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CITY COUNCIL MEETING/WORK SESSION
CITY OF UNIVERSITY PARK, TEXAS
CITY HALL CONFERENCE ROOM
FRIDAY, JUNE 18, 2004 AT 7.'30AM
i. ITEMS FROM THE FLOOR
Anyone wishing to address an item not on the Agenda or having questions about
items on the Consent Agenda should do so at this time. Questions and comments
regarding Main Agenda items may be made when that item is addressed by the
City Council.
ii. PRESENTATION: By Alex Del Carmen, Ph.D. on Independent Commission on
Racial Profiling
iii. CONSENT AGENDA A. CONSIDER: Resolutions amending City Investment Policy and approving
participation in TexasTERM local government investment pool - Austin Tab I
B. CONSIDER: Bid on annual contract for fuels - Green Tab II
C. CONSIDER: Approval of City Council Meeting Minutes for June 1, 2004 -
Wilson Tab III
IV. MAIN AGENDA A. CONSIDER: Property, Casualty, Liability & Workers Compensation
Insurance Renewal - Livingston Tab IV
B. DISCUSS & ACTION: On whether to modify or change prior city council's
action and design of the restoration of City Hall
C. DISCUSS: Schedule for construction of water and sanitary sewer
improvements in the area east of Caruth Park - Smallwood Tab V
D. DISCUSS: Prospects for a paperless agenda - Criswell Tab VI
As authorized by Section 551.071(2) of the Texas Government Code, this meeting may
be convened into Closed Executive Session for the purpose of seeking confidential legal
advice from the City Attorney on any agenda items listed herein.
9:00-9:15AM:
EXECUTIVE SESSION REGARDING PERSONNEL ITEMS
WITH RESPECT TO TMRS AND FRRF AND FOR
CONSULTATION WITH CITY ATTORNEY REGARDING
POTENTIAL LITIGATION UNDER SECTIONS 551.071 AND
551.074 OF THE TEXAS GOVERNMENT CODE - Tab VII
AGENDA MEMO
(06/011t/04 AGENDA)
DATE:
TO:
FROM:
SUBJECT:
June 9, 2004
Honorable Mayor and City Council
Kent R. Austin, Director of Finance
Resolutions amending City Investment Policy and approving participation in
TexasTERM local government investment pool
ITEM:
The Texas Public Funds Investment Act (PFIA) requires that a city's governing body "review its
investment policy and investment strategies not less than annually" and that the policy be adopted
by rule, order, ordinance, or resolution. The City Council last approved University Park's
Investment Policy via resolution in August 2003.
Staff proposes to modify the investment policy by adding TexasTERM as an authorized investment
for the City. TexasTERM is a professionally managed pool consisting of high quality fixed-term
investments (U. S. government agency and Treasury securities, collateralized repurchase
agreements, collateralized certificates of deposit, and SEC-regulated money market mutual funds).
Unlike the City's current investment pools, TexPool and TexSTAR, which offer daily liquidity and
floating daily rates, TexasTERM offers participants a fixed-term, fixed rate investment for up to
one year. The result is a product with the benefits of a CD and the safety of a large pool.
City staff and the Finance Advisory Committee met with Susan Anderson, Senior Managing
Consultant for TexasTERM, in February 2004 to learn more about the pool. At their May 18
meeting, the Committee recommended that the City modify its investment policy to authorize
participation in TexasTERM.
Other highlights of the City's investment policy include:
· Emphasis on safety of principal first, liquidity second, and yield third;
· Listing of eligible investments, including U.S. Treasury and agency securities and specific
local government investment pools but excluding commercial paper and collateralized
mortgage obligations;
· Requirements for quarterly investment reporting and 'marking to market' to reflect fair market
value of securities held by the City;
· Use of delivery versus payment for settlement of investment transactions;
· Establishment of asset allocation limits (for example, maximum 60% for U.S. agencies and
50% for local government investment pools);
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
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· Limitation of maximum portfolio weighted average maturity to 548 days (1.5 years) and no
final stated maturities longer than five years for individual securities; and
· Designation of the Finance Advisory Committee as the City's investment committee.
In the interest of brevity, I have omitted the appendices from the attached 18-page investment
policy. These appendices consist of boilerplate language regarding State investment legislation,
master repurchase agreement, broker/dealer certification, and broker/dealer questionnaire. They
remain unchanged from last year.
RECOMMENDATION:
City staff and the Finance Advisory Committee recommend approval of the attached resolutions
amending the Investment Policy and authorizing participation in TexasTERM. The resolution
names the Finance Director, City Manager, and Controller as investment officers.
ATTACHMENTS:
· Finance Advisory Committee draft meeting minutes, May 18, 2004
· Resolution adopting City investment policy
· Proposed City investment policy sans appendices
· Resolution approving participation in TexasTERM
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
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CITY OF UNIVERSITY PARK, TEXAS
FINANCE ADVISORY COMMITTEE
TUESDAY, MAY 18, 2004 at 7:30 A.M.
MINUTES
Committee members attending:
Atwood, John
Edwards, Richard
Harralson, Howell
Kelley, Terry
Mahon, Ed
Others present:
Austin, Kent
Absent:
Davis, Dick - Council member
Olmsted, Bob
Stuart, John
Call to order.
Chairman Bob Olmsted was unable to attend. Kent Austin called the meeting to order at 7:40
a.m. with members Atwood, Harralson, Kelley, and Mahon present
Review/approve minutes of February 11, 2004 meeting.
John Atwood moved approval of the February 11, 2004 meeting minutes. Ed Mahon
seconded, and the motion was approved 4-0.
Discuss/consider recommendation for City Hall and major projects funding.
Committee member Richard Edwards arrived. Austin briefed the Committee on staff' s
recommended funding plan for the City Hall renovation, Lovers Lane II reconstruction, and
Northwest Parkway screening wall projects. The plan, provided in the Committee's agenda
packet, recommends assembling funds for the projects from a combination of budgeted
monies and fund balance drawdowns in the General Fund and Utility Fund. Austin noted that
for FY2004 the plan includes a transfer of $3.45 million to the Capital Projects Fund for the
City Hall Renovation project (no. 43700). Of this total, $2.2 million is from the General Fund
and $1.25 million is from the Utility Fund. After discussion, Terry Kelly moved approval of
the funding plan and fund balance drawdowns. John Atwood seconded, and the motion was
approved 5-0.
Review January-March 2004 City investment report.
The Committee reviewed the quarterly investment report for the period ended March 31,
2004. The City's portfolio market value totaled $50,181,909 and earned a weighted average
return of 1.618%, down from the prior quarter's 1.757%. The 3/31/04 portfolio composition
consisted of 50.6% U.S. agencies, 29.4% investment pools, 14.1% certificates of deposit, and
6.0% U.S. Treasuries. No action was taken. Terry Kelley departed the meeting.
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Consider amendment of City investment poficy to approve TexasTERM as an authorized
investment pool for the City of University Park.
The Committee discussed modifying the City's investment policy to add the TexasTERM
investment pool as an authorized investment. This subject had been discussed at the February
11, 2004 Committee meeting, when members met with senior portfolio manager Susan
Anderson. John Atwood moved approval of TexasTERM for inclusion in the City investment
policy. Howell Harralson seconded, and the motion was approved 4-0.
Follow-up items.
a. FY2003 audit - Kent Austin informed the Committee that the FY2003 audit was
concluding and that Controller Tom Tvardzik and staff were finalizing the Comprehensive
Annual Financial Report (CAFR) document. The CAFR will be issued by May 31, the
City's deadline to submit the document to the Government Finance Officers Association
for its annual CAFR award program.
b. Depository bank contract - Austin informed the Committee that the bank depository RFP
process had not progressed since the Committee's last meeting but would be underway
soon.
New business.
There was no new business.
Set next Committee meeting date.
The next meeting will be in August.
Adjourn.
The meeting adjourned at 8:20 a.m.
Submitted by Kent Austin, Director of Finance
Bob Olmsted, Chair
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UNIVERSITY PARK, TEXAS, ADOPTING THE INVESTMENT POLICY
OF THE CITY OF UNIVERSITY PARK HERETOFORE ADOPTED BY
RESOLUTION NO. 03-11; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Public Funds Investment Act, as amended, requires the City to adopt an
investment policy by rule, order, ordinance or resolution, and to review such policy not less than
annually; and
WHEREAS, the Public Funds Investment Act, as amended, requires the Treasurer, the
Chief Financial Officer, and the Investment Officers of the City to attend investment training; and
WHEREAS, the City of University Park approves of the investment training courses
sponsored by the Texas Municipal League and other independent sources; and
WHEREAS, the Treasurer, the Chief Financial Officer, and the Investment Officers of the
City have attended investment training courses as required by the Public Funds Investment Act;
and
WHEREAS, the attached investment policy complies with the Public Funds Investment
Act, as amended, and authorizes the investment of City funds in safe and prudent investments;
Now, Therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UNIVERSITY
PARK, TEXAS:
SECTION 1. That the City of University Park has complied with the
requirements of the Public Funds Investment Act, and the Investment Policy, as amended,
attached hereto as Exhibit "A" is hereby adopted as the Investment Policy of the City of
University Park, effective June 18, 2004.
