H2. Resolution 5754 - MT Board of Investments - STIP Resolution' City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Doug Russell, City Manager
FROM: Rick Wills, Finance Director f--AA1
SUBJECT: Resolution No. 5754 — Designating an Authorized Representative to
transact Short Term Investment Pool (STIP) on behalf of the City of
Kalispell, designating a Bank Name and Account Number to be used
specifically for STIP transactions, and designating the earnings
distribution method of the STIP account.
MEETING DATE: March 7, 2016 — Regular Council Meeting
BACKGROUND: The City of Kalispell utilizes the Short Term Investment Pool [STIP]
that is managed by the Montana Board of Investments for the reason that the terms of the STIP
have been generally favorable for the City. The Board of Investments recently adopted new
requirements including the necessity for the governing bodies to pass a resolution designating an
Authorized Representative to transact STIP on its behalf and who may appoint Authorized
Delegates, to designate a Bank Name and Account Number to be used specifically for STIP
transactions, and to designate whether STIP earnings should be reinvested or distributed. In the
past these determinations were made at the City Manager/Finance Director level without the
necessity of a resolution from the governing body. As with other local governments, the City has
traditionally designated the Finance Director as its Authorized Representative.
Resolution No. 5754 is in the form as recommended by the Board of Investments and is offered to
Council to formally designate the Finance Director as the Authorized Representative, allow him to
appoint and delete Authorized Delegates, and change either the Bank or the Account. Resolution
No. 5754 also designates and authorizes Glacier Bank, identified in Exhibit B attached,
designating the Account Number and ABA Number to send or transfer funds to the State
Treasurer for purchase of STIP shares and to deposit withdraw proceeds resulting from sales of
STIP shares in the Bank's Account identified in Exhibit B.
RECOMMENDATION: It is recommended that the Council pass Resolution No. 5754.
ALTERNATIVES: Upon consideration of the resolution, the Council may offer alternatives as
it deems appropriate.
11.1 DT% MIJB&M, I
RESOLUTION AUTHORIZING PARTICIPATION IN THE BOARD OF INVESTMENTS OF THE
STATE OF MONTANA SHORT TERM INVESTMENT POOL (STIP) AND AUTHORIZING THE
EXECUTION AND DELIVERY OF DOCUMENTS RELATED THERETO
BE IT RESOLVED BY THE CITY COUNCIL (the Governing Body) OF THE CITY OF KALISPELL,
MONTANA (the Participant) AS FOLLOWS:
ARTICLE I
DEFINITIONS
Section 1.01 The following terms will have the meanings indicated below for all purposes
of this Resolution unless the context clearly requires otherwise:
Section 1.02 Account shall mean a specific Participant Bank account assigned by the Bank
to be used in conducting transactions through the STIP Program.
Section 1.03 Agreement shall mean the agreements of the Participant as contained within
this Resolution.
Section 1.04 Authorized Representative shall mean the officer or official of the Participant
designated and duly authorized by the Governing Body as set forth below to enable the Participant's participation
in the STIP Program.
Section 1.05 Authorized Delegate shall mean any lawful officer, official or employee of
the Participant who has been delegated authority by the Authorized Representative as provided in this Resolution
to initiate transactions using the Board's STIP Program.
Section 1.06 Bank shall mean a financial institution designated and authorized as provided
in this Resolution to send and receive money on behalf of the Participant for purposes of participation in the
STIP Program.
Section 1.07 Board shall mean the Board of Investments of the State of Montana, a public
body corporate organized and existing under the laws of the State and its successors and assigns.
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Section 1.08 Exhibit A (STIP Participation Information Sheet) shall mean the document
attached to and incorporated into this Resolution as provided in Article IV, Section 4.01. that provides
information necessary for the Participant to participate in STIR
Section 1.09 Exhibit B (Electronic Funds Transfer Authorization Form) shall mean the
document attached to and incorporated into this Resolution as provided in Article IV, Section 4.01 that provides
instructions for the Board and its agents to administer and manage the Participant's participation, transactions
and shares in the STIP Program.
Section 1.10 Governing Body shall mean the governing body of the above -named political
subdivision (Participant) authorized by Montana state law to participate in the STIP Program as further specified
in this Resolution.
Section 1.11 Participant shall mean the political subdivision requesting participation in the
Board's Short Term Investment Pool.
Section 1. 12 Short Term Investment Pool, STIP, or Program shall mean the Board's Short
Term Investment Pool Program as authorized by law and as more fully defined and described in the Board's
policies and procedures, as may be amended from time to time.
