Home Loan Mortgage Corporation, or federal land bank or banks or federal home loan bank notes or bonds . (c) Obligations of the state or of a county, municipality, or school district of this state pledged or of an instrumentality thereof; (d) General obligation bonds of any other state in the U.S.; and (e) Surety bonds and letters of credit, under certain specified conditions. The City Without Limits. Acceptable collateral for repurchase agreements: Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 (a) United States Treasury Bills, Notes, Bonds or Treasury Certificates; (b) Governmental National Mortgage Association obligations; (c) Federal National Mortgage Association obligations; (d) Federal Home Loan Mortgage Corporation obligations; (e) Federal Farm Credit Bank obligations; (f) Federal Land Bank obligations; (g) Federal Home Loan Bank obligations; provided The City Treasurer shall verify as appropriate and at least quarterly, that the market value of collateral pledged is sufficient to cover the security and any additional deposits at the institution. The City Treasurer shall have discretion to refuse any instrument as appropriate collateral, notwithstanding the tenets of this Investment Policy. Acceptable collateral will be subject to a recognized and readily available market pricing. Safekeeping and Custody All investment securities purchased, including collateral for repurchase agreements, shall be held in safekeeping by a designated third party custodian. The institution shall issue a safekeeping receipt for each security, listing the specific instrument, par value, rate, CUSIP and any other pertinent information. In addition the safekeeping institutions shall send a statement on at least a quarterly basis listing all securities held in each safekeeping account with market values that shall be verified. Deliver vs. Payment All trades will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution simultaneously with the release of funds. Securities will be held by the third - party custodian, as evidenced by safekeeping receipts, held in the City's name. Diversification The City of Owasso will diversify its investments by institution. With the exception of U.S. Treasury securities and authorized pools, no more than fifty percent (50 %) of the City's total investment portfolio will be invested in a single financial institution. �� ?7 The City Without Limits`. Investment Policy Issuing Office: Finance Department Originally Issued: July 2009 Maximum Maturities The City of Owasso will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City of Owasso will not directly invest in securities maturing more than three years from the date of purchase. Reserve funds may be invested in securities exceeding three years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. Internal Control An independent audit of investments made and held will be performed as part of the annual audit of the City of Owasso at the close of each fiscal year. Performance Standards The investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City of Owasso and its Trust Authorities investment risk constraints and cash flow needs. Investment Policy Adoption The Investment Policy shall be adopted by resolution of the City Council and the Trust Authorities. The City Treasurer shall review the Investment Policy on an annual basis and any modifications made thereto must be approved by the City Council and Trust Authorities. OWASSO PUBLIC WORKS AUTHORITY OWASSO, OKLAHOMA RESOLUTION NO. 2009-05 RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY, [TY OF OWASSO, TULSA COUNTY, OKLAHOMA ADOPTING AN WESTMENT POLICY FOR THE OWASSO PUBLIC WORKS UTHORITY AND AUTHORIZING INVESTMENTS. WHEREAS, the Oklahoma Statutes, 62 OS 2000 Supp., Sect., 348.1 provides that the lawful treasurer of any city or town, when authorized by the appropriate governing body by resolution, shall invest any monies in the custody of the treasurer as limited by law, provided further that said monies cannot then be used for the purpose for which they are to be expended; and, WHEREAS, the Owasso Public Works Authority (OPWA) recognizes the necessity of establishing an investment policy to properly transact its investment activities; and, WHEREAS, the OPWA also recognizes the necessity of improving its procedures for investing available funds to earn additional revenue. NOW, THEREFORE, BE IT RESOLVED BY THE OWASSO PUBLIC WORKS AUTHORITY OF THE CITY OF OWASSO, OKLAHOMA, that, to -wit: A. The City of Owasso Investment Policy originally issued July 2009 is hereby adopted and applies to all funds of the City of Owasso. B. The City Treasurer shall be and is hereby given blanket authority and directed to invest and reinvest available funds on a continuing basis; provided that the income received from said investments may be placed in the general fund of the governmental subdivision to be used for general governmental operations, or the fund from which the investment was made. C. The City Treasurer shall keep records of all investments, showing the amount invested from each fund by type of investment and distribution of interest earned by each fund. DATED this 21" day of July, 2009. Stephen Cataudella, Chairman ATTEST: Sherry Bishop, Authority Secretary APPROVED AS TO FORM: Julie Lombardi, City Attorney