HomeMy WebLinkAboutAGENDA REPORT 2014 1015 CCSA REG ITEM 10DITEM 10.D.
CITY OF ~OORPARI<, CALIFORNIA
City Councll IVieeting
MOORPARK CITY COUNCIL
AGENDA REPORT
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BY: 'ii; : V3J':; d tn
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director aA--
DATE:
SUBJECT:
October 6, 2014 (City Council Meeting October 15, 2014)
Consider Establishing an Account with Multi-Bank Securities, Inc. to
Engage in Cash Transactions for the Purchase and Sale of Securities
According to the City of Moorpark Investment Policy and Authorize
the Mayor to Execute the Non-Corporate Resolution Form with Multi-
Bank Securities, Inc.
BACKGROUND
The City Treasurer currently utilizes the services of three broker dealers to purchase
and sell debt securities; all in accordance with the City of Moorpark Investment Policy
(Investment Policy). The three brokers are: Wedbush Securities, Mutual Securities,
and Raymond James. Staff is requesting the City Council authorize the addition of one
more broker, Multi-Bank Securities, Inc (MBS).
The Moorpark Municipal Code, Section 2.20.030 states:
The city treasurer shall perform such duties as are prescribed by Sections
41000 through 41007 of the Government Code of the state and by any
other provisions of law applicable to deposit and investment and
safekeeping of public funds of the city.
DISCUSSION
Currently, the three brokers the city utilizes have an offer sheet of the debt securities
they are selling. These offer sheets list approximately 40 to 80 securities. MBS offers a
unique on-line trading platform that allows the user to search thousands of debt
securities for purchase. The platform is called "eConnectDirect" and will allow the user
to upload their portfolio of securities in order to maintain sufficient liquidity and cash
flows. The eConnectDirect software will literally allow the City to view thousands of
54
Honorable City Council
October 15, 2014
Page 2
securities. The addition of MBS will allow the City to compare the securities and prices
offered by four brokers.
Recently, the National Association of Counties (NACO) announced their partnership
with MBS. The NACO press release states:
NACo's Financial Services Center (FSC) is launching a new service to
help its members manage their fixed-income investment needs through a
robust online platform, eConnectDirect.
Designed by Multi-Bank Securities, Inc. (MBS), eConnectDirect is an
online investment marketplace to help institutional clients search,
compare, transact and manage their fixed-income portfolios. It delivers
information that allows them to perform transactions across thousands of
fixed-income assets ...
"eConnectDirect is particularly well-suited to help counties remain
responsive to investment-related regulation and the transparency
requirements our members face," Chase said. "We are confident that this
partnership will offer exceptional results and help counties be better
stewards of taxpayer resources."
www.naco.org -Report titled, "New FSC service helps counties manage investment needs"
MBS requires the City to sign their "Non-Corporate Resolution Form" which establishes
the account and the "Institutional Suitability Certificate". MBS recommends that the
signer establishing the account not be an authorized user. Staff is requesting the City
Council consider empowering the Mayor to sign these forms and name Steven Kueny
(City Manager), Ron Ahlers (Finance Director) and lrmina Lumbad (Budget and Finance
Manager) as authorized users on this account.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
Authorize the Mayor to execute the Non-Corporate Resolution Form and the Institutional
Suitability Certificate with Multi-Bank Securities.
Attachments:
1. Non-Corporate Resolution Form
2. Institutional Suitability Certificate
55
IMBSt MULTI-BANK SECURITIES, INC..
ATTACHMENT 1
NON-CORPORATE RESOLUTION FORM
LEGAL NAME OF ORGANIZATION: __ C._t_l'/ ___ O....:_P. __ H_o_o_i2-_P_A_(l_J_( _____________ _
A' v rl I c...1 ?ftl,.17Y TYPEOFORGANIZAT~N: ____ l_"l ____________________________ _
ACCOUNT NUMBER: RM8434671
Be it resolved that each of the following has been duly elected or appointed and is now legally holding the title set opposite
his/her name.
C11V
(Name of Authorized Person)
KQl\J A1tL.f/'2S
(Name of Authorized Person) (Title)
l T2-H1 /JA L vM &A~ ~-.1dGe-i g f-ll"I~ h~N~
(Name of Authorized Person) (Title)
__Jl,§ERTl-FICAILON, _____________ ' ___ _ · · ________ _
1, _ _,,,J~A_N_J_e._€ __ S:_. _i'_AA.___;;v_1_AJ"-+---=-H...;,_lt-_1b_..:..i2-~.-----------of
(Name and Title of Officer or Partner signing this Non-Corporate Resolution)
/I I -,.. Y "It; Ho -c-. .O.Ll A '"' I 11 __ L.-___ , __ "' _____ L..f_ t.I_ •l'r_"-1_'--_______ hereby certify that said organization is duly and ega y
(Name of Organization)
organized and existing and that a quorum of the __ C.....:0·_17---'Y'---_L--'u_\.J_N_c.._/_L ____________ _
(Name of Governing Body of Organization)
of said Organization attended a meeting duly held on the _/_S_71_'ff __ day of Dc-7'0?:£/L 2otl
at which the following resolutions were duly adopted, and that such resolutions are in full force and effect on this date and
donotconflictwiththe f10oj2..PAIZJC HvNtct?A: L Co h C of said organization.