ARTICLE 11
SHORT TERM INVESTMENT POOL PARTICIPATION AGREEMENT
Section 2.01 Participation Agreement. By approving and adopting this Resolution and
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Exhibits A and B, the Governing Body requests and agrees to participation of Participant in the STIP Program,
and agrees that Participant will comply with and be bound by all laws, policies, procedures and participation
requirements applicable to the STIP Program, as may be amended from time to time.
Section 2.02 STIP Program Description. The STIP Program is an investment program
administered under the direction of the Montana Board of Investments as authorized by the Unified Investment
Program. As more fully set forth in Board policies and procedures, STIP is available to state and local
governments to serve their short term cash flow and deposit needs and its objectives are to preserve capital and
to maintain high liquidity. The Program has the following attributes, as more fully set forth in applicable Board
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policies, procedures and participation requirements, which are subject to change upon the sole determination of
the Board:
I ) STIP transactions are fixed at $1 per share;
2) STIP interest on pool assets accrues daily;
3) STIP earnings distribution method: Interest is distributed at the beginning of the month and can
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be distributed as cash to the designated Bank or the earnings can be reinvested into STIP;
4) Buying or selling shares in STIP requires one (1) business days' notice; transactions for which
notice is received after 2:00 p.m. will be processed two (2) business days after receipt of the
original notice;
5) Access to STfl? is only through an electronic, web -based portal; no cash, checks or notifications
by fax, phone or email will be accepted;
6) STIP's web portal provides real-time information on each account including: investment
balances, buys, sells, pending transactions, and transaction notes, as determined by the
authorized user; and
7) The Board accounts and reports on its financial statement STIP investment on a Net Asset
Value (NAV) basis. A NAV per share of a STIP unit will be shown on the Board's website for
each month -end period http://investmentmt.coifl/Montli]vNetAssetVaILIC.
Section 2.03 Review of Policies, Procedures and Participation Requirements. Participant
acknowledges and represents that it has reviewed to its satisfaction all Board policies, procedures and
participation requirements applicable to the STIP Program. http://investmentmt.com/STIP
Section 2.04 Authorized Representative: The Governing Body designates Rick Wills who
holds the position of Finance Director as the Participant's Authorized Representative to make transactions
between STIP and the Bank.
The Governing Body: (check one) DOES [ X ] DOES NOT [ ] allow the Authorized Representative to appoint
and delete additional Authorized Delegate(s) on behalf of the Participant. If "DOES" is checked, any addition or
deletion of an Authorized Delegate requires notice via the submission of a completed Exhibit A (STIP
Participation Information Sheet) to the Board by the Authorized Representative before transactions will be
accepted and processed as directed by the Authorized Delegate.
The Governing Body designates and authorizes Participant's Bank, (the Bank), identified in Exhibit B attached,
designating the Account Number and ABA Number to send or transfer funds to the State Treasurer for purchase
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ofSTIP shares and Wdeposit distributions of and withdraw proceeds resulting from sales ofSTIP shares in the
Bank's Account identified in Exhibit B attached which is a (check one) checking account [X] savings
account
The GoverningDody: (check one) I}{}BS [ ] DOES NOT [}{ ] aUowthe Aoihodaod ve(ochange
either the Bank or the Account; if 'DOES' in checked, the Board will notify both the oOloc of the f\u|bodzmd
RoDoemontzdvo AND the office of the Governing Body within three (3) huxiouna duva that such uchxn8c has
been made.
The Governing Body: (check one) DOES[X]DOES NOT []allow the Authorized Representative Wchange
the earnings distribution method; JDOES NOT iechecked, the Governing Body chooses the following earnings
distribution method (check one) reinvest cash earnings into STIP [ ] distribute cash earnings to the Bank [ ].
Section 2.05 Change of Authorized Representative. Any change to the /\uiho6xod
Representative requires u new Resolution adopted by the Governing Body; however the absence of an
/\udbodzcd Representative does not nullify the authority of the Authorized Delegate(s) then in effect and so
authorized Lomake STIPtransactions.
Section 2.06 Annual Confirmation. The Board will provide on anannual basis to both the
(}ovornn�Body and �e}\utbmizodBeproucn�bvcthe foOovvinAinkxo�uionaxupyour onthe Board's records:
The name ofthe AuthorizedRepresentative;
Tbcnune(m) ofany Authorized Ddegato(x);and
The name of the Bank and the associated Account Number (truncated).