SECTION 2. That the following individuals are hereby designated as Investment
Officers for the City of University Park: Kent Austin, Director of Finance; Bob Livingston, City
Manager; and, Thomas Tvardzik, Controller.
SECTION 3. This resolution shall take effect from and after its passage, and it is
accordingly so resolved.
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DULY PASSED AND APPROVED by the City Council of the City of University Park,
Texas, on the 18th day of June, 2004.
APPROVED:
APPROVED AS TO FORM:
JAMES H. HOLMES, iii, MAYOR
ATTEST:
CITY ATTORNEY
NiNA WILSON, CITY SECRETARY
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Investment Policy
Effective June 18, 2004
City of University Park, Texas
City of University Park, Texas - Investment Policy
CONTENTS
Preface ......................................................................................................................... iv
1. PURPOSE
o
o
o
2.
3.
4.
Authorization .................................................................................................... 1
Goal .................................................................................................................. 1
Scope ................................................................................................................ 1
Review and Amendment .................................................................................... 1
INVESTMENT OBJECTIVES
2.
3.
4.
Preservation and Safety of Principal ................................................................... 2
Maintenance of Adequate Liquidity .................................................................... 2
Return on Investments ....................................................................................... 2
Prudence and Ethical Standards ......................................................................... 3
INVESTMENT STRATEGY STATEMENT
2.
3.
4.
Operating Funds ................................................................................................ 4
Bond Debt Service Funds .................................................................................. 4
Bond Reserve Funds .......................................................................................... 4
Capital Projects Funds ....................................................................................... 5
SPECIFIC INVESTMENT POLICIES
Eligible Investments ........................................................................................... 6
2.
3.
4.
5.
6.
7.
8.
9.
Obligations of the United States ................................................................ 6
Obligations of the State of Texas ............................................................... 6
Agencies of the United States and State of Texas ...................................... 6
Obligations of other States, Counties, Cities .............................................. 6
Direct Repurchase Agreements ................................................................. 6
Certificates of Deposit .............................................................................. 6
Share Certificates of state and federal Credit Unions ................................. 7
Money Market Mutual Funds .................................................................... 7
Local Government Investment Pools ......................................................... 7
Ensuring Safety of Principal ................................................................................ 8
1. Protection of Principal .............................................................................. 8
1. Approved Broker/Dealers/Financial Institutions/Depositories .............. 8
2. Master Repurchase Agreement ............................................................ 9
3. Collateralization .................................................................................. 9
City of University Park, Texas - Investment Policy
1. Allowable Collateral ................................................................... 10
1. Certificates of Deposit ........................................................ 10
2. Repurchase Agreements ...................................................... 10
2. Collateral Levels ........................................................................ 10
1. Certificates of Deposit ........................................................ 10
2. Repurchase Agreements ...................................................... 11
3. Monitoring Collateral Adequacy ................................................. 11
1. Certificates of Deposit ........................................................ 11
2. Repurchase Agreements ...................................................... 11
4. Margin Calls .............................................................................. 11
1. Certificates of Deposit ........................................................ 11
2. Repurchase Agreements ...................................................... 11
5. Collateral Substitution .............................................................. 12
6. Collateral Reductions .............................................................. 12
4. Portfolio Diversification .................................................................... 12
1. Bond Proceeds ........................................................................... 13
5. Limiting Maturity .............................................................................. 13
1. Operating Funds ......................................................................... 13
2. Bond Proceeds, Bond Reserves, Debt Service Funds .................. 13
2. Safekeeping .............................................................................................. 14
1. Safekeeping Agreement ..................................................................... 14
2. Safekeeping of Certificate of Deposit Collateral ................................. 14
3. Safekeeping of Repurchase Agreement Collateral .............................. 14
Ensuring Liquidity ........................................................................................... 14
Achieving Investment Return Objectives .......................................................... 15
1. Securities Swaps ...................................................................................... 15
2. Competitive Bidding ................................................................................. 15
3. Methods of Monitoring Market Price ........................................................ 15
4. Benchmark Rate of Return ....................................................................... 16
Responsibility and Controls .............................................................................. 16
1. Authority to Invest ................................................................................... 16
2. Bonding requirements/Standard of care .................................................... 16
3. Establishment of Internal Controls ............................................................ 17
4. Standard of Ethics .................................................................................... 17
5. Training and Education ............................................................................. 17
6. Investment Committee .............................................................................. 18
Reporting ........................................................................................................ 18
Compliance Audit ............................................................................................ 19
Certification ..................................................................................................... 19
5. ADOPTING CLAUSE ............................................................................................. 20
City of University Park, Texas - Investment Policy
APPENDICES
ao
INVESTMENT LEGISLATION ................................................................. 21
MASTER REPURCHASE AGREEMENT ................................................
BROKER/DEALER CERTIFICATION ..................................................... 56
ATTACHMENTS
BROKER/DEALER QUESTIONNAIRE .................................................... 5 $
iii
City of University Park, Texas - Investment Policy
PREFACE
The purpose of this document is to establish specific investment policy and strategy
guidelines for the City of University Park, Texas ("City") in order to achieve the goals of
safety, liquidity and yield for all investment activity. The City shall review its investment
strategies and policy not less than annually. This policy serves to satisfy the statutory
requirement, specifically the Public Funds Investment Act, Chapter 2256 of the Texas
Government Code (the "Act"), to define, adopt and review a formal investment strategy
and policy.
It is the policy of the City that all available funds shall be invested in conformance with
these legal and administrative guidelines.
Effective cash management is recognized as essential to good fiscal management. An
aggressive cash management and investment policy will be pursued to take advantage of
investment interest as viable and material revenue to 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 federal law.
Investments shall be made with the primary considerations of:
· Preservation of capital and protection of principal
· Maintenance of sufficient liquidity to meet operating needs
· Security of City funds and investments
· Diversification of investments to avoid unreasonable or foreseeable
risks
· Maximization of return on the portfolio
iv
SECTION 1
PURPOSE
City of University Park, Texas - Investment Policy
1. Purpose
1. Authorization
This Policy is to be authorized by the City Council in accordance with
Section 5 of the Public Funds Investment Act (Chapter 2256, Texas
Government Code), which requires the adoption of a formal written
Investment Policy.
2. Goal
The primary goal of the City of University Park's Investment Policy shall
be to ensure the safety of all funds entrusted to the City; to maintain the
availability of those funds for the payment of all necessary obligations of
the City; and to provide for the investment of all funds, not immediately
required, in interest-bearing securities or pooled investment products. The
safety of the principal invested shall always be the primary concern.
3. Scope
This Investment Policy of the City of University Park shall include all
investment activities of any fund of the City, except for the Firemen's
Relief and Retirement Fund, which is covered by a separate policy. In
addition to this Policy, bond funds, including debt service and reserve
funds, shall be managed by their governing resolution and federal law,
including the Tax Reform Act of 1986 and subsequent legislation. City
funds will be pooled for investment purposes.
4. Review and Amendment
This Policy may be amended from time to time as the City Council may so
desire, or as State Law may require. This Policy, which includes strategies
for each fund or pooled fund group, shall be adopted by resolution, rule, or
ordinance by the City Council and shall be reviewed annually by the City
Council. The fact that the Investment Policy has been reviewed and that
any amendments have been made must be recorded by resolution, rule or
ordinance.
SECTION 2
INVESTMENT OBJECTIVES
City of University Park, Texas - Investment Policy
2. INVESTMENT OBJECTIVES
The City shall manage and invest its cash with four objectives, listed in order of
priority: Preservation and Safety of Principal; Liquidity; Yield; and Prudence. All
investments shall be designed and managed in a manner responsive to the public trust
and consistent with State and Local Law.
The City shall maintain a comprehensive cash management program that includes the
prudent investment of available cash. Cash management is defined as the process of
managing monies in order to increase cash availability and interest earnings on short-
term investment of idle cash.
1. Preservation and Safety of Principal
The primary objective of City investment activity is the preservation of
principal in the overall portfolio. Each investment transaction shall be
conducted in a manner designed to avoid principal losses, whether they are
from securities defaults or erosion of market value. The manner in which
the City ensures safety of principal is presented in Section 4.2, "Ensuring
Safety of Principal."
2. Maintenance of Adequate Liquidity
The City investment portfolio shall be structured such that the City is able
to meet all obligations in a timely manner. Maintenance of adequate
liquidity is described in Section 4.3, "Ensuring Liquidity."
3. Return on Investments
Consistent with State law, the City shall seek to optimize return on
investments within the constraints of safety and liquidity. Investments
(excluding assets managed under separate investment programs, such as in
arbitrage restrictive programs) shall be made in permitted obligations at
yields equal to or greater than the bond equivalent yield on United States
Treasury obligations of comparable maturity. Other appropriate
performance measures will be established by the Investment Committee.
Specific policies regarding investment rate of return are presented in
Section 4.4, "Achieving Investment Return Objectives."
For bond issues to which Federal yield or arbitrage restrictions apply, the
primary objectives shall be to obtain satisfactory market yields and to
minimize the costs associated with investment of such funds.
