HomeMy WebLinkAbout02-26-07 Regular Meeting of Fiscal Affairs Committee Minutes
MINUTES OF THE LA PORTE FISCAL AFFAIRS COMMITTEE
February 26, 2007
1. Call to Order
The meeting was called to order by Chairman Chuck Engelken at 5:00 p.m.
Members of Committee Present: Councilmembers Tommy Moser, and Chuck Engelken.
Members of Committee Absent: Howard Ebow.
Members of City Council, City Executive Staff/Controller and City Employees Present:
Interim Director of Finance Michael Dolby, Controller Phyllis Rinehart, City Secretary Martha
Gillett and Interim City Manager John Joerns, City ConsultanU Advisor Debra B. Feazelle.
Other citizens: There were no citizens present.
2. Consider approval of Minutes of Regular Meeting of La Porte Fiscal Affairs Committee
Minutes held on October 23,2006.
Motion was made by Committee Member Moser to approve the minutes as presented. A
second by Committee Member Engelken. The motion carried.
Ayes: Engelken and Moser.
Nays: None
Abstain: None
3. Interim Director of Finance Michael Dolby presented a report on the 2006 Comprehensive
Financial Report.
The City's Auditor reported the City received a "clean audit" rating and noted this is the
highest rating available.
4. Controller Phyllis Rinehart presented quarterly investment reports and provided an overview.
5. Interim Director of Finance Michael Dolby presented the first quarter credit card expenditure
report,
Interim City Manager noted the people listed on his Main 101 Grill charge did not appear to be
correct on the report to what he turned into finance. He requested this be checked out by
finance.
Tommy Moser requested staff report on how many P Cards are issued to City employees
and the policy.
Minutes of the La Porte Fiscal Affairs February 26,2007- Page 2
Chairman Engelken requested staff to determine if membership charges paid for Cynthia
Pearson were in her name individually or in the City's name and report findings back to
committee.
6. Administrative Reports.
There were not administrative items reported.
7. Committee Comments. .
The committee had no comments to report
8. Adjournment
There being no further business to come before the Committee, the meeting was adjourned
at 5:27 p.m.
Respectfully submitted,
.
~tt~/1RHL c.fV
City Secretary
Approved this day of 2007.
Chairperson Chuck Engelken
~~
3
City of La Porte
Proposed Calendar
RFP for Auditing Services
June 20, 2007
Mail out RFP to various auditing firms
July 23, 2007
Open RFP's from participating auditing
firms
July 24, 2007 to
August 20, 2007
Review ofRFP's received from auditing
firms
August 27, 2007
Approval of selected auditing firm by city
council
4
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5
CITY OF LA PORTE
Interoffice Memorandum
FROM:
Barry Beasley, Councilman
Howard Ebow, Councilman
Chuck Engelken, Councilman
Tommy Moser, Councilman
Louis Rigby, Councilman
John Joerns, Interim City Manager
Michael Dolby, Interim Finance Directoc9
Phyllis Rinehart, Controller
TO:
DATE:
SUBJECT:
Apri13,2007
Quarterly Investment Report
For the second quarter of the 2007 fiscal year, the City's investment portfolio yield has been between 5.13%
and 5.15%. The average return on the portfolio for the first quarter of the fiscal year was 5.14%, which is
above the average yield of our benchmark, which was 5.13% (see graph below). Our benchmark is the 6-
month T-Bill rate. The current year to date interest earned for the 2007 fiscal year is $1,233,577 which is
approximately $380,000 more than projected at this time.
City vs. Benchmark
6.00%
500% f =>
4.00%
3.00% -
2.00%
1.00% ,
l
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
"(-.f ~~ \-:><$ \~ "(-~ ~q,,~ 0(:/ ~&-' <yq"t;.; \'b-<::' 4.~ ~'b-<:
- Portfolio Yield - Benchmark
At March 31st the City's portfolio consisted of 33% in Agency Notes, 45% in Texpoo1, 17% in TexSTAR
and 5% in Logic (see pie chart below).
By Investment Type
45%
17%
I_ Texpool - TexSTAR 0 Logic 0 Agency Notes 1
The overnight rate set by the Fed continues to remain stable. The most current overnight rate was set on
June 29, 2006 at 5.25%. With that said, our main focus is to continue to ladder the portfolio.
At the end of the first quarter, the City's portfolio consisted of 67% of the portfolio maturing overnight (see
graph below). 14% of the City's portfolio matures in one year and 19% of the City's portfolio matures in 12-
24 months.
By Investment Maturity
19%
14%
I - Overnight
_ 1-12 Months
012-24 Months I
Currently, the 3-month T-Bill is at 5.15%; 2-year, at 4.63%; 5-year, at 4.50%; and, the 20-year is at 4.78%
(see yield curve below).
Yield Curve
6.00%
I
j
5.00% j
-
4.00% I
i
3.00% I
!
!
2.00% i
3mon 6mon 1 yr 2 yr 5 yr 10 yr 20 yr
Treasury Bills
- 3 months ago - current
The overnight rate is currently at 5.25%. We will continue to focus on laddering the portfolio to maintain a
constant cash flow and a liquid position.
2
2 YearT-Note
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~~ ~~ ~~ ~~ ~~ ~~ ~~ ~~ ~~ ~~
In summary, we will continue to invest the City's funds in conservative investments, as authorized by the
Public Funds Investment Act, always keeping in mind Safety first, and then Liquidity and lastly Yield.
3
Par Book Market Days to
Value Value Value Maturity
Investment Pools 28,316,921 28,316,921 28,316,921 1
Agencies 13,988,496 13,988,496 13,978,445 299
Total 42,305,417 42,305,417 42,295,366 100
Book
Value Percent
1-12 months 28.316,921 66.93%
9-12 months 6,000.605 14.18%
1-2 years 7,987,891 18.88%
Total 42,305,417 100.00%
Pooled Funds
Bond Funds
Portfolio
Yield
5.15%
5.29%
Benchmark
Yieldo
5.11%
5.15%
Total
5.22%
Portfolio Composition and Value
as of March 31,2007 80.00%
60.00%
40.00%
20.00%
0.00%
Investment Pools
66.93%
_ Mar-07
Agencies
33.07%
-.- Mar-06
_ Sep-06
Investment Maturity Schedule
as of March 31,2007
1-12 months
~'"
~
Portfolio Performance
for the month of March 2007
Weighted
Average
Maturity
3.28 months
1 day
5.13%
2.00 months
OThe pooled funds benchmark is based on the average monthly yield of a 6-month Treasury.
The bond funds benchmark yield is based on the average monthly yield of a 3-month Treasury.