Section 2.07 Agreement uyset forth bothis Resolution will take
effect when the Certificate as on Resolution and Adopting Vote, this Resolution and Exhibits /\ uudQ' each
uomplekd, dated and duly executed, are delivered to and received hythe Board and will stay iueffect until
terminated iuwriting bythe Governing Body.
ARTICLE III
MISCELLANEOUS
8eodoo3.8\ No Guaranteed Return. The Governing Body understands and agrees that there
is no minimum or maximum amount of interest rate or any guaranteed rate of return on STIP shares or funds
invested inSTlPshares.
Section 3.02 Voluntary Participation. By adopting this Rcoo|udou` the Governing Body
acknowledges that it is not compelled to participate in STIP, and that its participation in STIP is Voluntary, and
accepts and uArocs to the Progcum, its udozioimUobon and governance, and its policies, procedures and
participation requirements as set forth by law and the Board.
Scodon3I8 Responsibility for Participant Mistakes. The Governing Body and Participant
agree (ohold the State ofMontana, the Board, and their members, officials and employees harmless for the acts,
omissions and mistakes of the Participant, Governing Body and their members, officials and omp|oyeea,
including but not limited to: Authorized 8cpoeuuuio1ivm or Authorized Delegate who, for any reason, is not
qualified or properly Um|od with the Board as upecmixxibie representative to authorize transactions using the
STDPProgram; vvzoo�instructions uaioumouotaortiming nfsales orpurchases; ornnioxeddeadlines.
Section 3.04 No Warranty. The Governing Body and Purdoipuo( acknowledge and agree
that the Board makes no warranty that funds will be immediately available in the event of any failure of a third
party or that Governing Body will not suffer losses due to acts of God, or other calamities, or other market
dislocations or interruptions.
Section 3.05 Participation Conditions, STIP Administration. The Governing Body and
Participant acknowledge and agree that the Board will allow participation in STIP by and conduct STIP business
with only those parties it determines are qualified and authorized to participate in the Program and which abide
by the Board's policies, procedures and participation requirements; that the Board administers the STIP Program
subject to Montana law and prudent fiduciary practices as required by Montana law and Board policy; and that
the Board is legally bound to manage the Unified Investment Program, which includes STEP, in accordance with
the prudent expert rule as set forth in Montana law.
Section 3.06 STIP Not Insured Against Loss. The Governing Body and Participant
understand and acknowledge that the Board's STIP Program is NOT FDIC insured or otherwise insured or
guaranteed by the federal government, the State of Montana, the Board or any other entity against investment
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losses. The Governing Body and Participant further understand and acknowledge that the Board's STIP policy
requires maintenance of a reserve fund to offset possible losses and that STIP interest earnings may be used to
fund this reserve before the net earnings are distributed to the STEP Participants, but that such reserves may not
be adequate to cover investment losses.
ARTICLE IV
EXHIBITS A AND B
Section 4.01 Approval and Adoption of Exhibits A and B. Attached to this Resolution as
Exhibits A and B, are the STIP Participation Information Sheet, and the Electronic Funds Transfer Authorization
Form, which together provide the instructions and the details required by the Board to enable Participant's
participation in the STIP Program. The Governing Body and Participant represent and agree that the attached
Exhibits A and B have been completed and executed by the Participant's Authorized Representative and that
Exhibits A and B must be complete and acceptable to the Board before participation will be allowed in the STIP
Program, Exhibits A and B are hereby incorporated into and made a part of this Resolution, and are approved
and adopted by the Governing Body as if set forth fully herein,
APPROVED AND ADOPTED by the City Council of the City of Kalispell, Montana this 7th
day of March, 2016.
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Attest:
B
Aimee Brunckhorst, CMC
City Clerk
Mark Johnson
Mayor
4
Exhibft A
STYP PARUCOATION MORMATION SHEET
STIP Program Manager
Montana Board of Investments
For Official Use Only
boi—stip@,mt.gov
PO Box 200126 Helena, MT 59620-0126
STIP DATA
Phone 406.444.0003 Fax 406.444.4268
INVEST TA
ACCT ID
11
(Requests must be submitted by Authorized Representative of the
Participant.
-
The STIP Participant listed below hereby agrees to participate in the STIP Program as established
render Section 176-204, MCA., and the terms and conditions of STIP operations as determined and set
by theBoard of Investments and warrants asf �qllows.