City of University Park, Texas - Investment Policy
4. Prudence and Ethical Standards
The standard of prudence used by the City shall be the "prudent person
rule" and shall be applied in the context of managing the overall portfolio
within the applicable legal constraints. The prudent person rule is restated
below:
"Investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudence,
discretion and intelligence would exercise in the management of
their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the
probable income to be derived."
In determining whether the Investment Officer(s) or Investment Advisor
under contract has exercised prudence with respect to an investment
decision, the determination shall be made taking into consideration the
investment of all funds over which the Officer/Advisor had responsibility
rather than a consideration as to the prudence of a single investment, and
whether the investment decision was consistent with the written Investment
Policy of the City.
The Investment Officers, acting in accordance with written procedures and
exercising due diligence, shall not be held personally responsible for a
specific security's credit risk or market price changes, provided that these
deviations are reported immediately.
Specific policies describing the City's prudence and ethical standards are
found in Section 4.5, "Responsibility and Controls."
SECTION 3
INVESTMENT STRATEGY STATEMENT
City of University Park, Texas - Investment Policy
3. INVESTMENT STRATEGY STATEMENT
The City maintains portfolios that utilize four specific investment strategy
considerations designed to address the unique characteristics of the fund groups
represented in the portfolios.
1. The Operating Funds
The investment strategy for operating funds has as its primary objective the
assurance that anticipated cash flows are matched with adequate
investment liquidity. The secondary objective is to create a portfolio
structure which will experience minimal volatility during economic cycles.
This may be accomplished by purchasing quality, short- to medium-term
securities. The dollar weighted average maturity shall be calculated in
accordance with GASB requirements. The weighted average maturity of
operating funds shall not exceed 548 days. Securities may not be purchased
that have a final stated maturity date that exceeds five (5) years.
2. The Bond Debt Service Funds
The investment strategy for bond debt service fund(s) has as its primary
objective the assurance of investment liquidity adequate to cover the debt
service obligation on the required payment date. Securities purchased shall
not have a stated final maturity date that exceeds the next unfunded bond
debt service payment date.
3. Bond Reserve Funds
The investment strategy for bond reserve fund(s) has as its primary
objective the ability to generate a dependable revenue stream to the
appropriate debt service fund from securities with a low degree of
volatility. Securities should be of high quality and, except as may be
required by the Bond Ordinance specific to an individual issue, of short-to-
intermediate-term maturities. The stated final maturity dates of securities
held shall not exceed five (5) years.
City of University Park, Texas - Investment Policy
4. Capital Projects Funds
The investment strategy for capital projects funds portfolios has as its
primary objective the assurance that anticipated cash flows are matched
with adequate investment liquidity. These portfolios should include at least
10% in highly liquid securities to allow for flexibility and unanticipated
project outlays. The stated final maturity dates of securities held should not
exceed the estimated project completion date.
To maximize the effective investment of assets, all funds needed for general
obligations may be pooled into one account for investment purposes. The income
derived from this account will be distributed to the various funds based on their
average balances on a periodic basis. Proceeds of bond issues shall not be pooled
with other assets of the City, but shall be maintained in the fund issuing the bonds
with interest earnings on these invested proceeds recorded directly to that fund.
SECTION 4
SPECIFIC INVESTMENT POLICIES
City of University Park, Texas - Investment Policy
4. SPECIFIC INVESTMENT POLICIES
1. Eligible Investments
Investments described below are those authorized by the Public Funds
Investment Act (Chapter 2256, Texas Government Code), as amended,
which is included and made a part of this Policy as Appendix A. The
following list may not contain all of those securities that are authorized by
state statutes, but only those that the City Council wishes to include in their
portfolios. The purchase of specific issues may at times be further restricted
or prohibited because of current market conditions. City funds governed by
this Policy may be invested in:
1. obligations of the United States or its agencies and instrumentalities;
2. direct obligations of the State of Texas or its agencies;
other obligations, the principal and interest on which are
unconditionally guaranteed or insured by the State of Texas or the
United States or its agencies and instrumentalities.
obligations of states, agencies, counties, cities and other political
subdivisions of any state having been rated as to investment quality by a
nationally recognized investment rating firm and having received a
rating of not less than A or its equivalent.
fully collateralized direct repurchase agreements having a defined
termination date, secured by obligations described by subdivision 1 of
this subsection, pledged to the City, held in the City's name and
deposited at the time the investment is made with the City with a third
party selected and approved by the City, and placed through a primary
government securities dealer, as defined by the Federal Reserve, or a
financial institution doing business in Texas, and having a market value
(including accrued interest) of no less than the principal amount of the
funds disbursed;
6. certificates of deposit issued by state and national banks domiciled in
Texas that are:
1. guaranteed or insured by the Federal Deposit Insurance
Corporation, or its successor; or,
2. secured by obligations that are described by 1 - 4 above, which are
intended to include all direct federal agency or instrumentality
issues that have a market value of not less than the principal amount
City of University Park, Texas - Investment Policy
of the certificates or in any other manner and amount provided by
law for deposits of the City.
7. share certificates issued by state and federal credit unions domiciled in
Texas that are:
guaranteed or insured by the National Credit Union Share
Insurance Fund, or its successor; or,
secured by obligations that are described by 1 - 4 above, which are
intended to include all direct federal agency or instrumentality
issues that have a market value of not less than the principal amount
of the certificates or in any other manner and amount provided by
law for deposits of the City.
SEC-regulated, no-load money market mutual funds with a dollar-
weighted average stated portfolio maturity of 90 days or less and
whose investment objectives include seeking to maintain a stable net
asset value of $1 per share. No more than 15% of the City's average
fund balance may be invested in money market mutual funds, and the
City may not invest funds under its control in an amount that exceeds
10% of the total assets of any individual money market mutual fund.
Local government investment pools organized in accordance with the
Interlocal Cooperation Act (Chapter 791, Texas Government Act) as
amended, whose assets consist exclusively of the obligations that are
allowed as a direct investment for funds subject to the Public Funds
Investment Act (Chapter 2256, Texas Government Code). A public
funds investment pool must be continuously rated no lower than AAA,
AAA-m or at an equivalent rating by at least one nationally recognized
rating service.
Eligible investment pools must be authorized by the City Council, by
rule, order, ordinance, or resolution, as appropriate. The City Council
has approved the Texas Local Government Investment Pool
("TexPool"), administered by the Texas State Comptroller,,,ll,~,~' the
Texas Short Term Asset Reserve ("TexSTAR");; administered by
JPMorgan Chase and First Southwest Asset Management~
ITexasTERM, administered by PFM Asset Management LLC.I
Investments in collateralized mortgage obligations are strictly
prohibited. These securities are also disallowed for collateral positions.
The City will not be required to liquidate investments that were authorized
investments at the time of purchase.
City of University Park, Texas - Investment Policy
2. Ensuring Safety of Principal
Ensuring safety is accomplished through protection of principal and
safekeeping.
1. Protection of Principal
The City shall seek to control the risk of loss due to the failure of a security
issuer or guarantor. Such risk shall be controlled by:
1. investing only in the safest types of securities as defined in the
Policy,
2. qualifying the broker/dealer and financial institution with whom
the City will transact,
3. collateralization as required by law,
4. portfolio diversification, and
5. limiting maturity.
Settlement of all investment transactions, except those transactions
involving investments in mutual funds or local government investment
pools, must be made on a delivery versus payment basis. The purchase of
individual securities shall be executed "delivery versus payment" (DVP)
through the Federal Reserve System delivered to an authorized safekeeping
agent or "Trustee." By so doing, City funds are not released until the City
has received, through the Federal Reserve wire, the securities purchased.
The security shall be held in the name of the City by the Trustee. The
Trustee's records shall assure the notation of the City ownership of or
explicit claim on the securities. The original copy of the safekeeping
receipts shall be delivered to the City within twenty-four (24) hours of the
security's receipt by the Trustee.
1. Approved Broker/Dealers/Financial Institutions and Depositories
Investments shall only be made with those firms and institutions who
have acknowledged receipt and understanding of the City's Investment
Policy. The "qualified representative" of the business as defined in
Chapter 2256 of the Texas Government Code shall execute a written
certification to acknowledge receipt of the City's Investment Policy and
to acknowledge that the organization has implemented reasonable
procedures and controls to preclude imprudent investment activities
arising out of the investment transactions conducted between the entity
and the City. Should the City contract with an external investment
advisor to execute the investment strategy, including the negotiation
and execution of investment transactions, a managing officer of the
investment advisory firm may sign the written certification in lieu of the
City of University Park, Texas - Investment Policy
broker/dealer firms. This certification must be included as part of the
investment advisory contract.
Securities and certificates of deposit shall only be purchased from those
institutions included on the City's list of broker/dealers and financial
institutions as approved by the Investment Committee. All securities
dealers shall provide the City with references from other public entities
that they are currently serving. This list of approved investment
providers must be reviewed at least annually by the City's Investment
Committee and shall be recorded in the Committee's meeting minutes.
The City's Finance Advisory Committee shall comprise the Investment
Committee.
All state and national banks located in the State of Texas, which are
insured by the Federal Deposit Insurance Corporation (FDIC) are to
be considered as eligible depositories. The financial condition of the
bank shall be considered prior to establishing any accounts with that
bank. The Finance Advisory Committee shall review the bids submitted
by depository candidates and make a recommendation to the City
Council for final approval.