(Name of Governing Rules)
I further certify that I have the authority to execute this Non-Corporate Resolution on behalf of said Organization, and that
the __ C,_t_T_Y ___ C..O __ v_N_C.._/_L _______ of the Organization which took the action called for by the
(Name of Governing Body of Organization)
resolutions annexed hereto has the power to take such action.
*SIGNATURE: DATE:
--------------------~ ---------------
TITLE:_...;._11._,Y\-;._:,_;;Y_o__;l'c_K-________________________ _
*The signer should be someone other than one of the authorized person(s) named above. However, if signed by an authorized
person named above, the Fed Wire Letter of Authorization and/or ACH Authorization Agreement must be signed by an authorized
person other than the signer of this document.
Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation.
Member FINRA, NYSE, SIPC. T rademark(s) belong to their respective owners.
Multi-Bank Securities, Inc.@
Member of FINRA & SIPC; MSRB
PAGE 1 OF3
FRM-NONCORP-RES-6-09 56
Certified Copy Of Certain Resolutions by the Governing Body of Said Organization Whereby the Establishment and
Maintenance of Accounts Have Been Authorized.
RESOLVED-
FIRST: That the named Authorized Persons of this organization or ___________________ or
-----------------be and they hereby are, and each of them is, authorized and empowered, for
and on behalf of this organization (herein called the "Organization''), to establish and maintain one or more accounts with
Multi-Bank Securities, Inc. (herein called the "Brokers") and Pershing LLC, its successors or assigns, and for the purpose
of purchasing, investing in, or otherwise acquiring, selling, possessing, transferring, exchanging, pledging, or otherwise
disposing of or realizing upon, and generally dealing in and with;
(a) THIS PARAGRAPH PERMITS CASH TRANSACTIONS IN SECURITIES
any and all forms of securities including, but not by way of limitation, shares, stocks, options, stock options, stock index
options, foreign currency options and debt instrument options, bonds, debentures, notes, scrip, participation certificates,
rights to subscribe, warrants, certificates of deposit, mortgages, chooses in action, evidence of indebtedness, commercial
paper, certificates of indebtedness and certificates of interest of any and every kind and nature whatsoever, secured or
unsecured, whether represented by trust, participating and/or other certificates or otherwise;
(b) THIS PARAGRAPH PERMITS CASH AND MARGIN TRANSACTIONS IN SECURITIES
any and all forms of securities including, but not by way of limitation, shares, stocks, options, stock options, stock index
options, foreign currency options and debt instrument options, bonds, debentures, notes, scrip, participation certificates,
rights to subscribe, warrants, certificates of deposit, mortgages, chooses in action, evidence of indebtedness, commercial
paper, certificates of indebtedness and certificates of interest of any and every kind and nature whatsoever, secured or
unsecured, whether represented by trust, participating and/or other certificates or otherwise; and margin transactions,
including short sales;
The fullest authority at all times with respect to any such commitment or with respect to any transaction deemed by any
of the said Authorized Persons and/or agents to be proper in connection therewith is hereby conferred, including
authority (without limiting the generality of the foregoing) to give written or oral instructions to the Brokers with respect
to said transactions; to bind and obligate the Organization to and for the carrying out of any contract, arrangement, or
transaction, which shall be entered into by any such Authorized Persons and/or drafts drawn upon the funds of the
Organization such sums as may be necessary in connection with any of the said accounts to deposit funds with the
Brokers; to deliver securities and/or contracts to the Brokers; to order the transfer or delivery thereof to any other person
whatsoever, and/or to order the transfer record of any securities, or contracts, or titles, to any name selected by any of
the said Authorized Persons or agents; to affix the Organization's seal to any documents or agreements, or otherwise; to
endorse any securities and/or contracts in order to pass title thereto; to direct the sale or exercise of any rights with
respect to any securities; to sign for the Organization all releases, powers of attorney and/or other documents in
connection with any such account, and to agree to any terms or conditions to control any such account; to direct the
Brokers to surrender any securities to the proper agent or party for the purpose of effecting any exchange or conversion,
or for the purpose of deposit with any protective or similar committee, or otherwise; to accept delivery of any securities,
to borrow money and securities, if applicable, and to secure repayment thereof with the property of the Organization; to
appoint any other person or persons to do any and all things which any and all things which any of the said Authorized
Persons and/or agents is hereby empowered to do, and generally to do and take all action necessary in connection with
the account, or considered desirable by such Authorized Persons and/or agents with respect thereto.
Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation.
Member FINRA, NYSE, SIPC. Trademark{s) belong to their respective owners.