.Montana
Section 1. STIP Participant Information Summary
Tax
STIP Participant
City of Kalispell, Montana
Identification
81-6001281
Name -1,
Number (TIN)
Mailing Address'-->
PO Box 1997
City --I, I
Kalispell
(State => jMiTf 717ip -3,1
599--03-
STIP Account 4 =>
(For official use
jonly)
Authorized
Representative
Rick
Name,
Wills
Finance Director
Name, First -i>
(Last
Title =i>
Telephone Number
1
(406) 758-7950
Fax Number -3
'58
E-mail
rwills@kalispell.com
Section 2. Investment
and Earnings �nformation
The STIP Participant has the option to either reinvest their earnings or distribute earnings.
Check one box only.
Reinvest Earnings
V
Distribute Earnings
Section 3. Authorized Delegates
The Authorized Delegate(s) whose name(s) appears below is (are) authorized to purchase and sell shares in
STIP for the Participant. The Authorized Representative must be included if he/she is authorized to
purchase and sell shares in STIP for the Participant.
Name, First
Deb
Name, Last +1
Deist
E-Mail +
I ddeist@kalispell.com
Name, First+ lAimee
Name, Last 41
Cooke IE-Mail
+
acooke@kalispell.com
Rick
wills IE-Mail
rwills@kalispell.com
Name, First +I
Name, Last +I
4
I hereby certify as the Authorized Representative of the STIP Participant that all of the information
contained herein is true, accurate and complete as of the date hereof.
Signature -1>
jDate 4
Printed Name
ITitle -j>iFinance
Director
Exhibit B
IFE LLJEC JL RO V �C FUNDS DS TRANSFER AU JL HOR® ZA IL M V FORM
STIP Program Manager
Montana Board of Investments
boi_stip@mt.gov
PO Box 200126 Helena, MT 59620-0126
Phone 406.444,0003 Fax 406.444.4268
IlLoc2l Government Nmme-
City of Kalispell, Montana
STEP Account #a
(Foy^ official use only)
I, the undersigned, a duly Authorized Representative of the local governing board, hereby authorize the
Montana Board of Investments to initiate electronic debit and/or credit to the following account. The
Authorized Representative acknowledges the origination of ACH transactions to the listed account
complies with the provisions of U.S. law.
Any sale, purchase, or distribution of funds will be made by Electronic Funds Transfer or wire debiting or
crediting the appropriate treasury or shareholder bank account. Please specify the local government
depository.
Check one transaction type only.
(� Checking Account
I Savings Account
1IName of Bank4
Glacier Bank
Routing/ABA No+ 1292970825
(Address-
202 Main Street
�City+
Kalispell
IState+ MT Izil,4159901
IlAccount
I hereby certify as the Authorized Representative of the STIP Participant that all of the information
contained herein is true, accurate and complete as of the date hereof.
IlSignature 4
�Date+
11Printed Name+
�Title+
Finance Director
Please notify the Montana Board of Investments if you have applied a filter or a block to your account.
RESOLUTION AUTHORIZING PARTICIPATION IN THE SHORT TERM INVESTMENT POOL (STfP)
MONTANA BOARD OF INVESTMENTS
CERTIFICATE AS TO
RESOLUTION NO. 5754 AND ADOPTING VOTE
Political Subdivision: City of Kalispell, Montana
Governing Body: City Council of the City of Kalispell, Montana
Type, date, time and place of meeting: A regular meeting held on March 7, 2016 at 7 o'clock p.m. in Kalispell,
Montana.
Members present:
Members absent:
1, the undersigned, being the duly qualified and acting recording officer of the political subdivision
identified above ("Participant"), certify that the attached RESOLUTION AUTHORIZING PARTICIPATION
IN THE BOARD OF INVESTMENTS OF THE STATE OF MONTANA SHORT TERM INVESTMENT
POOL AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATED
THERETO ("Resolution") and Exhibits A and B thereto are true and correct copies of the Resolution and
Exhibits A and B on file in the original records of the Participant and in my legal custody; that the Resolution
and Exhibits A and B were duly approved and adopted by the Governing Body of the Participant at the above
described meeting, which meeting was attended throughout by the members indicated above, constituting a
quorum of the Governing Body, pursuant to public notice of such meeting as required by law; and that the
Resolution and Exhibits A and B have not as of the date hereof been amended or repealed.
WITNESS my hand officially as such recording officer this — day of 20
By
Its City Clerk