2. Master Repurchase Agreement
It is the policy of the City to require each issuer of repurchase
agreements to sign a copy of the City's Master Repurchase Agreement.
An executed copy of this agreement must be on file before the City will
enter into any repurchase agreement with an issuer. (See Appendix B,
"Master Repurchase Agreement".)
3. Collateralization
Consistent with the requirements of State law, the City requires all
bank deposits (including time deposits) to be federally insured or
collateralized with eligible securities. Financial institutions serving as
City Depositories will be required to sign an Agreement with the City
and its safekeeping agent for the collateral, perfecting the City's rights
to the collateral in case of default, bankruptcy or closure.
The City shall not accept, as depository collateral, any security that is
not specifically allowed to be held as a direct investment by the City
portfolio (see 4.1). Repurchase agreements must also be collateralized
in accordance with State law. Each issuer of repurchase agreements is
required to sign a copy of the City's Master Repurchase Agreement.
An executed copy of this agreement must be on file before the City will
enter into any repurchase agreements with an issuer. (See Appendix B,
City of University Park, Texas - Investment Policy
"Master Repurchase Agreement".) The City considers repurchase
agreements to be simultaneous purchases and sales of securities as
outlined in the Master Repurchase Agreement and not as collateralized
loans. However, the underlying securities may be referred to as
"collateral."
Evidence of the pledged collateral shall be maintained by the Finance
Director or a third party financial institution. All collateral shall be
subject to inspection and audit by the Finance Director or the City
independent auditors.
(1) Allowable Collateral
1. Certificates of Deposit
Eligible securities for collateralization of certificates of
deposit are U.S. Treasury obligations and government
agency securities. The eligibility of specific issues may at
times be restricted or prohibited because of current
market conditions.
2. Repurchase Agreements
Collateral underlying repurchase agreements is limited
to U.S. government and agency obligations, which are
eligible for wire transfer (i.e. book entry) to the City's
designated safekeeping agent through the Federal
Reserve System.
(2) Collateral Levels
Collateral is valued at current market plus interest accrued
through the date of valuation.
1. Certificates of Deposit
The market value of collateral pledged for certificates of
deposit must at all times be equal to or greater than
102% of the par value of the certificate of deposit plus
accrued interest, less the amount insured by the FDIC or
its successors. Investment in eligible pooled Certificate
of Deposit programs is authorized under this section.
2. Repurchase Agreements
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City of University Park, Texas - Investment Policy
The market value of collateral required to be pledged
for repurchase agreements shall be a percentage of the
par value of the agreement plus accrued interest and
shall be maintained at the following levels:
Collateral U.S. Treasury U.S. Government
Maturity Securities Agency
1 year or less 102 % 102 %
1 year to 5 years 102 % 103 %
Over 5 years 103 % 104 %
(3) Monitoring Collateral Adequacy
1. Certificates of Deposit
The City requires monthly reports with market values of
pledged securities from all financial institutions with which the
City has certificates of deposit. The City's Investment Officer
will at least weekly monitor the adequacy of collateral.
2. Repurchase Agreements
Weekly monitoring by the City's Investment Officer of all
collateral underlying repurchase agreements is required. More
frequent monitoring may be necessary during periods of market
volatility.
(4) Margin Calls
1. Certificates of Deposit
If the collateral pledged for a certificate of deposit falls below
the 102% of the deposit, plus accrued interest less FDIC
insurance, the institution will be notified by the City and will be
required to pledge additional securities no later than the end of
the next succeeding business day.
2. Repurchase Agreements
If the value of the collateral underlying a repurchase agreement
falls below the margin maintenance levels specified above, the
City will make a margin call unless the repurchase agreement is
City of University Park, Texas - Investment Policy
scheduled to mature within five business days and the amount is
deemed to be immaterial.
(5) Collateral Substitution
Collateralized investments and certificates of deposit often require
substitution of collateral. Any broker or financial institution
requesting substitution must contact the Investment Officer(s) for
approval and settlement. The substituted collateral's value will be
calculated and substitution approved if its value is equal to or
greater than the required value (See 4.2.1.3.2.2). The Investment
Officer or must give immediate notification of the decision to the
bank or the safekeeping agent holding the collateral. Substitution is
allowable for all transactions, but should be limited, if possible, to
minimize potential administrative problems and transfer expense.
The Investment Officer may limit substitution and assess
appropriate fees if substitution becomes excessive or abusive.
Collateral may be substituted only with the oral authorization of the
Investment Officer, followed by written confirmations within 24
hours.
(6) Collateral Reductions
Should the collateral's market value exceed the required amount,
any broker or financial institution may request approval from the
Investment Officer to reduce collateral. Collateral reductions may
be permitted only if the City's records indicate that the collateral's
market value exceeds the required amount. Written confirmations
of the collateral reduction should be received within 24 hours of the
Investment Officer's approval.
4. Portfolio Diversification
Risk of principal loss in the portfolio as a whole shall be minimized by
diversifying investment types according to the following limitations.
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City of University Park, Texas - Investment Policy
As discussed below, these limitations do not apply to bond proceeds.
Investment Type:
% of Portfolio
· U.S. Treasury Notes/Bonds/Bills 100%
· U.S. Agencies 60%
· Local Government Investment Pools 50%
· Repurchase Agreements 30%
· Certificates of Deposit 30%
· Money Market Mutual Funds 15%
It is the policy of the City to diversify its investment portfolio so that
reliance on any one issuer or broker will not place an undue financial
burden on the City. Generally, the City should limit its repurchase
agreement exposure with a single firm to no more than 15% of the
value of the City's overall portfolio. To allow efficient and effective
placement of proceeds from any bond sales, these limits may be
exceeded for a maximum of five business days following the receipt of
bond proceeds.
(1) Bond Proceeds
Proceeds of a single bond issue may be invested in a single security
or investment if the Investment Committee determines that such an
investment is necessary to comply with Federal arbitrage
restrictions or to facilitate arbitrage record keeping and calculation.
5. Limiting Maturity
In order to minimize risk of loss due to interest rate fluctuations,
investment maturities will not exceed the anticipated cash flow
requirements of the funds. Maturity guidelines by funds are as follows:
(1) Operating Funds
The dollar weighted average days to final stated maturity shall be
548 days or less. The Investment Officer will monitor the maturity
level and make changes as appropriate.
(2) Bond Proceeds, Bond Reserves, Debt Service Funds
The investment maturity of bond proceeds (including reserves and
debt service funds) shall be determined considering:
1. the anticipated cash flow requirements of the funds, and;
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City of University Park, Texas - Investment Policy
the "temporary period" as defined by Federal tax law during
which time bond proceeds may be invested at an
unrestricted yield. After the expiration of the temporary
period, bond proceeds subject to yield restriction shall be
invested considering the anticipated cash flow requirements
of the funds.
3. Safekeeping
1. Safekeeping Agreement
The City shall contract with a bank or banks for the safekeeping of
securities either owned by the City as a part of its investment portfolio
or held as collateral to secure certificates of deposits or repurchase
agreements. The Safekeeping Agreement shall clearly define the
procedural steps for gaining access to the collateral should the City
determine that the City funds are in jeopardy. The safekeeping
institution, or Trustee, shall hold all aforementioned securities in an
account at the Federal Reserve Bank that specifies City ownership of
the account. The Safekeeping Agreement shall include the signatures of
authorized representatives of the City, the firm pledging the collateral
and the Trustee.
2. Safekeeping of Certificate of Deposit Collateral
All collateral securing certificates of deposit must be held by a third
party banking institution approved by the City, or collateral may be
held at the Federal Reserve Bank. The City's ownership in collateral
positions must be fully perfected.
3. Safekeeping of Repurchase Agreement Collateral
The securities that serve as collateral for repurchase agreements with
dealers must be delivered to a third-party custodian with which the City
has established a third-party safekeeping agreement. The City's
ownership of all securities that serve as collateral for repurchase
agreements must be fully perfected.
3. Ensuring Liquidity
Liquidity shall be achieved by matching investment maturities with forecasted
cash flow requirements, by investing in securities with active secondary
markets, and by investing in eligible money market mutual funds (MMMF's)
and local government investment pools (LGIP' s).
q4
City of University Park, Texas - Investment Policy
A security may be liquidated to meet unanticipated cash requirements, to re-
deploy cash into other investments expected to outperform current holdings, or
to otherwise adjust the portfolio.
4. Achieving Investment Return Objectives
Investment selection for all funds shall be based on legality, appropriateness,
liquidity, and risk/return considerations. The portfolios may be actively
managed to enhance overall interest income. Active management will take
place within the context of the "Prudent Person Rule." (see Section 2.4).
1. Securities Swaps
The City may take advantage of security swap opportunities to improve
portfolio yield. A swap which improves portfolio yield may be selected
even if the transaction results in an accounting loss.
2. Competitive Bidding
It is the policy of the City to require competitive bidding for all individual
security purchases except for those transactions with money market mutual
funds (MMMFs) and local government investment pools (LGIP's) which
are deemed to be made at prevailing market rates, and for government
securities purchased at issue through a primary dealer at auction price.