Multi-Bank Securities, Inc.®
Member of FINRA & SIPC; MSRB
PAGE 2 OF 3
FRM·NONCORP·RES·6--09 57
SECOND: That the Brokers may deal with any and all of the persons directly or indirectly by the foregoing resolution
empowered, as though they were dealing with the Organization directly.
THIRD: That the person signing this Non-corporate Resolution on behalf of the Organization be and hereby is
authorized, empowered and directed to certify to the Brokers:
(a) a true copy of these resolutions;
(b) specimen signatures of each and every person by these resolutions empowered;
(c) a certificate (which, ifrequired by brokers, shall be supported by an opinion of the general counsel of the
Organization, or other counsel satisfactory to the Brokers) that the Organization is duly organized and existing, that
its governing rules empower it to transact the business by these resolutions defined, and that no limitation has been
imposed upon such powers by the governing rules of the Organization or otherwise.
FOURTH: That the Brokers may rely upon the certified copy of the resolutions, specimen signatures, and certificate, as
continuing fully effective unless and until the Brokers shall receive due written notice of change or rescission, and the
dispatch or receipt of any other form of notice shall not constitute a waiver of this provision. nor shall the fact that any
person hereby empowered ceases to be an Authorized Person of the Organization or becomes an Authorized Person
under some title, in any way affect the powers hereby conferred, but the failure to supply any specimen signature shall
not invalidate any transaction where the party authorizing the same has been actually empowered thereto by or in
conformity with these resolutions.
FIFTH: That in the event of any change in the.office of powers of persons hereby empowered, an Authorized Person
shall certify such changes to the Brokers in writing in the manner herein above provided, which notification, when
received, shall be adequate both to terminate the powers of the persons therefore authorized, and to empower the persons
thereby substituted.
SIXTH: That the Authorized Persons of the Organization be, and hereby is, authorized and empowered to countersign
items as aforesaid.
SEVENTH: That the foregoing resolutions and the certificates actually furnished to the Brokers by the Authorized
Person of pursuant thereto, be and they hereby are made irrevocable until written notice of the revocation thereof shall
have been received by the Brokers.
Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation.
Member FINRA, NYSE, SIPC. T rademark(s) belong to their respective owners.
Multi-Bank Securities, lnc.s
Member ofFINRA & SIPC; MSRB
PAGE 3 Of 3
FRM-NONCORP-RES-6--09 58
lMBSI MULTI-BANK SECURITIES, INC.® ATTACHMENT 2
Institutional Suitability Certificate
FINRA RULE 2111
Affirmative Indication by Institution -Exercising Independent Judgment
In connection with any recommended transaction or investment strategy by a registered broker-dealer, the
undersigned acknowledges on behalf of the Institution named below that
1. It is an ;;Institutional Account" as defined in FINRA Rule 4512(c);
PLEASE CHECK THE APPROPRIATE BOX BELOW
L (1) a Credit Union with total assets of $50 Million or more (or any other entity with total assets in
excess of $50 Million). If a Credit Union (or any other entity) has total assets LESS THAN $50
Million, check Box 4, and provide your most recent Investment Policy;
r (2) a bank, savings and loan association, insurance company or registered investment company;
L (3) an investment adviser registered either with the SEC under Section 203 of the Investment
Advisers Act or with a state securities commission (or any agency or office performing like
functions);
~ (4) MBS will determine suitability (Please provide your most recent Investment Policy)
2. It (1) is capable of evaluating investment risks independently, both in general and with regard to all
transactions and investment strategies involving a security or securities; and (2) will exercise
independent judgment in evaluating the recommendations of any broker-dealer or its associated
persons, unless it has otherwise notified the broker-dealer in writing;
3. MBS will be notified by the Institutional Account if anything in this Certificate ceases to be true;
4. He or she is authorized to sign on behalf of the Institutional Account named below.
By signing this Certificate, the undersigned affirms that the above statements are accurate but does not waive any
rights afforded under U.S. federal or state securities laws, including without limitation, any rights under Section
1 O(b) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
This Certificate shall apply with respect to all recommended transactions and investment strategies
involving securities that are entered into by the "Institutional Account" named in this Certificate, whether
for the account(s) of such Institutional Account or for the account of any beneficial owner that has delegated
decision making authority to such Institutional Account.
Institutional Account Name
799 Moorpark Avenue
Address
Moorpark CA 93021
City, State, ZIP
U.S. Tax ID I EIN /If applicable)
Email Address
ADDRESS
PHONES
FAX
1000 Town Center, Suite 2300
Southfield, Michigan 48075
800.967.9045
248.291.1100
248.291.1101
Signature of Authorized Signatory
7]AN1c..£ S. ?AtZ,v1 N
Name of Authorized Signatory
MA Yo fl-
Title of Authorized Signatory
Date
+1 (805) 529-6864
Phone
2400 East Commercial Boulevard, Suite 812
Ft. Lauderdale, Florida 33308
800. 967. 9045
954.351.6930
954.351 .9197
Member of FINRA & SIPC; MSRB
A Veteran-Owned Business
59