The total is based on weighted average monthly benchmark yields.
Pooled Funds
Bond Funds
Total
I o Portfolio Yield
. Benchmark Yieldo I
Portfolio Earnings
for months ended March 2007
Budget Actual Percent
General 650,000 437,789 67.35%
Enterprise 98,905 66,964 67.71%
Internal Service 164,350 112,561 68.49%
Total 913,255 617,314 67.59%
500,000
400,000
300.000
200.000
100,000
Yield Curve
~:~
3.00%
2.00% .
1.00%
0.00%
3mo
)I
"It
1__
.
1yr
2yr
5yr
6mo
I-+-Jan-07
Feb-07 ___ Mar-071
General
Enterprise
Internal Service
. Budget
. Actual
WAM . Pooled Funds
0.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
--j
---1
~
Average for March
2007 2006
96.32% 93.50%
3.68% 6.50%
100.00% 100.00%
% of funds invested in:
Securities & Pools
Bank Depository
Total % of funds invested
Operating Account Balance
1_616,283
2,117.737
Jan-07
Mar-07
Feb-07
March 31,2007
This report is in full compliance with the investment strategy as
established for the pooled investment fund and the Public Funds
Investment Act (Chapter 2256),
, ~. fJtd4
Mi, ..I Dolby, CPA '!!!f-,
Int im Finance Director (j
~~Jz~J:
Phy Rinehart
Controller
6
City of La Porte, Texas
Investment Policy
Adopted by the City Council
Of the City of La Porte
On January 13, 1992, by
Ordinance No. 1802
Amended - November 1995
Amended - August 1997
Amended - November 2000
Amended - February 2003
Amended - February 2005
Amended - October 2005
City of La Porte, Texas
Michael G. Dolby, CPA
Interim Finance Director
Phyllis Rinehart
Controller
I. POLICY
It is the policy of the City of La Porte, Texas (the "City") to administer and invest its funds in a
manner which will preserve the principal and maintain the liquidity through limitations and
diversification while meeting the daily cash flow requirements of the City. The City will invest all
available funds in conformance with legal and administrative guidelines, seeking to optimize
interest earnings to the maximum extent possible.
II. PURPOSE
The purpose of this investment policy is to comply with all statutes governing the investment of
the City's funds and Chapter 2256 of the Government Code ("Public Funds Investment Act"),
which requires the City to adopt a written investment policy regarding the investment of its funds
and funds under its control. The Investment Policy addresses the methods, procedures and
practices that must be exercised to ensure effective and judicious fiscal management of the City's
funds.
III. SCOPE
The City will strive to earn a return on funds invested at the highest investment return possible
after taking in consideration the primary goals of preservation of principal and liquidity of funds
invested, consistent with the policy objectives described below. This investment policy applies to
the investment activities of the government of the City of La Porte, Texas.
FUNDS INCLUDED All financial assets of all funds managed by the City, including but not
limited to receipts of Tax Revenues, Charges for Services, Bond Proceeds, Interest Incomes,
Loans and Funds received by the City where the City performs a custodial function.
IV. OBJECTIVES
SAFETY The primary objective of the City's investment activity is the preservation of capital in
the overall portfolio. Each investment transaction shall seek first to ensure that capital losses are
avoided, whether they are from securities defaults or erosion of market value. The City will
strive to minimize credit risk by limiting investments to the safest types of investments,
prequalifying the financial institutions and broker/dealers with which the City conducts business,
and diversify the investment portfolio so that potential losses on individual issuers will be
minimized. To minimize interest rate risk, the City will ladder the portfolio and match
investments with future cash requirements and invest operating funds in shorter, more liquid
securities and investments.
LIQUIDITY The City's investment portfolio will remain sufficiently liquid to enable the City to
meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by
matching investment maturities with forecasted cash flow requirements and by investing in
securities with active secondary markets. Because all possible cash demands cannot be
anticipated, a portion of the portfolio will be invested in shares of money market mutual funds or
local government investment pools that offer same day liquidity.
PUBLIC TRUST All participants in the investment process shall seek to act responsibly as
custodians of the public trust. Investment Officials shall avoid any transaction that might impair
public confidence in the City's ability to govern effectively. The governing body recognizes that
in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and
must be considered within the context of the overall portfolio's investment return, provided that
adequate diversification has been implemented.
YIELD (Ootimization of Interest Earnings) The City's cash management portfolio shall be
designed with the objective of regularly meeting or exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the City's weighted average maturity in days.
The investment program shall seek to augment returns above this threshold consistent with risk
limitations identified herein and prudent investment principles.
V. OVERSIGHT RESPONSIBILITY
Oversight Responsibility for the investment activity of the City of La Porte shall rest with the
Fiscal Affairs Committee and the City Manager.
VI. RESPONSIBILITY AND CONTROL
DELEGATION Management responsibility for the investment program is hereby delegated to
the Director of Finance, who shall establish written procedures for the operation of the investment
program, consistent with this investment policy. Such procedures shall include explicit delegation
of authority to persons responsible for investment transactions.
SUBORDINATES All persons involved in investment activities will be referred to as
"Investment Officers." No person shall engage in an investment transaction except as provided
under the terms of this policy and the procedures established by the Director of Finance. The
Director of Finance shall be responsible for all transactions undertaken, and shall establish a
system of controls to regulate the activities of Subordinate Investment Officers.
OUARTERL Y REPORTS The Director of Finance shall submit quarterly an investment report
that summarizes recent market conditions, economic developments and anticipated investment
conditions. The report shall summarize the investment strategies employed in the most recent
quarter and describe the portfolio in terms of investment securities, maturities, risk
characteristics, book values, market values and other features. The report shall explain the
quarter's total investment return and compare the return to budgetary expectations. The report
shall include an appendix that discloses all transactions during the quarter.
ANNUAL REPORTS Within 90 days of the end of the fiscal year, the Director of Finance shall
present a comprehensive annual report on the investment program and investment activity. The
annual report shall include twelve-month and quarterly comparison of returns, and shall suggest
improvements that might be made in the investment program.
PRUDENCE Investments shall be made with the exercise of due care, which persons of
prudence, discretion and intelligence exercise in the management of their own affairs, not for
speculation but for investment considering the probable safety of their own capital as well as the
probable income to be derived. Investment Officers acting in accordance with written procedures
and this investment policy and exercising due diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes, provided deviations
from expectations are reported in a timely fashion and the liquidity and the sale of securities are
carried out in accordance with the terms of this policy.
IMDEMNIFICATION The Investment Officer, acting in accordance with written procedures
and exercising due diligence, shall not be held personally responsible for a specific investment's
credit risk or market price changes, provided that these deviations are reported immediately and
the appropriate action is taken to control adverse developments.