Rather than relying solely on yield, investment in MMMFs and LGIP's
shall be based on criteria determined by the Investment Committee,
including adherence to Securities and Exchange Commission (SEC)
guidelines for MMMFs when appropriate.
At least three bidders must be contacted in all transactions involving
individual securities. Competitive bidding for security swaps is also
required. Bids may be solicited in any manner provided by law. For those
situations where it may be impractical or unreasonable to receive three bids
for a transaction due to a rapidly changing market environment or to
secondary market availability, documentation of a competitive market
survey of comparable securities or an explanation of the specific
circumstance must be included with the transaction bid sheet. All bids
received must be documented and filed for auditing purposes.
3. Methods of Monitoring Market Price
The methods/sources to be used to monitor the price of investments that
have been acquired with public funds shall be from sources deemed reliable
by the Investment Officer, including primary or regional broker/dealers,
established financial institutions providing portfolio
management/accounting services, financial publications, such as the l/Vail
q5
City of University Park, Texas - Investment Policy
Street Journal, market information vendors such as Bloomberg or Telerate
and market pricing services.
4. Benchmark Rate of Return
As a general guideline, the City's cash management portfolio shall be
designed with the objective of regularly meeting the average return on
three-month U.S. Treasury Bills, or the average rate of 90-day Certificates
of Deposit. These indices are considered benchmarks for risk-free
investment transactions and therefore comprise a standard for the
portfolio's rate of return. Additional benchmarks may be developed and
recommended by the Investment Committee and used as a comparative
performance measures for the portfolio. Additional benchmarks that may
be considered for targeting by the Investment Committee include the
Constant Maturity Treasury Bill with the maturity that most closely
matches the weighted average maturity of the portfolio or a more
customized index made up of blended Merrill Lynch Treasury/Agency
indices.
The investment program shall seek to augment rates of return above this
threshold, consistent with legal restrictions and prudent investment
principles. In a diversified portfolio, measured losses are inevitable and
must be considered within the context of the overall portfolio.
5. Responsibility and Control
1. Authority to Invest
Authority to manage the City investment program is derived from a
resolution of the City. Those authorized by said resolution are designated
as Investment Officers of the City, and, in conjunction with the Investment
Committee, are responsible for investment decisions and activities. The
City reserves the right to contract with an external investment advisory firm
to manage the investment assets, and the resulting resolution will grant
investment authorization to the contracted firm. The Finance Director shall
establish written procedures for the operation of the investment program
consistent with this Investment Policy.
2. Bonding requirements/Standard of care
Each of the authorized investment officers shall be a bonded employee. All
participants in the investment process shall act responsibly as custodians of
the public trust and shall exercise the judgment and care, under prevailing
circumstances, that a prudent person would exercise in the management of
the person's own affairs.
City of University Park, Texas - Investment Policy
$. Establishment of Internal Controls
The Finance Director is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the entity are
protected from loss, theft or misuse. The internal control structure shall be
designed to provide reasonable assurance that the objectives are met. The
concept of reasonable assurance recognizes that (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of
costs and benefits requires estimates and judgments by management.
4. Standard of Ethics
City staff involved in the investment process shall refrain from personal
business activity that could conflict with proper execution of the investment
program, or which could impair the ability to make impartial investment
decisions.
City staff shall disclose to the City any material interests in financial
institutions that conduct business with the City, and they shall further
disclose positions that could be related to the performance of the City
portfolio. City staff shall subordinate their personal financial transactions to
those of the City, particularly with regard to the timing of purchases and
sales.
An investment officer of the City who has a personal business relationship
with an organization seeking to sell an investment to the City 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 shall file a statement
disclosing that relationship. A statement required under this subsection
must be filed with the Texas Ethics Commission and the governing body of
the City.
$. Training and Education
In accordance with the Public Funds Investment Act (Chapter 2256, Texas
Government Code), the designated Investment Officers, or those personnel
authorized to execute investment transactions, must attend periodic
investment training. State law requires that training relating to investment
responsibilities must be provided by an independent source as approved by
the Investment Committee. Personnel authorized to execute or approve
investment transactions must receive at least 10 hours of investment
training within each two-year period. Newly appointed investment officers
must attain at least 10 hours of instruction relating to the officer's
q7
City of University Park, Texas - Investment Policy
o
responsibility under the Act within 12 months after assuming investment
duties.
6. Investment Committee
An Investment Committee that is comprised of the membership of the
Finance Advisory Committee shall be established to determine
investment guidelines, general strategies, and monitor performance.
The Committee shall meet quarterly to review performance, strategy
and procedures. The Investment Committee shall include in its
deliberation such topics as: performance reports, economic outlook,
portfolio diversification, maturity structure, potential risk to the City
funds, authorized brokers and dealers, and the target rate of return on
the investment portfolio.
Reporting
Investment performance is continually monitored and evaluated by the Finance
Director. The Investment Officer(s) will provide detailed reports, as required
by the Public Funds Investment Act (Chapter 2256, Texas Government Code,
Section 2256.023) for the City on a quarterly basis.
The Finance Director shall submit a quarterly investment report signed by the
investment officers that summarizes current market conditions, economic
developments and anticipated investment conditions. The report shall
summarize investment strategies employed in the most recent quarter, and
describe the portfolio in terms of investment securities, maturities, risk
characteristics and shall explain the total investment return for the quarter.
The report will outline conformance to the restrictions of the Policy in the area
of diversification and term of maturity. The report will also compare the
performance of City's portfolio to appropriate benchmarks as determined by
the Investment Committee. The report shall summarize current market
conditions, economic developments and anticipated investment conditions. The
report shall also summarize investment strategies employed in the most recent
quarter, and describe the portfolio in terms of investment securities, maturities
and risk characteristics.
Within 60 days of the end of the fiscal year, the Finance Director or the
Investment Advisory firm shall present an annual report on the investment
program and investment activity. The report may be presented as a component
of the fourth quarter report to the City.
The quarterly investment report shall include a succinct management summary
that provides a clear picture of the status of the current investment portfolio
and transactions made over the last quarter. This management summary will be
City of University Park, Texas - Investment Policy
prepared in a manner which will allow the City to ascertain whether investment
activities during the reporting period have conformed to the Investment Policy.
The report will include the following:
1. A listing of individual securities held at the end of the reporting period.
Unrealized gains or losses resulting from appreciation or depreciation
by listing the beginning and ending book and market value of securities
for the period.
3. Additions and changes to the market value during the period.
4. Average weighted yield to maturity or total return performance of the
portfolio on entity investments as compared to applicable benchmarks.
5. Listing of investments by maturity date.
6. The percentage of the total portfolio which each type of investment
represents.
7. Statement of compliance of the City investment portfolio with State
Law and the investment strategy and policy approved by the City.
7. Compliance Audit
In conjunction with its annual financial audit, the City shall perform a
compliance audit of management controls on investments and adherence to the
City's established Investment Policies. The results of the audit shall be reported
to the Investment Committee and the governing body of the City.
8. Certification
A copy of this Investment Policy will be provided to the senior management of
any bank, dealer, broker or investment advisor wishing to transact investment
business directly with the City in order that it is apprised of the investment
goals of the City. Before business is transacted with the firm, a certification
(Appendix C) must be signed by a senior member of a firm. Should the City
contract with an external investment advisor to execute the entity's investment
strategy, including the negotiation and execution of investment transactions, a
managing officer of the investment advisory firm may sign the written
certification in lieu of the broker/dealer firms. This certification must be
included as part of the investment advisory contract.
SECTION 5
ADOPTING CLAUSE
City of University Park, Texas - Investment Policy
ADOPTING CLAUSE
This Investment Policy for the City of University Park, Texas is hereby adopted as of
the 18th day of June, 2004.
Mayor
Director of Finance
ATTEST:
City Secretary
48
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UNIVERSITY PARK, TEXAS, ENTERING INTO A
PARTICIPATION AGREEMENT WITH THE TEXASTERM
LOCAL GOVERNMENT INVESTMENT PORTFOLIO; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of University Park, Texas, ("Participant") is a local government of
the State of Texas and is empowered to delegate to a public funds investment Pool the
authority to invest funds and to act as custodian of investments purchased with local
investment funds; and
WHEREAS, it is in the best interest of the Participant to invest local funds in
investments that provide for the preservation and safety of principal, liquidity, and yield
consistent with the Public Funds Investment Act; and
WHEREAS, the TexasTERM Local Government Investment Portfolio, a public funds
investment pool (a "Pool"), was created on behalf of entities whose investment objectives in
order of priority are preservation and safety of principal, liquidity, and yield consistent with the
Public Funds Investment Act.
NOW THEREFORE, be it resolved as follows:
A. That Participant shall enter into a Participation Agreement to establish an
account in its name in the Pool, for the purpose of transmitting local funds for investment in
either the TexasTERM series or the TexasDAILY series within the Pool.
B. That the individuals, whose signatures appear in this Resolution, are Authorized
Representatives of the Participant and are each hereby authorized to transmit funds for
investment in the Pool and are each further authorized to withdraw funds from time to time, to
issue letters of instruction, and to take all other actions deemed necessary or appropriate for
the investment of local funds.
List of the Authorized Representatives of the Participant. These individuals may be
issued P.I.N. numbers.
