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May 9, 2016REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 R_m_ May 9, 2016 1_ MEETING The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City Office Building, 207 N_ 12— Street, Nederland, Texas. See attached for quorum_ The following statement was read by Mayor Nugent: PURSUANT TO SECTION 30.07, PENAL CODE BY LICENSE HOLDER WITH AN OPENLY CARRIED HANDGUN, A PERSON LICENSED UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE CHANDGUN LICENSING LAWS, MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED OPENLY_" 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were led by Gay Ferguson, City Clerk. 3. CONSENT AGENDA - All consent agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a councilmember so requests, in which event the item will be removed from the Consent Agenda and considered separately. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember Neal to approve the Consent Agenda Items a -d as presented_ MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Belaire. Noes: None_ a. Minutes — April 25, 2016 regular meeting b. Consider action authorizing the closure of various streets and the use of Tex Ritter Park for the 2017 Relay for Life Event. c. Consider action authorizing the closure of various City streets For the 2— Annual Kristin Raye Paris 1 -Mile Fun Run/Walk event. d. Payments: Gulf Coast Protective Coatings, Inc_ - $208,5736.75, South 5— Street Water Tower Rehabilitation project 4. REGULAR AGENDA a_ A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Albanese to accept the Quarterly Investment Report from the Finance E>epartment_ MOTION CARRIED_ Minutes Continued, May 9, 2016 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. b. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem Albanese to approve Resolution No. 2016-06, amending the City's Investment Policy. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. c. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember Austin to approve an indemnification, hold harmless and insurance agreement, pending final legal review and approval, between the City of Nederland and the Heritage Court Homeowners Association to provide solid waste water services along the private alley in Heritage Court subdivision. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. d. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Albanese to approve Resolution No. 2016-07, authorizing the submittal of a Body Worn Camera grant application to the Office of the Governor, Criminal Justice Division. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. e. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember Neal to authorize the solicitation of requests for proposals regarding debris removal services and emergency products, equipment and services. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. 5. EXECUTIVE SESSION The regular meeting was recessed at 4:46 by Mayor Nugent for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.071, Consultation with City Attorney. 6. RECONVENE The regular meeting was reconvened at 5:44 by Mayor Nugent. He announced the Executive Session was held for informational purposes only and no action is necessary. 7. COMMUNICATION City Manager's Report: a. Workshop and Special City Council meeting - Monday, May 16th b. Miscellaneous: • Chamber Coffee in the morning at the First Baptist Church • Closing Ceremonies for Adaptive Sports for Kids, May 14th at 10:00 a.m. Minutes Continued, May 9, 2016 Mr. Duque thanked Joni Underwood for arranging the National Day of Prayer. 7. ADJOURN There being no further business a motion was made by Councilmember Neal and seconded by Mayor Pro Tem Albanese to adjourn the meeting at 5:47 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. R. A. Nugent ayor City of Nede and, Texas ATTEST: miallIOUM11--- da—y'FJgWon,bityCI&V City of Nederland, Texas CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT R. A. Nugent Mayor 7 Talmadge Austin Council Member -Ward I V Billy Neal Council Member- Ward II Don Albanese Council Member -Ward III Craig Belaire Council Member -Ward IV V Chris Duque City Manager Gay Ferguson City Clerk V Jesse Branick City Attorney V Cheryl Dowden Director of Finance Darrell Bush Police Chief V Gary Collins Fire Chief V Steve Hamilton Director of Public Works v George Wheeler Building Official Victoria Klehn Librarian v Holly Guidry Guid Human Resources Director �JoniUnderwood Executive Secretary [4nnota-Ear-Aft Parks Director ka,,uw7 R. / Olayor Mav 5, 2016 Date ABSENT CITY OF NEDERLAND RESOLUTION NO. 2016-06 A RESOLUTION OF THE CITY COUNCIL APPROVING THE CITY'S INVESTMENT POLICY AS AMENDED NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the City of Nederland's Investment Policy, substantially in the form attached hereto as "Exhibit A," has been reviewed and is hereby adopted. All changes to the policy are reflected therein. PASSED AND APPROVED this the 9th day of May, 2016. R. A. Nude t, yor City of Nederland, Texas ATTEST: Gay Fergu n, City C16tk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: L_ Jes BraFerland, ity Attorney Ci of N Texas "Exhibit All CITY OF NEDERLAND INVESTMENT POLICY Amended 5-9-16 The purpose of this document is to set forth specific investment policy and strategy guidelines for the City