ETHICS DISCLOSURE AND CONFLICTS OF INTEREST Officers and employees involved
in the investment process shall refrain from personal business activity that could conflict with
proper execution and management of the investment program, or which could impair their ability
to make impartial investment decisions. Employees and Investment Officers shall disclose to the
City Manager any material interests in financial institutions that conduct business with the City of
La Porte, and shall further disclose any personal financial or investment positions that could be
related to the performance of the City's investment portfolio. Employees and Investment Officers
shall refrain from undertaking personal investment transactions with the same individual with
which business is conducted on behalf of the City of La Porte.
An Investment Officer of the City of La Porte who has a personal business relationship with an
organization seeking to sell an investment to the City of La Porte shall file a statement disclosing
that personal business interest. An Investment Officer who is related within the second degree by
affinity or consanguinity to an individual seeking to sell an investment to the City of La Porte
shall file a statement disclosing that relationship. A statement required under subsection
2256.005(i) of the PFIA must be filed with the Texas Ethics Commission and the governing body
of the City of La Porte.
TRAINING Investment Officers shall attend at least one investment training session within 12
months after taking office or assuming duties, and shall attend an investment training session not
less than once in a two-year period and receive not less than 10 hours of instruction relating to
investment responsibilities from an independent source approved by the Fiscal Affairs
Committee. For the purposes of this policy, an "independent source" is defined as a professional
organization, an institute of higher learning or any other sponsor other than a Business
Organization with whom the City may engage in investment transactions. Independent sources
that may provide investment training include the Government Treasurer's Organization of Texas,
the University of North Texas, the Government Finance Officers Association of Texas, or the
Texas Municipal League. Training shall be in accordance with the Public Funds Investment Act
and shall include education in investment controls, security risks, market risks, and compliance
with statutes governing the investment of public funds.
VII. INVESTMENTS
ACTIVE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive
portfolio management philosophy. That is, securities may be sold before they mature if market
conditions present an opportunity for the City to benefit from the trade.
AUTHORIZED INVESTMENTS Assets of funds of the government of the City of La Porte may
be invested in the following as authorized by the Public Funds Investment Act:
A. Obligations of, or Guaranteed by Governmental Entities
1. Except as provided by Subsection (b), the following are authorized investments under
this section:
a) obligations of the United States or its agencies and instrumentalities;
b) direct obligations of this state or its agencies and instrumentalities;
c) collateralized mortgage obligations directly issued by a federal agency or
instrumentality of the United States, the underlying security for which is guaranteed
by an agency or instrumentality of the United States;
d) other obligations, the principal and interest of which are unconditionally guaranteed
or insured by, or backed by the full faith and credit of, this state or the United States
or their respective agencies and instrumentalities; and
e) obligations of states, agencies, counties, cities, and other political subdivisions of any
state rated as to investment quality by a nationally recognized investment rating firm
not less than A or its equivalent.
2. The following are not authorized investments under this section:
a) obligations whose payment represents the coupon payment on the outstanding
principal balance of the underlying mortgage-backed security collateral and pays not
principal (Interest only bonded);
b) obligations whose payment represents the principal stream of cash from the
underlying mortgage-backed security collateral and pays no interest (Principal only
bonds);
c) collateralized mortgage obligations that have a final stated maturity date of greater
that 10 years; and
d) collateralized mortgage obligations, the interest rate of which is determined by an
index that adjusts opposite to the changes in a market index.
B. Certificates of Deposit and Share Certificates
1. A certificate of deposit is an authorized investment under this Subchapter if the
certificate is issued by a state or national bank domiciled in this state, a savings bank
domiciled in this state, or a state or federal credit union domiciled in this state and is:
a) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor
or the National Credit Union Share Insurance Fund or its successor;
b) secured by obligations that are described by Section 2256.009 (a), including
mortgage backed securities directly issued by a federal agency or instrumentality that
have a market value of not less than the principal amount of the certificates, but
excluding those mortgage backed securities of the nature described by Section
2256.009 (b); or
c) secured in any other manner and amount provided by law for deposits of the
investing entity.
C. Repurchase Agreements
1. A fully collateralized repurchase agreement IS an authorized investment under this
Subsection if the repurchase agreement:
a) has a defined termination date;
b) is secured by obligations described by Section 2256.009 (a)(I); and
c) requires the securities being purchased by the entity to be pledged to the entity, held
in the entity's name, and deposited at the time the investment is made with the entity
or with a third party selected and approved by the entity; and
d) is placed through a primary government securities dealer, as defined by the Federal
Reserve, or a financial institution doing business in this state.
e) repurchase agreements and reverse repurchase agreements shall be entered into only
with dealers who have executed a Master Repurchase Agreement with the City.
2. In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for
a specified time, and sell back at a future date obligations described by Subsection A,
l,a), at a market value at the time the funds are disbursed of not less than the principal
amount of the funds disbursed. The term includes a direct security repurchase agreement
and a reverse security repurchase agreement.
3. Notwithstanding any other law, the term of any reverse security repurchase agreement
may not exceed 90 days after the date the reverse security repurchase agreement is
delivered.
4. Money received by an entity under the terms of a reverse security repurchase agreement
shall be used to acquire additional authorized investments, but the term of the authorized
investments acquired must mature no later than the expiration date stated in the reverse
security repurchase agreement.
D. Banker's Acceptances
1. A banker's acceptance is an authorized investment under this subchapter if the banker's
acceptance:
a) has a stated maturity of270 days or fewer from the date of its issuance;
b) will be, in accordance with its terms, liquidated in full at maturity;
c) is eligible for collateral for borrowing from a Federal Reserve Bank; and
d) is accepted by a bank organized and existing under the laws of the United States or
any state, if the short-term obligations of the bank, or of a bank holding company of
which the bank is the largest subsidiary, are rated not less that A-lor P-l or an
equivalent rating by at least one nationally recognized credit rating agency.
E. Commercial Paper
1. Commercial paper is an authorized investment under this subchapter if the commercial
paper;
a) has a stated maturity of 270 days or fewer from the date of its issuance; and
b) is rated not less than A-lor P-I or an equivalent rating by at least;
c) two nationally recognized credit rating agencies; or
d) one nationally recognized credit rating agency and is fully secured by an irrevocable
letter of credit issued by a bank organized and existing under the laws of the United
States or any state.
F. Mutual Funds
1. A no-load money market mutual fund is an authorized investment under this subchapter
if the mutual fund:
a) is registered with and regulated by the Securities and Exchange Commission;
b) provides the investing entity with a prospectus and other information required by the
Securities and Exchange Act of 1934 (15 U.S.C. Section 80a-l et seq.);
c) has a dollar-weighted average stated maturity of90 days or fewer; and
d) includes in its investment objectives the maintenance of a stable net asset value of $1
for each share.