1. Name: Kent R. Austin Title: Director of Finance
Signature:
2. Name: Tom Tvardzik
Signature:
Title: Controller
3. Name: __Bob Livingston
Signature:
Title: City Manager
List the name of the Authorized Representative provided above that will have primary
responsibility for performing transactions and receiving confirmations and monthly
statements under the Participation Agreement.
TexasTERM Tnformation Statement · 21
Name:
In addition and at the option of the Participant, one additional Authorized Representative can
be designated to perform only inquiry of selected information. This limited representative
cannot make deposits or withdrawals. If the Participant desires to designate a representative
with inquiry rights only, complete the following information.
4. Name: Title:
Signature:
C. That this Resolution and its authorization shall continue in full force and effect until
amended or revoked by the Participant, and until the Pool receives a copy of any such
amendment or revocation.
This Resolution is hereby introduced and adopted by the Participant at its meeting held on the
18th day of June, 2004..
NAME OF PARTICIPANT:
BY:
Signature
Printed Name
Title
ATTEST:
Signature
Printed Name
Title
SEAL:
TexasTERM Tnformation Statement · 21
AGENDA MEMO
(6/18/04 AGENDA)
DATE:
TO:
FROM:
SUBJECT:
June 9, 2004
Honorable Mayor and City Council
Christine Green, Purchasing Agent
Bid #04-09, Annual Contract for Fuels
Bid #04-09 for the purchase of fuels on an annual contract basis was opened on May 27th.
This bid was posted on RFP Depot: 228 vendors received fax or e-mail notice of the bid;
20 vendors viewed the bid; three vendors submitted bids.
The City buys fuel based on a mark-up or mark-down from the daily average wholesale
fuel prices for the Dallas/Ft. Worth area as published by the Oil Price Information Service
(OPIS). Petroleum Traders, Inc. submitted the low bid with an OPIS mark-up of $0.0143
for unleaded, $0.0163 for diesel #2, and $0.0463 for diesel #1. The City will purchase
approximately $179,299.50 in fuel through this contract. Petroleum Traders has been the
City's fuel vendor since April of 1999 and has provided good service.
RECOMMENDATION:
Staff recommends accepting the low bid of Petroleum Traders, Inc. Attached is a bid
tabulation including a price history.
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Documents and Settings\nwils°n'UNIVPARK\L°cal Settings~Temporary Internet Files\OLK3\0409memo (2).doc 9:07 AM 06/1
BID #04-09, ANNUAL FUEL CONTRACT BID TABULATION OPENED MAY 27, 2004, 3:00 P.M.
DESCRIPTION ANN. QTY. UNIT
DFW OPIS
PRICE 5-24-04
1. Mansfield Oil Co. 2. Petroleum Traders Corp. 3. Susser Petroleum
MARK-UP/ I APPROX. MARK-UP/ APPROX. MARK-UP/ I APPROX.
DOWNI TOTAL DOWN TOTAL DOWNI TOTAL
1. Unleaded 65,000 GAL
$1.4140 0.0197 $ 93,190.50 $0.0143 $ 92,839.50 $0.0380 $ 94,380.00
2. Diesel #2 75,000 GAL
3. Diesel #1 Infrequent use
$1.1365 0.0224 $ 86,917.50 $0.0163 $ 86,460.00 $0.0380 $ 88,087.50
$1.2275 0.0313 $0.0463 *** NO BID ***
APPROX. ANNUALTOTAL
$ 180,108.00 $ 182,467.50
1. Mansfield Oil Co. 2. Petroleum Traders 3. Susser Petroleum
NO, but $35 if above ground tanks NO, but Texas delivery fee NO
NO NO NO
NO NO NO
NO NO NO
Unbranded Motiva, Exxon, Citgo, Conoco Phillips Unbranded
OTHER FEES (not taxes):
1. Split load charge?
2. Tank Wagon Delivery charge?
3. Charge for deliveries <8000 gals?
4. Pump off charge?
5. Brand of fuel
* NOTE: The City of University Park usually orders full transport loads defivered to one location.
These extra fees usually will not apply.
Price History
2001-2004 Fuel Vendor was Petroleum Traders
$0.0003 markup on Unleaded
$0.0048 markup on Diesel #2
$0.0350 markup on Diesel #1
1999 Fuel Vendor was Petroleum Traders
$0.0019 markup on Unleaded
$0.0064 markup on Diesel #2
$0.0195 markup on Diesel #1
2000 Fuel Vendor was Petroleum Traders
$0.0009 markup on Unleaded
$0.0054 markup on Diesel #2
$0.0185 markup on Diesel #1
1998 Fuel Vendor was TAC (Truman Arnold)
$0.0066 markup on Unleaded
$0.0071 markup on Diesel #2
$0.0141 markup on Diesel #1
MINUTES
#2414
CITY COUNCIL MEETING
CITY OF UNIVERSITY PARK, TEXAS
CITY HALL COUNCIL CHAMBERS
TUESDAY, JUNE 1, 2004, 5:00 P.M.
Mayor Holmes convened the council into a pre-meeting at 4:02 p.m. to discuss the
upcoming City Council Agenda. No action was voted on or taken.
Mayor Holmes then opened the regular meeting of the City Council. Present were Mayor
Pro Tempore Jim Roberts, Councilmembers Harry Shawver, Kelly Walker and Sydney
Carter. Also in attendance were City Attorney Rob Dillard, City Manager Bob
Livingston, Public Works Director Bud Smallwood, Finance Director Kent Austin, Police
Chief Gary Adams, Fire Chief David Ledbetter, Human Resources Director Luanne
Hanford and Deputy City Secretary Robert Corder. City Secretary Nina Wilson was
absent and excused.
AWARDS & RECOGNITION:
COMMENDATION: Police Chief Gary Adams presented a commendation on behalf of
the City Of University Park to Ms. Kim Duncan. Ms. Duncan observed two individuals
running from a garage in the 3000 block of Hanover. Ms. Duncan quickly called the
University Park Police and the individuals were stopped. Officers discovered that the
vehicle the suspects were driving was stolen from Dallas, and contained stolen property
from the residence.
RECOGNITION: Finance Director Kent Austin recognized the members of the Texas
Higher Education Authority. Members present included Eiband Wilshusen, Wayne
Tenney, O. Paul Corley, and Trevor Rees-Jones. Don Houseman and Richard
Quisenberry were not present. Mr. Austin presented each member in attendance with
certificates of appreciation and noted the accomplishments of the authority.
DEPARTMENT PINS: City Manager Bob Livingston presented department service pins
to Robert Rogers for 15 years of service with the City and to Jacob Speer for 5 years of
service with the City.
BOY SCOUTS: Mayor Holmes asked any Boy Scouts in attendance to approach the
podium and give their name, troop number, and merit badge working towards while
attending the meeting. Mr. Stephen Turney from Troop 125 was working on his
Communications badge; Mr. Wen McCaory from Troop 72 was working on his
Communications badge; and Mr. Michael Demdicki from Troop 125 was working on his
Citizenship in the Community badge.
Councilmember Shawver moved acceptance of the Consent Agenda. Councilmember
Carter seconded, and the vote was unanimous to approve the following:
CONSENT AGENDA
CONFIRMATION OF JIM ROBERTS AS MAYOR PRO TEMPORE: Approval of this
item would confirm Jim Roberts as the Mayor Pro Tempore through 2006.
CONSIDER RESOLUTION: Approval of the resolution will authorize participation in
the Corporate Travel Charge Card Program of BankOne, and authorize the Purchasing
Agent to execute the agreement.
RESOLUTION NO. 04-05
A RESOLUTION OF THE CITY COUNCIL OF UNIVERSITY PARK, TEXAS,
AUTHORIZING PARTICIPATION IN THE CORPORATE TRAVEL CHARGE CARD
PROGRAM OF BANK ONE; AUTHORIZING EXECUTION OF AN AGREEMENT
AND OTHER NECESSARY PAPERS BY THE PURCHASING AGENT; AND
PROVIDING AN EFFECTIVE DATE.
CONSIDER APPROVAL OF CITY COUNCIL MEETING MINUTES: For May 19 &
24, 2004.
MAIN AGENDA
CONSIDER ORDINANCE ABANDONING DYER RIGHT-OF-WAY FROM
AIRL1NE TO DULBIN TO SOUTHERN METHODIST UNIVERSITY: Director of
Public Works Bud Smallwood introduced the proposed ROW abandonment and indicated
that this item was a cleanup issue from a previously authorized rezoning, street
realignment, and screening wall. The City will receive fair market value for the proposed
ROW abandonment. Mayor Pro Tempore Jim Roberts moved for approval of the
proposed ROW abandonment. Councilmember Sydney Carter seconded, and the vote
was unanimous to approve the ROW abandonment.