of Nederland in order to achieve the goals of safety, liquidity, yield, and public trust for all investment activity. This policy serves to satisfy the statutory requirements (specifically the Public Punds Investment Act, V.T.C.A. Government Code, Chapter 2256 (the "Act") to define, adopt and review a formal investment strategy and policy. INVESTMENT STRATEGY The City of Nederland maintains portfolios which utilize four specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolios: A. Investment strategies for operating funds and commingled pools containing operating funds have, as their primary objective, to assure 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. The dollar weighted average maturity of 365 days or less will be calculated using the stated final maturity date of each security. B. Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligations on the required payment date. Securities purchased shall not have a stated final maturity date which exceeds the debt service payment date. C. Investment strategies for debt service reserve funds shall have as the 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. Volatility shall be further controlled through the purchase of securities carrying the highest coupon available, within the desired maturity and quality range, without paying a premium, if at all possible. Such securities will tend to hold their value during economic cycles. D. Investment strategies for special projects or special purpose fund portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The stated final maturity dates of securities held should not exceed the estimated project completion date. I. SCOPE The investment policy applies to all financial assets of the City of Nederland. The funds are accounted for in the City's Comprehensive Annual Financial Report (CAFR) and include: *General Fund *Special Revenue Funds *Debt Service Funds *Capital Project Funds *Enterprise Funds *Internal Service Funds *Any new fund created by the legislative body, unless specifically exempted II. OBJECTIVES The City of Nederland shall manage and invest its cash with four objectives, listed in order of priority: Safety, Liquidity, Yield, and Public Trust. The safety of the principal invested always remains the primary objective. 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 which includes collection of accounts receivable, vendor payment in accordance with invoice terms, and prudent investment of available cash. Cash management is defined as the process of managing monies in order to insure maximum availability and maximum yield on short-term investment of pooled idle cash. SAFETY The primary objective of the City's investment activity is the preservation of capital in the overall portfolio. Each investment transaction shall be conducted in a manner to avoid capital losses, whether they be from securities defaults or erosion of market value. LIQUIDITY The City's investment portfolio shall be structured such that the City is able to meet all obligations in a timely manner. This shall be achieved by matching investment maturities with forecasted cash flow requirements. YIELD The City's cash management portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio. PUBLIC TRUST All participants in the City's investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transactions which might impair public confidence in the City's ability to govern effectively. III. RESPONSIBILITY AND CONTROL DELEGATION OF AUTHORITY AND TRAINING Authority to manage the City's investment program is derived from an ordinance approved by the City Council. The Director of Finance and the City Manager are designated as investment officers of the City and are responsible for investment decisions and activities. The Director of Finance shall establish written procedures for the operation of the investment program, consistent with this investment policy. TRAINING The investment officers shall attend at least one training session relating to the officer's responsibility under the Act within twelve (12) months after assuming duties, and not less than ('�n (8) eight hours of training every (2) two years, relating to their investment responsibilities. The two-year period shall begin on the first day of the City's fiscal year and consist of the two consecutive fiscal years after that date. Training must include education in investment controls, security risks, strategy risks, market risks, diversification, and compliance with the PFIA. The training must be provided by an independent source approved by the governing body or designated investment committee. For these purposes, courses or seminars offered by the Government Finance Officers Association, Government Finance Officers Association of Texas, Texas Municipal League, Southwest School of Government Finance, University of North Texas, North Central Texas Council of Governments, Texas Association of Counties, Treasury Management Association or the Government Treasurers Organization of Texas will satisfy the training requirements. INTERNAL CONTROLS The Director of Finance is responsible for establishing and maintaining an internal 3 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 these 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. Accordingly, the Director of Finance shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures. PRUDENCE The standard of prudence to be applied by the investment officer shall be the prudent investor rule which states: All investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. In determining whether an officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: 1. The investment of all funds, or funds under the City's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment. 2. Whether the investment decision was consistent with the written policy of the City. The investment officer, 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 and that appropriate action is taken to control adverse developments. ETHICS AND CONFLICTS 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 Manager any material financial 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's portfolio. City staff shall subordinate their personal financial transactions to those of the City, particularly with regard to 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 4 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 entity. IV. REPORTING QUARTERLY REPORTING The Director of Finance shall submit a signed quarterly investment report that summarizes investment transactions for all funds covered under this policy for the preceding reporting period. 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 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 be provided to the City Manager and City Council. The report will include the following: A. A listing of the individual securities held at the end of the reporting period. B. Additions and changes to the market value during the period. C. Listing of investments by maturity date. D. Statement of compliance of the City's investment portfolio with State Law and the investment strategy and policy approved by the City Council. V. INVESTMENT PORTFOLIO Assets of the City of Nederland may be invested in the following instruments provided, however, that at no time shall assets of the City be invested in any instrument or security not authorized for investment under the Act, as the Act may from time to time be amended. AUTHORIZED INVESTMENTS A. Obligations of the United States of America, its agencies and instrumentalities. B. Direct obligations of the State of Texas and agencies thereof. C. Other obligations, the principal of and interest on which are unconditionally guaranteed by the State of Texas or United States of America. D. Obligations of the States, agencies thereof, Counties, Cities, and other political subdivisions of any state having been rated as investment quality by a nationally recognized investment rating firm, and having received a rating of not less than "A" or its equivalent. E. Certificates of Deposit of state and national banks domiciled in Texas, guaranteed or insured by the Federal Deposit Insurance or its successor or secured by obligations described in A through D above, which are intended to include all direct agency or instrumentality issued mortgage backed securities rated AAA by a nationally recognized rating agency, or by Article 2529b-1, V.T.C.S., and that have a market value of not less than the principal amount of the certificates. F. Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities pledged with a third party, selected by the Director of Finance, other than an agency for the pledger. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in Texas. G. joint peels -of political uubdiVi6i3r.s in the State efTexas wbicch in:est4n in<v-ruments 11 tieor, e4 .a 1. t law. investment to �fixr6iv-pi ccccxcc4-urr6i�Lccrv`�E�kH'cis rzuw :--zrivcvzxxxcrn, in cash peals shall be limited to 6001 of the City's entire r.. Ft f lie. Investments Pools which follow practices allowed by current law and are rated not less than AAA or an equivalent rating by at least one nationally recognized rating agency. Investments in such pools shall be limited to 60% of the City's entire portfolio. H. Not less than quarterly, the Investment Officers will monitor the credit rating for each held investment that has a Public Fund Investment Act required minimum rating. NOT AUTHORIZED The City's authorized investments options are more restrictive than those allowed by State law. State law specifically prohibits investment in the following investment securities. A. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security 6 collateral and pays no principal. B. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest. C. Collateralized mortgage obligations that have a stated final maturity date of greater than ten (10) years. D. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. HOLDING PERIOD The City of Nederland intends to match the holding periods of investment funds with liquidity needs of the City. In no case will the average maturity of investments of the City's operating funds exceed two (2) years. The maximum final stated maturity of any investment shall not exceed five (5) years. Investments in all funds shall be managed in such a way that the market price losses resulting from interest rate volatility would be offset by coupon income and current income received from the volume of the portfolio during a twelve (12) month period. RISK AND DIVERSIFICATION The City of Nederland recognizes that investment risks can result from issuer defaults, market price changes, or various technical complications leading to temporary illiquidity. Risk is controlled through portfolio diversification which shall be achieved by the following general guidelines: A. Risk of issuer default is controlled by limiting investments to those instruments allowed by the Act, which are described herein. B. Risk of market price changes shall be controlled by avoiding over -concentration of assets in a specific maturity sector, limitation or average maturity of operating funds investments to one year, and avoidance of over -concentration of assets in specific instruments other than U.S. Treasury Securities and Insured or Collateralized Certificates of Deposit. C. Risk of illiquidity due to technical complications shall be controlled by the selection of securities dealers as described herein. VI. SELECTION OF BANKS AND DEALERS DEPOSITORY At least every five (5) years a Depository shall be selected through the City's banking services procurement process. In selecting a depository, the credit worthiness of institutions shall be considered, and the Director of Finance shall conduct a review of prospective depositories credit characteristics. SECURITIES DEALERS All financial institutions and broker/ dealers who desire to become qualified for investment transactions must supply the following as appropriate: *Proof of National Association of Securities Dealers (NASD) certification; *Proof of state registration; *Certification of having read the City's investment policy signed by a registered principal of the organization; and *Acknowledgment that the organization has implemented reasonable procedures and controls in an effort to preclude imprudent investment activities arising out of investment transactions conducted between the City and the organization. VII. SAFEKEEPING AND CUSTODY INSURANCE OR COLLATERAL All deposits and investments of City funds other than direct purchases of U. S. Treasuries or Agencies shall be secured by pledged collateral. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 100% of market value of principal and accrued interest on the deposits or investments less an amount insured by the FDIC or FSLIC. Evidence of the pledged collateral shall be maintained by the Director of Finance or a third party financial institution. Collateral shall be reviewed monthly to assure that the market value of the pledged securities is adequate. SAFEKEEPING AGREEMENT Collateral pledged to secure deposits of the City shall be held by a safekeeping institution in accordance with a safekeeping agreement which clearly defines the procedural steps for gaining access to the collateral should the City of Nederland determine that the City's funds are in jeopardy. The safekeeping institution, or Trustee, shall be the Federal Reserve Bank or an institution not affiliated with the firm pledging the collateral. s COLLATERAL DEFINED The City of Nederland shall accept only the following securities as collateral: A. FDIC insurance coverage; B. Direct obligations of the United States or its agencies and instrumentalities; C. Obligations, the principal and interest on which, are unconditionally guaranteed or insured by the State of Texas; and/or D. A bond of the State of Texas or of a county, city or other political subdivision or the State of Texas having been rated as investment grade (investment rating no less than "A" or its equivalent) by a nationally recognized rating agency with a remaining maturity of ten (10) years or less. SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of Finance or the City's independent auditors. DELIVERY VS. PAYMENT Treasury Bills, Notes, Bonds and Governmental Agencies' securities shall be purchased using the delivery vs. payment method. That is, funds shall not be wired or paid until verification has been made that the correct security was received by the Trustee. The security shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. VIII. INVESTMENT POLICY ADOPTION The City of Nederland investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed for effectiveness on an annual basis by the City Council. 9 GLOSSARY OF COMMON TREASURY TERMINOLOGY Agencies: Federal agency securities Asked: The price at which securities are offered. Bid: The price offered for securities. Broker: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets. Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate. Large - denomination CD's are typically negotiable. Collateral: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. Comprehensive Annual Financial Report (CAFR) : The official annual report for the City of Nederland. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance io with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. Coupon: (a) The annual rate of interest that a bond issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. Debenture: A bond secured only by the general credit of the issuer. Delivery versus payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. Discount: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. Discount Securities: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U. S. Treasury bills. Diversification: Dividing investment funds among a variety of securities offering independent returns. Federal Credit Agencies: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S & L's, small business firms, students, farmers, farm cooperatives, and exporters. Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. Federal National Mortgage Association (FNMA) : FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely 11 payment of principal and interest. Federal Open Market Committee (FOMC): Consists of seven (7) members of the Federal Reserve Board and five (5) of the twelve (12) Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open -market as a means of influencing the volume of bank credit and money. Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven (7) member Board of Governors in Washington, D. C., twelve (12) regional banks and approximately 5,700 commercial banks that are members of the system. Government National Mortgage Association (GNMA or Ginnie Mae): Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U. S. Government. Ginnie Mae securities are backed by FHA, VA, or FMHM mortgages. Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. Local Government Investment Pool (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. Market Value: The price at which a security is trading and could presumably be purchased or sold. Master Repurchase Agreement: To protect investors, many public investors will request that repurchase agreements be preceded by a master repurchase agreement between the investor and the financial institution or dealer. The master agreement should define the nature of the transaction, identify the relationship between the parties, establish normal practices regarding ownership and custody of the collateral securities during the term of the investment, provide remedies in the case of default by either party and clarify issues of ownership. The master repurchase agreement protects the investor by eliminating the uncertainty of ownership and hence, allowing investors to liquidate collateral if a bank or dealer defaults during the term of the agreement. Maturity: The date upon which the principal or stated value of an investment becomes due and payable 12 Money Market: The market in which short-term debt instruments (bill, commercial paper, bankers' acceptances, etc.) are issued and traded. Open Market Operations: Purchases and sales of government and certain other saturates in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy.. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. Portfolio: Collection of securities held by an investor. Primary Dealer: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms. Prudent Person Rule: An investment standard. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Qualified Public Depositories: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability, and which has been approved by the Public Deposit Protection Commission to hold public deposits. Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return. Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution. Securities & Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation. Treasury Bills: A non-interest bearing discount security issued by the US. Treasury to finance the national debt. 13 Most bills are issued to mature in three (3) months, six (6) months, or one (1) year. Treasury Bond: Long-term U. S. Treasury securities having initial maturities of more than ten (10) years. Treasury Notes: Intermediate term coupon bearing U. S. Treasury securities having initial maturities from one (1) to ten (10) years. Yield: The rate of annual income return on an investment, expressed as a percentage. (A) Income Yield is obtained by dividing the current dollar income by the current market price of the security. (B) Net Yield or Yield to maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period form the date of purchase to the date of maturity of the bond. RESOLUTION NO. 2016-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, AUTHORIZING THE SUBMITTAL OF A GRANT APPLICATION TO THE OFFICE OF THE GOVERNOR, CRIMINAL ]USTICE PROGRAM FOR THE CITY OF NEDERLAND COMMUNITY POLICING, BODY WORN CAMERA INITIATIVE WHEREAS, the Nederland City Council finds it in the best interest of the citizens of Nederland, Texas , that The City of Nederland Community Policing, Body Worn Camera Initiative be operated for 2016; and WHEREAS, the Nederland City Council agrees to provide applicable matching funds for said project as required by the Office of the Governor, Criminal Justice Program, Body Worn Camera Program grant application; and WHEREAS, the Nederland City Council agrees that in the event of the loss or misuse of the Officer of the Governor funds, the Nederland City Council assures that the funds will be returned to the Office of the Governor in full; and WHEREAS, the Nederland City Council designates the City Manager as the grantee's authorized official. The authorized official is given the power to apply for, accept, reject, alter, or terminate the grant on behalf of the applicant agency. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, to authorize the submission of the grant application for The City of Nederland Community Policing, Body Worn Camera Initiative to the Office of the Governor. PASSED AND APPROVED by the City Council of the City of Nederland this the 9T" day of May, 2016. R. A. Nugent, Mayor City of Nederland, Texas ATTEST: i'% ssVI�ili� . . APPROVED AS TO FORM AND LEGALITY: k JesBra c , City Attorney