2. In addition to a no-load money market mutual fund permitted as an authorized investment
in Subsection (a), a no-load mutual fund is an authorized investment under this Section if
the mutual fund:
a) is registered with the Securities and Exchange Commission;
b) has an average weighted maturity of less than two years;
c) is invested exclusively in obligations approved by this subchapter;
d) is continuously rated as to investment quality by at least one nationally recognized
investment rating firm of not less than AAA or it equivalent; and
e) conforms to the requirements set forth in Sections 2256.016 (b) and (c) relating to the
eligibility of investment pools to receive and invest funds of investing entities.
3. An entity is not authorized by this section to:
a) invest in the aggregate more than 15 percent of its monthly average fund balance,
excluding bond proceeds and reserves in other funds held for debt service, in mutual
funds described in Subsection (b);
b) invest any portion of bond proceeds, reserves and funds held for debt service, in
mutual funds described in Subsection (b); or
c) invest its funds or funds under its control, including bond proceeds and reserves and
other funds held for debt service, in anyone mutual fund described in Subsection (a)
or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund.
G. Investment Pools
1. An entity may invest its funds and funds under its control through an eligible investment
pool if the governing body of the entity by rule, order, ordinance, or resolution, as
appropriate, authorizes investment in the particular pool. An investment pool shall invest
the funds it receives from entities in authorized investments permitted by this subchapter.
2. To be eligible to receive funds from and invest funds on behalf of an entity under this
chapter, an investment officer or other authorized representative of the entity an offering
circular or other similar disclosure instrument that contains, at a minimum, the following
information:
a) the types of investments in which money is allowed to be invested;
b) the maximum average dollar-weighted maturity allowed, based on the stated maturity
date, of the pool;
c) the maximum stated maturity date any investment security within the portfolio has;
d) the objectives of the pool;
e) the size of the pool;
f) the names of the members of the advisory board of the pool and the dates their terms
expIre;
g) the custodian bank that will safekeep the pool's assets;
h) whether the intent of the pool is to maintain a net asset value of one dollar and the
risk of market price fluctuation;
i) whether the only source of payment is the assets of the pool at market value or
whether there is a secondary source of payment, such as insurance or guarantees, and
a description of the secondary source of payment;
j) the name and address of the independent auditor ofthe pool;
k) the requirements to be satisfied for an entity to deposit funds in and withdraw funds
from the pool and any deadlines or other operating policies required for the entity to
invest funds in and withdraw funds from the pool; and
1) the performance history of the pool, including yield average dollar-weighted
maturities, and expense ratios.
3. To maintain eligibility to receive funds from and invest funds on behalf of an entity under
this chapter, an investment pool must furnish to the investment officer or other
authorized representative of the entity:
a) investment transaction confirmations; and
b) a monthly report that contains, at a minimum, the following information:
1. the types and percentage breakdown of securities in which the pool is invested;
11. the current average dollar-weighted maturity, based on the stated maturity date,
of the pool;
111. the current percentage of the pool's portfolio in investments that have stated
maturities of more than one year;
IV. the book value versus the market value of the pool's portfolio, usmg the
amortized cost valuation;
v. the size of the pool;
VI. the number of participants in the pool;
V11. the custodian bank that is safekeeping the assets of the pool;
V111. a listing of daily transaction activity of the entity participating in the pool;
IX. the yield and expense ratio of the pool;
X. the portfolio managers of the pool; and
Xl. any changes or addenda to the offering circular.
4. An entity by contract may delegate to an investment pool the authority to hold legal title
as custodian of investments purchased with its local funds.
5. In this section, "yield" shall be calculated in accordance with regulations governing the
registration of open-end management investment companies under the Investment
Company Act of 1940, as promulgated from time to time by the Federal Securities and
Exchange Commission.
6. To be eligible to receive funds from and invest funds on behalf of an entity under this
chapter, a public funds investment pool created to function as a money market mutual
fund must mark its portfolio to market daily, and, to the extent reasonably possible,
stabilize a $1 net asset value. If the ratio of the market value of the portfolio divided by
the book value ofthe portfolio is less than 0.995 or greater than 1.005, portfolio holdings
shall be sold as necessary to maintain the ratio between 0.995 and 1.005.
7. To be eligible to receive funds from and invest funds on behalf of an entity under this
chapter, a public funds investment pool must have an advisory board composed:
a) equally of participants in the pool and other persons who do not have a business
relationship with the pool and are qualified to advise the pool, for a public funds
investment pool created under Chapter 791 and managed by a state agency; or
b) of participants in the pool and other persons who do not have a business relationship
with the pool and are qualified to advise the pool, for other investment pools.
8. To maintain eligibility to receive funds from and invest funds on behalf of an entity under
this chapter, an investment pool must be continuously rated no lower that AAA or AAA-
m or at an equivalent rating by at least one nationally recognized rating service.
EXISTING INVESTMENTS Any investments currently held that do not meet the guidelines of
this policy shall be reviewed to determine the ability to liquidate. If the investment cannot be
liquidated because of material adverse change in the value since the time of purchase, and holding
the investment to maturity does not negatively affect disbursements or cash flow, a
recommendation of holding said investment to maturity is acceptable.
PROCUREMENT Investments of subsections A-G of this section may be made only after
competitive bids are solicited from at least three sources, with the exception of a) transactions
with money market mutual funds and local government investment pools, and b) treasury and
agency securities purchased at issue through an approved broker/dealer or financial institution.
MONITORING The market value of each investment shall be obtained monthly from a source
such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service
and reported on the monthly investment reports.
LENGTH OF INVESTMENTS The maximum stated maturity, from the date of purchase, for
any individual investment may not exceed 5 years and the maximum dollar-weighted average
maturity for the pooled fund group (investment portfolio) may not exceed 2 years.
DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment portfolios.
Assets held in the common investment portfolio shall be diversified to eliminate the risk of loss
resulting from one concentration of assets in a specific maturity, a specific issuer or a specific
class of securities. Diversification strategies shall be determined and revised periodically by the
Fiscal Affairs Committee.
In establishing specific diversification strategies, the following general policies and constraints
shall apply:
A. Portfolio maturities shall be staggered in a way that protects interest income from the
volatility of interest rates and that avoids undue concentration of assets in a specific maturity
sector. Securities shall be selected which provide for stability of income and reasonable
liquidity. The City shall continually invest a portion of the portfolio in readily available
funds such as local government investment pools (LGIPs), money market funds or overnight
repurchase agreements to ensure that appropriate liquidity is maintained in order to meet
ongoing obligations.