ORDINANCE NO 04/17
AN ORDINANCE OF THE CITY OF UNIVERSITY PARK, TEXAS, ABANDONING
ALLEY RIGHT-OF-WAY AS MORE PARTICULARLY DESCRIBED IN EXHIBIT
"A", AND ABANDONING STREET RIGHTS-OF-WAY AS MORE PARTICULARY
DESCRIBED IN EXHIBIT "B" AND "C", TO THE ABUTTING OWNER,
SOUTHERN METHODIST UNIVERSITY, IN CONSIDERATION OF THE
PAYMENT OF THE MARKET VALUE AND CONVEYANCE TO THE CITY OF AN
ALLEY EASEMENT FOR THE PROPERTY MORE PARTICULARLY DESCRIBED
IN EXHIBIT "D"; PROVIDING FOR THE FURNISHING OF A CERTIFIED COPY
OF THIS DOCUMENT FOR RECORDING IN THE REAL PROPERTY RECORDS
OF DALLAS COUNTY, TEXAS AS A DEED; AND PROVIDING AN EFFECTIVE
DATE.
CONSIDER REQUEST FROM CINDY WILLIAMS OF THE UNIVERSITY PARK
ELEMENTARY SCHOOL PTA FOR FEE WAIVER FOR USE OF CURTIS PARK:
Ms. Cindy Williams has requested the City consider waiving a fee waiver for use of
Curtis Park. Previous use of the park by this organization required a $300 fee plus a $250
security deposit. City Manager Bob Livingston, citing previous recommendations to
deny fee waivers for use of park, indicated he was recommending against the proposed
fee waiver. However, he did indicate that he would like the new Parks Director to work
with the Parks Advisory Committee to develop a fee analysis and policy regarding fee
waiver requests. Councilmember Shawver moved to deny the fee waiver by Ms.
Williams. Mayor Pro Tempore seconded, and the vote was unanimous to deny the fee
waiver request.
CONSIDER ORDINANCE ABANDONING RIGHT-OF-WAY AT THE CORNER OF
CARUTH AND TURTLE CREEK BLVD: Director of Public Works Bud Smallwood
introduced the item that would abandon a triangular ROW at the northwest corner of
Caruth and Turtle Creek. The City will receive fair market value for the proposed ROW
abandonment. Councilmember Shawver moved for approval of the proposed ROW
abandonment. Councilmember Walker seconded, and the vote was unanimous to
approve the ROW abandonment.
ORDINANCE NO 04/18
AN ORDINANCE OF THE CITY OF UNIVERSITY PARK, TEXAS, ABANDONING
A PORTION OF THE STREET RIGHT-OF-WAY OF CARUTH BOULEVARD AND
TURTLE CREEK BOULEVARD, AS MORE PARTICULARLY DESCRIBED AND
DEPICTED IN EXHIBIT "A", TO THE ABUTTING OWNER IN CONSIDERATION
OF THE PAYMENT OF THE APPRAISED MARKET VALUE OF $45,850, BY THE
OWNER TO THE CITY; PROVIDING FOR THE FURNISHING OF A CERTIFIED
COPY OF THIS ORDINANCE FOR RECORDING IN THE REAL PROPERTY
RECORDS OF DALLAS COUNTY, TEXAS, AS A QUIT CLAIM DEED; AND
PROVIDING AN EFFECTIVE DATE.
RETIREMENT PLAQUE: Mayor Pro Tempore Jim Roberts presented Agustin B.
Carbajal with a plaque for his 18 years of service with the City. Mayor Pro Tempore
Roberts also presented Mr. Carbajal with two checks and thanked him for his years of
service with the Parks Department.
CONDISER REQUEST TO REZONE PD-2-R - 4520 LOVERS LANE: In November,
2003 the Park Cities Animal Hospital received approval from the Planning and Zoning
Commission for a sixteen foot addition to the rear of their space in Planned Development
District 2-Retail. After further review of their space needs, the applicant made a request
at the April 19, 2004 Planning and Zoning meeting for an additional two feet to the
building, for a total addition of 537 square feet. The Planning and Zoning Commission
approved the request. Mayor Pro Tempore Jim Roberts moved for approval of the
request to amend PD-2-4. Councilmember Walker seconded the motion and the vote was
unanimous to approve the amended PD-2-R. At that time the applicant questioned
whether that included the additional two feet requested. Mayor Pro Tempore Roberts
amended his motion to specify the additional two feet. Councilmember Walker seconded
the amended motion, and the vote was unanimous to approve the amended PD-2-R for an
additional two feet, for a total of 18 feet.
ORDINANCE NO 04/19
AN ORDINANCE OF THE CITY OF UNIVERSITY PARK, TEXAS, AMENDING
THE COMPREHENSIVE ZONING ORDINANCE AND MAP OF THE CITY OF
UNIVERSITY PARK, AS HERETOFORE AMENDED, SO AS TO AMEND
PLANNED DEVELOPMENT DISTRICT NO. 2 (PD-2-R) FOR THE PROPERTY
DESCRIBED AS LOT 2 OF BLOCK C, IDLEWILD NO. 2, AN ADDITION TO THE
CITY OF UNIVERSITY PARK, DALLAS COUNTY, TEXAS, AND MORE
COMMONLY KNOWN AS 4520 LOVERS LANE, UNIVERSITY PARK, TEXAS;
APPROVING A SITE PLAN; PROVIDING SPECIAL CONDITIONS; PROVIDING
FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY OF FiNE NOT TO
EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH
OFFENSE; AND PROVIDING AN EFFECTIVE DATE.
CONSIDER REQUEST TO REZONE 5801 HILLCREST FROM MF-2-MF-3: A
rezoning request at 5801 Hillcrest by Highland Park United Methodist Church has been
reviewed and approved by the Planning & Zoning Commission. The proposed change
would rezone the property from Multi Family District 2 to Multi Family District 3. The
MF-3 zoning classification would allow a total of thirteen multi-family units on the
property. Councilmember Walker moved to approve the zoning request from MF-2 to
MF-3. Councilmember Shawver seconded the motion, and the vote was unanimous to
approve the rezoning request.
ORDINANCE NO. 04/20
AN ORDINANCE OF THE CITY OF UNIVERSITY PARK, TEXAS, AMENDING
THE COMPREHENSIVE ZONING ORDINANCE AND MAP OF THE CITY OF
UNIVERSITY PARK, AS HERETOFORE AMENDED, BY CHANGING THE
ZONING ON THE PROPERTY AT 5801 HILLCREST FROM MULTI FAMILY
DISTRICT 2 (MF-2) TO MULTI FAMILY DISTRICT 3 (MF-3), SAID PROPERTY
BEING MORE PARTICULARLY DESCRIBED AS LOTS 9 AND 10, BLOCK 6,
WALKER'S ADDITION, AN ADDITION TO THE CITY OF UNIVERSITY PARK,
DALLAS COUNTY, TEXAS; PROVIDING FOR THE REPEAL OF ALL
ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING FOR A PENALTY OF FiNE NOT TO EXCEED THE SUM OF TWO
THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE; AND PROVIDING AN
EFFECTIVE DATE.
CONSIDER ORDINANCE AMENDING THE FY2004 BUDGET: Staff is requesting
Council approval to transfer monies to the Capital Projects Fund for the City Hall
Renovation project in the amount of $3,450,000. The transfer would come from two
sources: 1) unreserved fun balance in the General Fund, $2,200,000; and 2) unreserved
fund balance in the Utility Fund, $1,250,000. Councilmember Shawver moved to
approve the budget transfer. Councilmember Walker seconded the motion, and the vote
was unanimous to approve the transfer.
ORDINANCE NO. 04/21
AN ORDINANCE OF THE CITY OF UNIVERSITY PARK, TEXAS, AMENDING
THE 2003-2004 FISCAL YEAR BUDGET, ORDINANCE NO. 03/22, TO TRANSFER
FUNDS FROM THE FISCAL YEAR 2004 GENERAL FUND AND UTILITY FUND
INTO THE CAPITAL PROJECTS FUND; AND PROVIDING AN EFFECTIVE DATE.
DISCUSSION REGARDING PROPOSAL FOR CABLE TV FRANCHISE RENEWAL
ADVISORY GROUP: The City's cable TV franchise agreement with Charter
Communications expires in 2005. During previous franchise negotiations a staff member
and Council representative have held discussions with Charter Communications. Staff is
proposing to form a temporary advisory committee formed of citizens from University
Park and Highland Park to negotiate the agreement on behalf of the communities. The
committee would be a five to seven member committee with approximately 2-3 members
from Highland Park and the remaining members from University Park.
CONSIDER COMMITTEE APPOINTMENTS: Mayor Holmes has been working with
staff members to consider new appointments to the City's various statutory and advisory
committees. A list was provided to Council of the proposed committee members. Mayor
Pro-Tempore Jim Roberts moved to approve the committee appointments.
Councilmember Carter seconded the motion, and the vote was unanimous to approve the
appointments. Mayor Holmes then announced the formation of a City Hall Renovation
Oversight Committee. The temporary committee would be comprised of former mayor
Harold Peek, Olin Lane, John Walsh, Bob Livingston, and Blackie Holmes.
DISCUSS DATE FOR JUNE WORK SESSION AND MEETING DATES FOR THE
REMAINDER OF 2004: Brief discussion regarding a need to move the June 16th work
session to June 18th. Members of Council agreed that this new date would work, and an
upcoming item would be added to discuss the remaining meeting dates.