B. The Fiscal Affairs Committee shall establish strategies and guidelines for the percentage of
the total portfolio that may be invested in securities other than repurchase agreements,
Treasury bill and notes, or insured and collateralized certificates of deposits. The Fiscal
Affairs Committee shall conduct a semi-annual review of these guidelines, and shall
evaluate the probability of market and default risk in various investment sectors as part of its
considerations.
FINANCIAL INSTRUMENTS Maximum allowable percentages of the total portfolio for
investments are stated as follows:
Investment Type
1. Investment Pools
2. Money Market Accounts
3. Certificates of Deposit
4. U.S. Government Securities
5. U.s. Agency Securities
6. Municipal Securities
7. Repurchase Agreements
8. Bankers' Acceptance Bonds
9. Commercial Paper
VIII. SELECTION OF BANKS AND DEALERS
Maximum Limit
100%
10%
60%
80%
80%
20%
50%
35%
35%
BIDDING PROCESS Depositories shall be selected through the City's banking services
procurement process, which shall include a formal request for proposal (RFP) issued every three
(3) years. In selecting depositories, the credit worthiness of institutions shall be considered, and
the Director of Finance shall conduct a comprehensive review of prospective depositories credit
characteristics and financial history.
INSURABILITY Banks and Savings & Loans Associations seeking to establish eligibility for
the City's competitive certificate of deposit purchase program, shall submit financial statements,
evidence of Federal insurance and other information as required by the Director of Finance.
PRIMARY DEALERS AND APPROVED LIST For brokers and dealers of government
securities, Investment Officers shall select only those dealers reporting to the Market Reports
Division of the Federal Reserve Bank of New York, also known as "primary government
securities dealers," unless a comprehensive credit and capitalization analysis reveals that other
firms are adequately financed to conduct public business. Before engaging in investment
transactions with a broker/dealer, the Investment Officer shall have received, from a Qualified
Representative of said firm, a signed Certification Form. (Exhibit B) This form shall attest that
the individual responsible for the City's account with that firm has (1) received and reviewed the
investment policy of the entity; and (2) acknowledged that the business organization has
implemented reasonable procedures and controls in an effort to preclude investment transactions
conducted between the entity and the organization that are not authorized by the entity's
investment policy, except to the extent that this authorization is dependent on an analysis of the
makeup of the entity's entire portfolio or requires an interpretation of subjective investment
standards. Investment Officers of the City may not acquire or otherwise obtain any authorized
investment described in the investment policy from a person who has not delivered a signed
Certification Form. The Fiscal Affairs Committee shall at least annually review, revise, and
adopt a list of qualified brokers that are authorized to engage in investment transactions with the
City. (Exhibit A)
IX. SAFEKEEPING AND CUSTODY
INSURANCE OR COLLATERAL All bank deposits, certificates of deposit, and repurchase
agreements shall be secured by pledged collateral. Bank deposits and certificates of deposit shall
be collateralized with a market value equal to no less than 102% of the deposits plus accrued
interest less than an amount insured by FDIC. Repurchase agreements shall be monitored daily.
Evidence of the pledged collateral shall be maintained by the Director of Finance or a third party
financial institution. Repurchase agreements shall be documented by specific agreement noting
the collateral pledged in each agreement. Collateral shall be reviewed monthly to assure the
market value of the securities pledged equals or exceeds the related bank balances.
SAFEKEEPING AGREEMENT All safekeeping arrangements shall be in accordance with a
Safekeeping Agreement approved by the Fiscal Affairs Committee which clearly defines the
procedural steps for gaining access to the collateral should the City of La Porte determine that the
City's funds are in jeopardy. The safekeeping institution, or Trustee, shall be the Federal Reserve
Bank or an institution not affiliated with the firm pledging the collateral. The safekeeping
agreement shall include the signatures of the City of La Porte, the firm pledging the collateral,
and the Trustee.
COLLATERAL DEFINED The City of La Porte shall accept only the following securities as
collateral:
A. FDIC insurance coverage;
B. United States Treasuries and Agencies;
C. Texas State, City, County, School or Road District bonds with a remaining maturity of ten
(10) years or less with rating from a nationally recognized investment rating firm and having
received a rating of not less than A or its equivalent;
D. Other securities as approved by the Fiscal Affairs Committee.
SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of
Finance or the City's independent auditors.
DELIVERY VERSUS PAYMENT All investment transactions, with the exception of local
government investment pools and mutual fund transactions, shall be purchased using the delivery
versus payment method. That is, funds shall not be wired or paid until verification has been made
that the collateral was received by the Trustee. The collateral shall be held in the name of the
City or held on behalf of the City. The Trustee's records shall assure the notation of the City's
ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall
be delivered to the City.
X. MANAGEMENT AND INTERNAL CONTROLS
The Director of Finance shall establish a system of internal controls, which shall be reviewed by
an independent auditor. The controls shall be designed to prevent losses of public funds arising
from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial
markets, or imprudent actions by employees or Investment Officers of the City.
Controls and managerial emphasis deemed most important that shall be employed where practical
are:
A. Control of collusion.
B. Separation of duties.
C. Separation of transaction authority from accounting and record keeping.
D. Custodian safekeeping receipts records management.
E. Avoidance of physical delivery securities.
F. Clear delegation of authority.
G. Documentation on investment bidding events.
H. Written conformation of telephone transactions.
I. Reconcilement and comparisons of security receipts with the investment subsidiary records.
J. Compliance with investment policies.
K. Accurate and timely reports.
L. Validation of investment maturity decisions with supporting cash flow data.
M. Adequate training and development of Investment Officers.
N . Verification of all interest income and security purchase as sell computations.
O. Review of financial condition of all brokers, dealers and depository institutions.
P. Staying informed about market conditions, changes, and trends that require adjustments in
investment strategies.
COMPLIANCE AUDIT The City of La Porte shall perform, in conjunction with its annual
financial audit, a compliance audit of management controls on investments and adherence to the
entity's established investment policies. The audit shall include a formal review of the quarterly
investment reports by an independent auditor and the results reported to the governing body by
the independent auditor. Also, the governing body shall review its investment policy and
investment strategy not less than annually and adopt a written instrument by rule, order,
ordinance, or resolution stating that it has reviewed the investment policy and strategy, and
recorded any changes made to them.
Exhibit A
City of La Porte
Approved List of Brokersillealers and Investment Pools
Brokersillealers
Coastal Securities
Wells Fargo
Duncan Williams, Inc.
Morgan Stanley, Inc.
Investment Pools
TexPool
LOGIC Investment Pool
TexST AR
Exhibit B
BROKER/DEALER CERTIFICATION FORM
As required by Texas Government Code 2256.005 (k-l)
CITY OF LA PORTE, TEXAS
This certification is executed on behalf of (the Investor)
and (the Dealer) pursuant to the Public Funds
Investment Act, Chapter 2256, Government Code, Texas Codes Annotated (the Act) in
connection with investment transactions conducted between the Investor and Dealer.
The Undersigned Qualified Representative of the Dealer hereby certifies on behalf of the
Dealer that:
1. The Dealer Qualified Representative IS duly authorized to execute this
Certification on behalf of the Dealer, and
2. The Dealer Qualified Representative has received and reviewed the Investment
Policy furnished by the Investor, and
3. The Dealer has implemented reasonable procedures and controls in an effort to
preclude investment transactions conducted between the Dealer and the Investor
that are not authorized by the entity's investment policy, except to the extent that
this authorization is dependent on an analysis of the makeup of the entity's entire
portfolio or requires an interpretation of subjective investment standards.
Dealer Qualified Representative
Signature
Name (Printed):
Title:
Date:
Exhibit C
City of La Porte, Texas
Investment Strategy Statement
The City of La Porte, Texas (the "City") will strive to administer and invest its pooled
funds at the highest investment return possible while always taking into account the
primary goals of preservation of principal and liquidity of funds invested consistent with
the City's investment policy.
The City's funds, which are pooled together and constitute the investment portfolio,
include all financial assets of all funds managed by the City, including but not limited to
receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and
funds received by the City where the City performs a custodial function.
The City will never invest its funds in a security that is deemed unsuitable to the financial
requirements of the City. Maturities will be staggered in a manner that meets the cash
flow needs ofthe City.
The primary investment objective is the preservation and safety of principal. Each
investment transaction shall seek first to ensure that principal losses are avoided, whether
they are from security defaults or erosion of market value.
The City's investment portfolio will remain sufficiently liquid to enable the City to meet
operating requirements that might be reasonably anticipated. Liquidity shall be achieved
by matching investment maturities with forecasted cash flow requirements and by
investing in securities with active secondary markets.
The City shall always maintain a highly diversified investment portfolio in order to
reduce the amount of credit and market risk exposed to the City's portfolio.
After first considering safety and liquidity, the City's investment portfolio shall be
designed with the objective of regularly exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the City's weighted average maturity in
days. The City shall seek to augment returns above this threshold consistent with risk
limitations identified in the City's investment policy and prudent investment principles.
INTERLOCAL AGREEMENT
FOR
COOPERATIVE PURCHASING
FOR
ACTUARIAL SHARED SERVICES
THIS INTERLOCAL AGREEMENT ("Agreement"), made and entered into pursuant to the Texas Interlocal
Cooperation Act, Chapter 791, Texas Government Code (the "Act"), by and between the North Central Texas Council of
Governments, hereinafter referred to as "NCTCOG," having its principal place of business at 616 Six Flags Drive,
Arlington, Texas 76011, and the City of La Porte, a local government, created and operated to provide one or more
governmental functions and services, hereinafter referred to as "Participant," having its principal place of business at:
604 W. Fairmont Parkway, La Porte, Texas 77571.
WITNESETH
WHEREAS, NCTCOG is a regional planning commission and political subdivision of the State of Texas operating
under Chapter 391, Texas Local Government Code; and
WHEREAS, pursuant to the Act, NCTCOG is authorized to contract with eligible entities to perform governmental
functions and services, including the development of a standard approach for acquiring actuarial services; and
WHEREAS, in reliance on such authority, NCTCOG has a cooperative purchasing program under which it contracts
with eligible entities under the Act; and
WHEREAS, Participant has represented that it is an eligible entity under the Act, that by Administrative Action has
authorized this Agreement on (Date)* and that it desires to contract with NCTCOG on the
terms set forth below;
NOW, THEREFORE, NCTCOG and the PARTICIPANT do hereby agree as follows:
ARTICLE 1: LEGAL AUTHORITY
The Participant represents and warrants to NCTCOG that (1) it is eligible to contract with NCTCOG under the Act
because its a local government, as defmed in the Act, and (2) it possesses adequate legal authority to enter into this
Contract.
ARTICLE 2: APPLICABLE LAWS
NCTCOG and the Participant agree to conduct all activities under this Agreement in accordance with all applicable rules,
regulations, and ordinances and laws in effect or promulgated during the term of this Agreement.
ARTICLE 3: WHOLE AGREEMENT
This Agreement and any attachments, as provided herein, constitute the complete contract between the parties hereto, and
supersede any and all oral and written agreements between the parties relating to matters herein.
ARTICLE 4: BILLINGS
Billings will be generated for the Actuarial Shared Services through Gabriel Roeder Smith & Company and will include
an Administrative Fee of$100 per valuation cycle (annually or biennially) payable to NCTCOG.
ARTICLE 5: CHANGES AND AMENDMENTS
This Agreement may be amended only by a written amendment executed by both parties, except that any alternations,
additions, or deletions to the terms of this Agreement which are required by changes in Federal and State law or
regulations are automatically incorporated into this Agreement without written amendment hereto and shall become
effective on the date designated by such law or regulation.
NCTCOG reserves the right to make changes in the scope services offered through the Cooperative Purchasing Program
to be performed hereunder.
TillS INSTRUMENT HAS BEEN EXECUTED IN TWO ORIGINALS BY THE PARTIES HERETO AS
FOLLOWS:
* Denotes required fields
NOTE: Facsimile covies of this document shall not be accevtable as ORIGINALS.
_Interstate vI rev. 10/05
* City of La Porte
Name of Participant (local government, agency, or non-profit
corporation)
North Central Texas Council of Governments
616 Six Flags Drive, Arlington, Texas 76011
* 604 W. Fairrnont Parkway
Mailing Address
* La Porte
City
*Bv:
Signature of Authorized Official
Tx
State
77571
ZIP Code
*
Typed Name of Authorized Official
*Bv:
Signature of Authorized Official
*
* John Joerns
Typed Name of Authorized Official
Typed Title of Authorized Official Date
* Interim City Manager
Typed Title of Authorized Official Date
GRS
Gabriel Roeder Smith & Company
Consultants & Actuaries
5605 N. MacArthur Blvd.
Suite 870
Irving, TX 75038-2631
469.524.0000 phone
469.524.0003 fax
www.gabrielroeder.com
MASTER AGREEMENT
Pursuant to the award of Joint Actuarial Services by the North Central Texas Council of
Governments (NCTCOG), this agreement confirms the terms under which the City of La
Porte hereinafter referred to as 'CONTRACTING GOVERNMENT" has engaged
Gabriel, Roeder, Smith & Co. hereinafter referred to as "GRS" to perform actuarial
consulting services. In as much as this relationship will involve several actuarial reviews
and other services that will be governed by the Request for Proposal issued by NCTCOG
on May 31, 2006 and our subsequent response to that proposal, we have agreed to
establish this "master agreement" defining the general terms and conditions for all work
performed.