CONSIDER CHANGE ORDER NO. 1 WITH SYB CONSTRUCTION FOR UTILITY
IMPROVEMENTS ALONG LOVERS LANE: Council awarded SYB Construction a
contract in the amount of $1,489,258 for utility improvements along Lovers Lane in
December, 2003. Staff discovered that the Lovers Lane reconstruction project could be
expedited if the remaining utility work along Lovers Lane from Thackeray to Hillcrest
could be added to SYB's contract. The proposed change order would be in the amount of
$148,033.50. Councilmember Shawver moved to approve change order No. 1 with SYB
construction. Councilmember Walker seconded the motion, and the vote was unanimous
to approve change order No. 1 with SYB Construction.
PASSED AND APPROVED this 18th day of June 2004.
ATTEST:
James H. Holmes III, Mayor
Nina Wilson, City Secretary
AGENDA MEMO
(06/18/04AGENDA)
DATE: June 14, 2004
TO: Honorable Mayor & Councilmembers
FROM: Bob Livingston
City Manager
SUBJECT: INSURANCE RENEWAL FOR PROPERTY, CASUALTY,
LIABILITY & WORKERS COMPENSATION
The committee is in the process of reviewing renewal options and will be meeting on
Tuesday morning to formulate recommendations for the city council. Frank Swingle,
chairman of the committee, will be in attendance at the city council meeting on Friday
morning.
RECOMMENDATION:
ATTACHMENTS:
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
U:\Docs\City Council~Agenda Memo for Insurance Committee.doc 10:05 AM 06/1,
AGENDA MEMO
(06-18-04 AGENDA)
DATE:
TO:
FROM:
SUBJECT:
June 11, 2004
Bob Livingston
City Manager
Gene R. Smallwood, P.E.
Director of Public Works
Information and discussion of schedule for construction of water and
sanitary sewer improvements in the area east of Caruth Park.
Background. Plans and specifications are complete, and staff is prepared to solicit bids for
the reconstruction of water, sanitary sewer, storm sewer, and pavement improvements in
the following locations:
· Alley in the 32-3300 block of Centenary - Marquette;
· Alley in the 32-3400 block of Colgate - Caruth;
· 32-3300 block of Caruth;
· Alley in the 32-3300 block of Greenbrier-Southwestern;
· Hillcrest, alley north of Southwestern to Caruth, and the parking area at east
end of Caruth Park;
Unless otherwise directed, staff will advertise for bids, present Council with a
recommendation for award in August, and start construction in September. We expect the
construction to be completed by mid-to-late 2005. Coincidently, that completion estimated
date is very similar to that of the Lovers Lane project.
Information / Discussion. Staff would entertain any questions or comments from Council.
AGENDA MEMO
(06/18/04 AGENDA)
DATE:
TO:
FROM:
June 8, 2004
Honorable Mayor and Members of the City Council
Jim Criswell, Director of Information Services
SUBJECT: Prospects for a "Paperless" Agenda
As we move into the 21st century, the City Manager and Staff are constantly
considering additional ways to use automation to generate a more efficient
operation. With the implementation of the LaserFiche Document Management
software in the Executive, Engineering, Building, Fire, and Sanitation Departments,
great strides have been made in moving toward a more paperless environment.
To continue that trend, City Staff is proposing a discussion to help give direction to
automating the delivery of agenda packets, Friday reports, email, and other crucial
information to the City Council.
The advantages of a move toward a paperless agenda process are many. The City
Secretary and Administrative Assistant spend several hours twice each month
preparing the agenda books that then must be delivered to the homes of the Mayor
and Council. This process could be replaced by electronically transmitting the
documents instead. Additionally, the advantage of the Mayor and each Council
member having access to a City email account would facilitate constant
communication among people who are at times difficult to reach, and information
delivery in a consistent manner.
Today, Staff is seeking information related to the Council's comfort zone with
personal computing, current capabilities at home or at the office, and a general
discussion as to the direction Staff should take as we move toward a paperless
world.
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Documents and Settings\nwils°n'UNIVPARK\L°cal Settings~Temporary Internet Files\OLK3~Agenda Memo - Council
Prospects for Paperless Agenda.doc 9:50 AM 06/11/04
City of University Park
City Council Computer Use Survey
June 8, 2004
This survey is intended to help identify the Mayor and Council's comfort level with the
use of personal computers and discover the current computing capabilities available at
home or work.
1. Do you currently use a personal computer at?
Work Home
(If yes to either, please continue.)
2. Which of the following applications do you use?
Work Home
Internet Explorer
Email
Adobe Acrobat Reader
Microsoft Word
Microsoft Excel
Microsoft Powerpoint
3. Which Microsoft Windows version do you have installed?
Work Home
Windows 98
Windows 2000
Windows XP
Other
4. If you know the computer brand and specifications, indicate below.
Work Home
Brand
Processor
Memory
Disk Capacity
Approx. Purchase Date
Brand
Processor
Memory
Disk Capacity
Approx. Purchase Date
If you know what type of connection you use to access the Internet/Email,
indicate below.
Dial-up(regular telephone line)
High Speed Digital Subscriber Line (DSL)
High Speed Cable Modem
T-1 Line
Work Home
City of University Park
City Council Computer Use Survey
June 8, 2004
General:
6. How would you assess your personal computer skills?
Beginner
Intermediate
Power User
7. Would you prefer to access City-related email and documents from your work or
home computer, or by paper?
Work
Home
Paper
2
AGENDA MEMO
(06/18/04 AGENDA)
DATE; June 10, 2004
TO: Honorable Mayor and City Council
City Manager
FROM: Kent R. Austin, Director of Finance
SUBJECT: TMRS/FRRF conversion study summary
ITEM:
Included on the June 18 work session agenda is a discussion item regarding the ongoing study of a
merger between the City Fire Fighters' Relief and Retirement Fund (FRRF or "the Fund") and the
Texas Municipal Retirement System (TMRS). Below is a summary of key points in the
TMRS/FRRF conversion effort:
· The 1/1/03 FRRF actuarial study concluded that the Fund would not be actuarially sound
without an additional 2.4% in contributions. Currently the firefighters contribute 10% of
their pay, and the City contributes 14.01%. In 2002 the Fund's investments returned
negative 10.5%, the third consecutive year of negative returns. On a cash basis, Fund
payouts have exceeded Fund inputs for the past three years.
· In December 2002 the FRRF Board began discussing the possibility of merger with
TMRS.
· The FRRF Board and CUP City Council requested that TMRS conduct a merger study on
April 28, 2003. The City agreed to pay the $10,000 study cost upon completion.
· In September 2003 TMRS informed the Board that it would only consider accepting the
active FRRF participants, not the non-actives and retirees. The reason is that FRRF does
not have sufficient funds to cover the liability associated with the retirees if merged with
TMRS.
· An asset transfer of $1.445 million to TMRS would be required to account for active
employee contributions previously made. As of 05/28/04, the FRRF portfolio balance was
$6.6 million. The remaining balance ($5.155 million) would be used to pay future benefits
to existing retirees.
· In addition to the asset transfer, the City'sTMRS contribution rate would need to rise from
14.01% to 14.46%. This change would pay for the increase in unfunded liability created
by the addition of the active Fire Department personnel.
· The TMRS Board will not consider a merger without a 100% unanimous vote of approval
by the existing FRRF membership.
· To realize an equal or improved TMRS benefit comparable to 20 years in FRRF, FRRF
actives would need 25 years of service credits in TMRS. Currently FRRF members are
eligible for full retirement benefits after 20 years of service and 50 years of age.
· The question of how much the non-actives and retirees will cost is key. Currently the Fund
pays out $58,172 in monthly retiree benefits. A brief study by actuary Chuck Dean
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Documents and Settings\nwils°n'UNIVPARK\L°cal Settings~Temporary Internet Files\OLK3~AGENDA MEMO FRRF
061804.doc 9:12 AM 06/11/04
entitled ;;Analyses of Retired Lives Liability" (4/20/04) identified the present value of
retiree benefits at $11,094,970. This would be the cost today of purchasing annuities for
all non-actives and retirees.
· Instead of buying annuities, a likely less expensive funding method would be pay-as-you-
go, using the remaining FRRF assets as a ;;wasting trust" until they are consumed. At
over $600,000/year in benefit payouts, the Fund's assets would last about eight years.
· As a means of reaching 100% favorable vote and ensuring that all merged members do not
receive a lesser benefit, staff asked TMRS if some active could be retained with FRRF.
TMRS responded that all actives would have to be merged, all or nothing.
· The Fund's portfolio earned a 19.25% return for 2003 but has earned less than 1% year to
date for 2004.
UPDATE:
Simply put, the challenge is two-fold: first, how to achieve unanimous approval from a large and
independent-minded group of employees, and second, how to finance the $6 million gap in funding
retiree benefits should a merger occur. FRRF Board of Trustees and City management have
discussed, at length, advantages and disadvantages of different responses to the challenge. At this
time City management would like to discuss alternatives, informally, with the City Council. The
alternatives range from doing nothing (and awaiting the results of the next actuarial valuation,
scheduled for 12/31/04) to funding the $6 million needed to cover all future benefits of current
retirees.
3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644
C:\Documents and Settings\nwils°n'UNIVPARK\L°cal Settings\Temporary Internet Files\OLK3~AGENDA MEMO FRRF
061804.doc 9:12 AM 06/11/04