This agreement will not, by itself, authorize the performance of any services. Rather
specific services will be authorized through a separate engagement letter that references
this master agreement and details the services to be provided and the timeframe and fees
required. In the event of an inconsistency between this master agreement and an
individual engagement letter, the master agreement will be followed.
As described in the above referenced Request for Proposal the following terms apply:
A. Tax Exempt Entities. CONTRACTING GOVERNMENT is exempt from
manufacturer's federal excise tax and states sales tax. Tax exemption certificates
will be issued upon request.
B. Role of NCTCOG. NCTCOG has served as a facilitator to the RFP and award
process but the contractual relationship is between GRS and the CONTRACTING
GOVERNMENT.
C. A!!:!!:re!!:ate Information. GRS agrees to supply NCTCOG with the specified
results from the valuations and to aggregate that information with that of other
governments for the purpose of benchmarking.
D. Fees. GRS agrees to follow the attached pricing schedule ("Attachment A") for
pricing of its services.
I. Review of Char!!:es. CONTRACTING GOVERNMENT has the right to review
the supporting documentation for any hourly charges or out of pocket expenses
assessed to the CONTRACTING GOVERNMENT under the fee schedule.
1. Termination. Both CONTRACTING GOVERNMENT and GRS will have the
right to terminate this agreement through written notice. CONTRACTING
GOVERNMENT will pay any charges or prorate fees incurred to the date the
termination notice is received and actuary will cease any in progress work unless
specific stopping points are provided in the letter.
K. Work Product. The final work product will be the property of the
CONTRACTING GOVERNMENT to be used as stated in the specific engagement
letter. Ancillary use of the product is permitted but GRS is not responsible for the
reliability of those projections. It is understood that all reports are subject to the
open records laws ofthe State of Texas and the contracting jurisdiction.
L. Independent Contractor. All the services provided by GRS will be as an
independent contractor. None of the terms in the engagement letter will be
interpreted to create an agency or employment relationship.
M. Biennial Reviews. CONTRACTING GOVERNMENT agrees to provide census
data in off years using the same cut off date and delivery dates as used for the year
of review. Actuary agrees to review the off year census data and provide
CONTRACTING GOVERNMENT with timely feedback regarding deficiencies in
the data.
N. Term. The term of this master agreement will be governed by the afore referenced
NCTCOG RFP and will expire on September 30,2012.
O. Complete Ae:reement. This letter combined with the specific engagement letter
and as clarified by the RFP and Proposal set forth the entire agreement between the
CONTRACTING GOVERNMENT and GRS.
P. Indemnification. GRS covenants and agrees to indemnify and hold harmless and
defend and does hereby indemnify, hold harmless, and defend NCTCOG and
CONTRACTING GOVERNMENTS, its officers and employees, from and against
any and all suits or claims for damages or injuries, including death, to persons or
property, whether real or asserted, arising out of any negligent act or omission on
the part of the contractor, its officers, agents, servants, employees, or
subcontractors, and the contractor does hereby assume all liability for injuries,
claims or suits for damages to persons, property, or whatever kind of character,
whether real or asserted, occurring during or arising out of the performance of a
contract as a result of any negligent act or omission on the part of the contractor, its
officers, agents, servants, employees, or subcontractors to the extent permitted by
law. Please review this master agreement letter and the attached schedules and
indicate your acceptance by having an official of CONTRACTING
GOVERNMENT sign below.
Q. Force Maieure. A force majeure event shall be defined to include governmental
decrees or restraints, acts of God (except that rain, wind, flood or other natural
phenomena normally expected for the locality, shall not be construed as an act of
God), work stoppages due to labor disputes or strikes, fires, explosions, epidemics,
riots, war, rebellion, and sabotage. If a delay or failure of performance by either
party to this contract results from the occurrence of a force majeure event, the delay
Gabriel Roeder Smith & Company
shall be excused and the time fixed for completion of the work extended by a period
equivalent to the time lost because of the event.
R. Professional Standards. GRS will provide qualified personnel for each
engagement and follow all professional standards ascribed by the American
Academy of Actuaries and the Governmental Accounting Standards Board.
GABRIEL, ROEDER, SMITH & CO.
By:
Date:
Title:
CONTRACTING GOVERNMENT
By
Date:
Title:
Gabriel Roeder Smith & Company
Attachment A
Pricing of Services
Employer
First Year Hourly Rate for
Governments by Total OPEB Participants Annual Biennial Options Study Additional
Services
1 Less than 100-lnsured 1 health plan $4,000 $5,000 $750/Study See Below
la Less than 100-per additional health or
retirement plan $1,000 $1,000 $750/Studv See Below
2 Between 100 and 249-lnsured 1 health
plan $4,500 $5,500 $750/Study See Below
2a Between 100 and 249-per additional
health or retirement plan $1,000 $1,000 $750/Study See Below
3 Between 100 and 249-Self Insured 1
health plan $6,000 $7,000 $750/Study See Below
3a Between 100 and 249-per additional self
insured health or retirement plan $1,000 $1,000 $750/Study See Below
4 Between 250 and 499-lnsured 1 health
plan $4,500 $5,500 $750/Study See Below
4a Between 250 and 499-per additional
health or retirement plan $1,000 $1,000 $750/Study See Below
5 Between 250 and 499-Self Insured 1
health plan $6,000 $7,000 $750/Studv See Below
5a Between 250 and 499-per additional self
insured health or retirement plan $1,000 $1,000 $750/Study See Below
6 Between 500 and 749-lnsured 1 health
plan $4,500 $5,500 $750/Study See Below
6a Between 500 and 749-per additional
health or retirement plan $1,000 $1,000 $750/Study See Below
7 Between 500 and 749-SelfInsured 1
health plan $6,000 $7,000 $750/Study See Below
7a Between 500 and 749-per additional self
insured health or retirement plan $1,000 $1,000 $750/Study See Below
8 Between 750 and 999-lnsured 1 health
plan $4,500 $5,500 $750/Study See Below
8a Between 750 and 999-per additional
health or retirement plan $1,000 $1,000 $750/Study See Below
9 Between 750 and 999-SelfInsured 1
health plan $6,000 $7,000 $750/Study See Below
9a Between 750 and 999-per additional self
insured health or retirement plan $1,000 $1,000 $750/Study See Below
10 Between 1000 and 1499-lnsured 1 health
plan $5,000 $6,000 $750/Study See Below
lOa Between 1000 and 1499-per additional
health or retirement plan $1,000 $1,000 $750/Study See Below
11 Between 1000 and 1499-Self Insured 1
Gabriel Roeder Smith & Company
health plan $6,500 $7,500 $750/Study See Below
lla Between 1000 and 1499-per additional
self insured health or retirement plan $1,000 $1,000 $750/Study See Below
12 Between 1500 and 1999-lnsured 1 health
plan $5,000 $6,000 $750/Study See Below
12a Between 1500 and 1999-per additional
health or retirement plan $1,000 $1,000 $750/Study See Below
13 Between 1500 and 1999-SelfInsured 1
health plan $6,500 $7,500 $750/Study See Below
13a Between 1500 and 1999-per additional
self insured health or retirement plan $1,000 $1,000 $750/Study See Below
14 Between 2000 and 2499-lnsured 1 health
plan $5,000 $6,000 $750/Study See Below
14a Between 2000 and 2499-per additional
health or retirement plan $1,000 $1,000 $750/Study See Below
15 Between 2000 and 2499-Self Insured 1
health plan $6,500 $7,500 $750/Study See Below
15a Between 2000 and 2499-per additional
self insured health or retirement plan $1,000 $1,000 $750/Study See Below
16 Between 2500 and 5000-Self Insured 1
health plan $7,000 $8,000 $750/Study See Below
16a Between 2500 and 5000-per additional
self insured health or retirement plan $1,500 $1,500 $750/Study See Below
Gabriel Roeder Smith & Company
Plans (if applicable
First Year Hourly Rate for
Governments by Total OPEB Participants Annual Biennial Options Study Additional
Services
1 Less than 100-lnsured 1 health plan $0 $0 $750/Study See Below
la Less than 100-per additional health or
retirement plan $0 $0 $750/Study See Below
2 Between 100 and 249-lnsured I health
plan $0 $0 $750/Study See Below
2a Between 100 and 249-per additional
health or retirement plan $0 $0 $750/Study See Below
3 Between 100 and 249-Self Insured I
health plan $0 $0 $750/Study See Below
3a Between 100 and 249-per additional self
insured health or retirement plan $0 $0 $750/Study See Below
4 Between 250 and 499-lnsured I health
plan $0 $0 $750/Study See Below
4a Between 250 and 499-per additional
health or retirement plan $0 $0 $750/Study See Below
5 Between 250 and 499-Self Insured 1
health plan $0 $0 $750/Study See Below
5a Between 250 and 499-per additional self
insured health or retirement plan $0 $0 $750/Study See Below
6 Between 500 and 749-lnsured 1 health
plan $0 $0 $750/Study See Below
6a Between 500 and 749-per additional
health or retirement plan $0 $0 $750/Study See Below
7 Between 500 and 749-SelfInsured 1
health plan $0 $0 $750/Study See Below
7a Between 500 and 749-per additional self
insured health or retirement plan $0 $0 $750/Study See Below
8 Between 750 and 999-lnsured 1 health
plan $0 $0 $750/Study See Below
8a Between 750 and 999-per additional
health or retirement plan $0 $0 $750/Study See Below
9 Between 750 and 999-SelfInsured 1
health plan $0 $0 $750/Study See Below
9a Between 750 and 999-per additional self
insured health or retirement plan $0 $0 $750/Study See Below
10 Between 1000 and 1499-lnsured 1 health
plan $0 $0 $750/Study See Below
lOa Between 1000 and 1499-per additional
health or retirement plan $0 $0 $750/Study See Below
11 Between 1000 and 1499-Self Insured 1
health plan $0 $0 $750/Study See Below
11a Between 1000 and 1499-per additional
self insured health or retirement plan $0 $0 $750/Study See Below
12 Between 1500 and 1999-lnsured 1 health
plan $0 $0 $750/Study See Below
Gabriel Roeder Smith & Company
4812 Between 1500 and 1999-per additional
a health or retirement plan $0 $0 $750/Study See Below
13 Between 1500 and 1999-SelfInsured 1
health plan $0 $0 $750/Study See Below
13a Between 1500 and 1999-per additional
self insured health or retirement plan $0 $0 $750/Study See Below
14 Between 2000 and 2499-lnsured 1 health
plan $0 $0 $750/Study See Below
14a Between 2000 and 2499-per additional
health or retirement plan $0 $0 $750/Study See Below
15 Between 2000 and 2499-Self Insured 1
health plan $0 $0 $750/Study See Below
15a Between 2000 and 2499-per additional
self insured health or retirement plan $0 $0 $750/Study See Below
16 Between 2500 and 5000-Self Insured 1
health plan $0 $0 $750/Study See Below
16a Between 2500 and 5000-per additional
self insured health or retirement plan $0 $0 $750/Study See Below
.:. For the first valuation, the prices above include a mandatory kick-off meeting to begin
the project and a meeting to present the findings. If the second meeting can take place
either via web cast or through a conference call, we will discount the above valuation fees
by $500.
.:. For subsequent valuations, we anticipate the kickoff meeting to be via conference call or
web cast. For any participant, if the meeting to present the results can take place either
via web cast or through a conference call, we will discount the above valuation fees by
$500.
.:. Pricing assumes 20% paid upon acceptance by the government of the engagement, 50%
upon receipt ofthe draft report and 30% upon acceptance of the final report.
.:. Fees for additional services and optional services that are not determined as 'basic' will
be based on the following rates:
GRS Position Title
Hourly Rates
Senior Consultant
$350
$275
$175
$150
$200
$110
Consultants
Senior Analysts
Actuarial Analysts
Systems Analysts and Programmers
Administrative Support Staff
Gabriel Roeder Smith & Company
;--
('
City of La Porte
Interoffice Memorandum
To:
Fiscal Affairs Committee
From:
John Joems, Interim City
Date:
May 23,2007
Subject:
Habitat for Humanity Prese
Habitat for Humanity has requested a place on your agenda to discuss issues/pressures they are facing and
the Committee's/City's policy regarding disposition of delinquent tax properties and potentially other
property.
The Committee's policy has been to get market value or at least the adjudged value (HCAD value) for
these properties.
Habitat for Humanity has seen press releases that note the donation of City property as part of grant
applications and awards.
Habitat for Humanity will wish to discuss additional considerations for their program here in La Porte.
c: Mayor and City Council
Michael Dolby, Interim Finance Director
JJ:cns